Senate Bill No. 724
(By Senators Helmick, McCabe, Plymale and Kessler)
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[Introduced March 23, 2009; referred to the Committee on Health
and Human Resources; and then to the Committee on Finance.]
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A BILL to amend and reenact §11-27-16 of the Code of West Virginia,
1931, as amended, relating to the health care provider tax;
providing a definition of the term "physicians' services"; and
specifying legislative intent as to activities that qualify as
physicians' services.
Be it enacted by the Legislature of West Virginia:
That §11-27-16 of the Code of West Virginia, 1931, as amended,
be amended and reenacted to read as follows:
ARTICLE 27. HEALTH CARE PROVIDER TAXES.
§11-27-16. Imposition of tax on providers of physicians'
services.
(a)
Imposition of tax. -- For the privilege of engaging or
continuing within this state in the business of providing
physicians' services, there is hereby levied and shall be collected
from every person rendering such service an annual broad-based health care related tax.
(b)
Rate and measure of tax. -- The tax imposed in subsection
(a) of this section shall be two percent of the gross receipts
derived by the taxpayer from furnishing physicians' services in
this state.
(c)
Definitions. --
(1) "Gross receipts" means the amount received or receivable,
whether in cash or in kind, from patients, third-party payors and
others for physicians' services furnished by the provider,
including retroactive adjustments under reimbursement agreements
with third-party payors, without any deduction for any expenses of
any kind:
Provided, That accrual basis providers shall be allowed
to reduce gross receipts by their contractual allowances, to the
extent such allowances are included therein, and by bad debts, to
the extent the amount of such bad debts was previously included in
gross receipts upon which the tax imposed by this section was paid.
(2) "Contractual allowances" means the difference between
revenue (gross receipts) at established rates and amounts
realizable from third-party payors under contractual agreements.
(3) "Physicians' services" means
and is limited to those
services
that are physicians' services for purposes of Section
1903(w) of the Social Security Act furnished by a physician within
the scope of the practice of medicine or osteopathy, as defined by
the laws of this state, whether furnished in the physician's office, the recipient's home, a hospital, a skilled nursing
facility or any other location.
(A) The term "physicians' services" includes those
professional services directly furnished by a physician in the
scope of his or her employment by a hospital. Other services
rendered in conjunction with hospital-employed physicians'
services, such as the use of hospital facilities, staff, equipment,
drugs and supplies ordinarily furnished by a hospital are not
considered physicians' services pursuant to this section. The
status of a physician as a hospital employee shall be determined in
accordance with criteria established under the United States
Internal Revenue Code, and United States Treasury Regulations
issued pursuant thereto.
(B) Any other service provided by a hospital may not be
classified as physicians' services, notwithstanding the fact that
such services are provided under the direct or indirect supervision
of a physician who is not an employee of the hospital or provided
or performed by a physician who holds privileges at the hospital or
who works as an independent contractor for the hospital or for any
other entity for the provision of health care services.
(C) The amendment to this definition in the year 2009 is
intended to clarify the intent of the Legislature as to the
activities that qualify as physicians' services.
(d)
Effective date. -- The tax imposed by this section shall apply to gross receipts received or receivable by providers after
May 31,1993.
NOTE: The purpose of this bill is to clarify the intent of the
Legislature as to the activities that qualify as physicians'
services for purposes of the health care provider tax.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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