Bill Summaries: S825 (2015-2016 Session)

Tracking:
  • Summary date: May 17 2016 - View summary

    Senate committee substitute makes the following changes to the 1st edition. Amends GS 131E-214.14 as follows.

    Amends subsection (a1) to require each hospital or ambulatory surgical facility to disclose its financial assistance costs restated at current Medicare rates and in the three ways specified (previously, did not require costs to be restated at current Medicare rates).

    Clarifies that the Department's posting of the disclosed financial assistance costs required by subsection (a1) on the Department's website be in a manner pursuant to subsection (a5) of the statute (was, pursuant to subsection (a4) of the statute).

    Makes a clarifying change to subsection (a5).

    Amends the definition of hospital to exempt from the definition a facility that operates on a for-profit basis and does not meet the definition contained in GS 131E-6(6) (defining nonprofit association and nonprofit corporation as it applies to Article 2 of GS Chapter 131E, the Municipal Hospital Act).


  • Summary date: May 10 2016 - View summary

    Changes the title of GS 131E-214.14 to Disclosure of charity care policy and costs, patient revenues, income and capital assets and improvements (was, Disclosure of charity care policy and costs).

    Amends GS 131E-214.14(a) by changing the subsection title to Disclosure of Financial Assistance Policies (was, Requirements) and dividing existing and amended language into subsubsections. Establishes that each hospital or ambulatory surgical facility (was, a hospital or ambulatory surgical facility required to file Schedule H, federal form 990, under the Code) must disclose its financial assistance policy or a comparable policy in the following ways: (1) provide the public access to its financial assistance policy or comparable policy (was, access to its financial assistance policy and its annual financial assistance costs reported on its Schedule H, federal form 990); (2) submit to the Department in the time, manner, and format required by the Department a website address for access to its financial assistance policy or a comparable policy, where the Department of Health and Human Services (Department) is directed to post all of the information submitted pursuant to subsection (a) on its website in one location and in a manner that is searchable by facility (was, searchable), but if a hospital or ambulatory surgical facility does not have a financial assistance policy or comparable policy, or does not provide the Department with the information required by subsection (a), then the Department must indicate this information on its website; (3) display its financial assistance policy or a comparable policy in a conspicuous place in the organization's place of business.  Makes technical changes.

    Amends subsection (b) by adding to the existing definition of financial assistance costs as meaning the information reported on Schedule H, federal form 990, related to the organization's financial assistance at cost and the amounts reported on that schedule related to the organization's bad debt expense and the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy, that, in addition, financial assistance costs include, for a hospital or ambulatory surgical facility required to file Schedule H, federal form 990, under the Code, the information reported on the hospital's Cost Report (CMS 2552-10), and Schedule S10 related to charity care, if filed by the hospital or ambulatory surgical facility.  In addition, provides that for a hospital or ambulatory surgical facility that is not required to file Schedule H, federal form 990, under the Code, the term means the information the hospital or ambulatory surgical facility would report on Schedule H, federal form 990, under the Code, related to the organization's bad debt expense and the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy or a comparable policy, if it were required to file Schedule H, federal form 990, under the Code; and the information reported on the hospital's or ambulatory surgical facility's Cost Report (CMS 2552-10) and on Schedule S10 related to charity care, if the hospital or ambulatory surgical facility files a Cost Report (CMS 2552-10) and Schedule S10.

    Enacts five new subsections to GS 131E-214.14.  

    New subsection (a1) requires each hospital or ambulatory surgical facility to disclose its financial assistance costs by providing the public with access to its financial assistance costs, submitting annually to the Department in the time, manner, and format required by the Department its financial assistance costs, where the Department is directed to post the information it receives pursuant to subsection (a1) on its website in one location and in the manner required by new subsection (a4) of the statute, but not by posting links to websites, and by displaying its financial assistance costs in a conspicuous place in the organization's place of business.

    Enacts new subsection (a2) to require each hospital or ambulatory surgical facility to disclose its total net patient revenue by providing the public with access to its total net patient revenue, submitting annually to the Department in the time, manner, and format required by the Department its total net patient revenue, where the Department is directed to post the information it receives pursuant to subsection (a2) on its website in one location and in a manner that is searchable by facility, but not by posting links to websites, and displaying its total net patient revenue in a conspicuous place in the organization's place of business.

    Enacts new subsection (a3) to require each hospital or ambulatory surgical facility to disclose its net operating income and total net income by providing the public with access to its net operating income and total net income, submitting annually to the Department in the time, manner, and format required by the Department its net operating income and total net income, where the Department is directed to post the information it receives pursuant to subsection (a3) on its website in one location and in a manner that is searchable by facility, but not by posting links to websites, and displaying its net operating income and total net income in a conspicuous place in the organization's place of business.

    Enacts new subsection (a4) to require each hospital or ambulatory surgical facility to disclose its total spending for capital assets and improvements by providing the public with access to its total spending for capital assets and improvements, submitting annually to the Department in the time, manner, and format required by the Department its total spending for capital assets and improvements, broken down by additions to land, land improvements, buildings, movable equipment, and fixed equipment.  Provides that for each category, the hospital or ambulatory surgical facility must indicate the type and amount of all funding or funding mechanisms used to pay for these capital assets and improvements, such as borrowing, capital leasing, cash reserves, funded depreciation, donations, or current operating surplus.  Directs the Department to post the information it receives pursuant to subsection (a4) on its website in one location and in a manner that is searchable by facility, but not by posting links to websites.

    Enacts new subsection (a5) to direct the Department to calculate and post on its website in one location and in a manner that is searchable by facility, for each hospital or ambulatory surgical facility subject to the disclosure requirements of the statute, the quotient obtained by dividing the facility's total amount of financial assistance costs by the sum of the facility's total net patient revenue as reported in the facility's financial statements.  Provides that this posting by the Department cannot be by posting links to websites.  Establishes that if a hospital or ambulatory surgical facility does not provide the Department with the information required by subsection (a5), then the Department must indicate this information on its website.

    Amends subsection (b), providing for definitions of terms as they apply to the statute, by amending the definition of financial assistance costs and adding new definitions for the following as they apply to the statute: covered officer, hospital, net operating income, total net income, total net patient revenue, and total spending for capital assets and improvements.

    Effective October 1, 2016.

    Appropriates $150,000 from the General Fund to the Department's Division of Health Service Regulation for the 2016-17 fiscal year to be used for information technology costs associated with the Department's responsibilities under GS 131E-214.14, as amended by this act. Effective July 1, 2016.