Senate Bill No. 199

(By Senator Manchin)

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[Introduced March 1, 1993; referred to the

Committee on Health and Human Resources; and then

to the Committee on the Judiciary.]

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A BILL to amend and reenact section three, article five, chapter sixty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, relating to authorizing the health care cost review authority to promulgate legislative rules relating to the exemption for primary care hospitals.

Be it enacted by the Legislature of West Virginia:

That section three, article five, chapter sixty-four of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted, to read as follows:
ARTICLE 5. AUTHORIZATION FOR DEPARTMENT OF HEALTH AND HUMAN RESOURCES TO PROMULGATE LEGISLATIVE RULES.

§64-5-3. Health care cost review authority.

(a) The legislative rules filed in the state register on the twenty-first day of October, one thousand nine hundred eighty- three, relating to the health care cost review authority (limitation on hospital gross patient revenue), are authorized.
(b) The legislative rules filed in the state register on thenineteenth day of December, one thousand nine hundred eighty- three, relating to the health care cost review authority (freeze on hospital rates and granting temporary rate increases), are authorized.
(c) The legislative rules filed in the state register on the twenty-first day of December, one thousand nine hundred eighty- four, relating to the health care cost review authority (implementation of the utilization review and quality assurance program), are authorized.
(d) The legislative rules filed in the state register on the fifteenth day of August, one thousand nine hundred eighty-four, relating to the health care cost review authority (hospital cost containment methodology), are authorized.
(e) The legislative rules filed in the state register on the twenty-fifth day of November, one thousand nine hundred eighty- five, modified by the West Virginia health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty- eighth day of January, one thousand nine hundred eighty-six, relating to the West Virginia health care cost review authority (interim standards for lithotripsy services), are authorized.
(f) The legislative rules filed in the state register on the third day of September, one thousand nine hundred eighty-seven, modified by the West Virginia health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-seventh day of January, one thousand nine hundred eighty-eight, relatingto the West Virginia health care cost review authority (exemptions from certificate of need review), are authorized.
(g) The legislative rules filed in the state register on the nineteenth day of September, one thousand nine hundred eighty- eight, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-first day of February, one thousand nine hundred eighty-nine, relating to the health care cost review authority (financial disclosure), are authorized.
(h) The legislative rules filed in the state register on the fourteenth day of August, one thousand nine hundred eighty-nine, modified by the West Virginia health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the fifth day of December, one thousand nine hundred eighty-nine, relating to the West Virginia health care cost review authority (expedited review for rate changes), are authorized with the amendments set forth below:
On page 5, Section 4.1, after the words: "affected by the increase." by inserting the following language: "The hospital shall also reconcile any excesses in gross revenue, gross patient revenue, gross inpatient revenue or charges per discharge. Within fifteen days of submission the Authority shall inform the hospital if it accepts the justification for excesses provided by the hospital."
And,
On page 6, section 4.2, after the words "the excess in gross outpatient revenue" by striking the period and inserting the following:
"or if any excesses in the above categories (1 through 4) have been sufficiently justified to the Authority as required in Section 4.1 of this rule."
(i) The legislative rules filed in the state register on the eleventh day of September, one thousand nine hundred eighty-nine, modified by the West Virginia health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the fifth day of December, one thousand nine hundred eighty-nine, relating to the West Virginia health care cost review authority (exemption for conversion of acute care beds to skilled nursing care beds), are authorized.
(j) The legislative rules filed in the state register on the thirtieth day of July, one thousand nine hundred ninety, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-fifth day of September, one thousand nine hundred ninety, relating to the health care cost review authority (exemption for shared services), are authorized.
(k) The legislative rules filed in the state register on the thirty-first day of July, one thousand nine hundred ninety, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-fifth day ofSeptember, one thousand nine hundred ninety, relating to the health care cost review authority (health services offered by health professionals), are authorized.
(l) The legislative rules filed in the state register on the eleventh day of September, one thousand nine hundred ninety, modified by the West Virginia health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-fourth day of January, one thousand nine hundred ninety-one, relating to the West Virginia health care cost review authority (conversion of acute care beds to one hundred skilled nursing care beds), are authorized.
(m) The legislative rules filed in the state register on the twelfth day of August, one thousand nine hundred ninety-one, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the eighth day of November, one thousand nine hundred ninety-one, relating to the health care cost review authority (health services offered by health professionals), are authorized.
(n) The legislative rules filed in the state register on the first day of May, one thousand nine hundred ninety-one, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-second day of July, one thousand nine hundred ninety-one, relating to the health care cost review authority (review for automatic rate changes), are authorized.
(o) The legislative rules filed in the state register on the ninth day of August, one thousand nine hundred ninety-one, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the sixteenth day of October, one thousand nine hundred ninety-one, relating to the health care cost review authority (certificate of need), are authorized.
(p) The legislative rules filed in the state register on the twelfth day of August, one thousand nine hundred ninety-one, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the sixteenth day of October, one thousand nine hundred ninety-one, relating to the health care cost review authority (exemption for shared services), are authorized with the amendments set forth below:
On page six, subsection 4.4, after the words "Charleston newspapers", by striking out the word "and" and inserting in lieu thereof a comma;
On page six, subsection 4.4, after the words "State Register" by adding the words "and a newspaper of general circulation within the area of the facility.";
On page seven, subsection 4.5, after the words "notice in the Saturday Charleston newspapers", by striking out the word "and" and inserting in lieu thereof a comma;
On page seven, subsection 4,5, before the words "the state agency shall within ten", by striking out the comma and inserting the words "and a newspaper of general circulation within the areaof the facility";
And,
On page seven, subsection 4.5, after the words "decision in the Saturday Charleston newspapers", by striking out the remainder of the sentence and inserting in lieu thereof the following: ", the state register and a newspaper of general circulation within the area of the facility.".
(q) The legislative rules filed in the state register on the twenty-seventh day of June, one thousand nine hundred ninety-one, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-third day of September, one thousand nine hundred ninety-one, relating to the health care cost review authority (development of life care retirement centers), are authorized.
(r) The legislative rules filed in the state register on the twenty-seventh day of June, one thousand nine hundred ninety-one, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twenty-third day of September, one thousand nine hundred ninety-one, relating to the health care cost review authority (conversion of acute care beds to skilled nursing care beds), are authorized.
(s) The legislative rules filed in the state register on the ninth day of August, one thousand nine hundred ninety-one, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee andrefiled in the state register on the tenth day of January, one thousand nine hundred ninety-two, relating to the health care cost review authority (financial disclosure), are authorized with the amendment set forth below:
On page eighteen, after subsection 5.3, by adding thereto a new subsection, designated subsection 5.4, to read as follows:
"5.4 A covered facility which is a nonprofit, community- based primary care center providing primary care services without regard to ability to pay which provides the board with a year-end audited financial statement prepared in accordance with generally accepted auditing standards and with governmental auditing standards issued by the comptroller general of the United States shall be considered to have complied with the disclosure requirements of sections 3 and 4 of this rule."
(t) The legislative rules filed in the state register on the eighteenth day of September, one thousand nine hundred ninety-two, modified by the health care cost review authority to meet the objections of the legislative rule-making review committee and refiled in the state register on the twentieth day of November, one thousand nine hundred ninety-two, relating to the health care cost review authority (exemption for primary care hospitals), are authorized.

NOTE: The purpose of this bill is to authorize the Health Care Cost Review Authority to promulgate legislative rules relating to the exemption for primary care hospitals.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.