H. B. 4569
(By Delegate Susman)
[Introduced
February 19, 2010
; referred to the
Committee on Health and Human Resources then Finance.]
A BILL to amend and reenact §16-29B-19 of the Code of West
Virginia, 1931, as amended, all relating to reviewing the
rates of all stand alone rehabilitation hospitals and
developing and implementing a rate methodology that limits
excess revenue over expenses after taxes.
Be it enacted by the Legislature of West Virginia:
That §16-29B-19 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 29B. HEALTH CARE AUTHORITY.
§16-29B-19. Rate-setting powers generally.
(a) The board shall have power: (1) To initiate reviews and
investigations of hospital rates and establish and approve such
rates; (2) to initiate reviews and investigations of hospital rates
for specific services and the component factors which determine
such rates; (3) to initiate reviews and investigations of hospital budgets and the specific components of such budgets; and (4) to
approve or disapprove hospital rates and budgets taking into
consideration the criteria set forth in section twenty of this
article.
(b) In the interest of promoting the most efficient and
effective use of hospital service, the board may adopt and approve
alternative methods of rate determination. The board may also
adopt methods of charges and payments of an experimental nature
which are in the public interest and consistent with the purpose of
this article.
(c) The board shall examine the need for an alternative to the
current rate-setting method as a means of controlling hospital
costs and submit the findings, recommendations and any proposed
drafts of legislation, if necessary, in a report to the Legislative
Oversight Commission on health and human resources accountability
and the Governor on or before August 1, 1998.
(d) Notwithstanding any provision to the contrary, the board
by July 1, 2010, shall review the rates of all stand alone
rehabilitation hospitals and develop and implement a rate
methodology that limits excess revenue over expenses after taxes.
For purposes of this subsection the calculation of excess revenue
over expenses shall include any amounts paid to the parent
corporation for services rendered. After July 1, 2010, if a stand
alone rehabilitation hospital is found to have excess revenues over
expenses in excess of ten percent after the payment of taxes the facility shall immediately be ordered by the board to reduce its
rates to meet the ten percent level. After July 1, 2012, if a
stand alone rehabilitation hospital is found to have excess
revenues over expenses in excess of five percent after the payment
of taxes the facility shall immediately be ordered by the board to
reduce its rates to meet the five percent level. Nothing in this
subsection shall be construed to be applicable to acute care
hospitals or nursing homes that may provide rehabilitation services
as part of their service delivery.
NOTE: The purpose of this bill is to review the rates of all
stand alone rehabilitation hospitals and develop and implement a
rate methodology that limits excess revenue over expenses after
taxes.
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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