HOUSE AMENDMENT Bill No. HB 255

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Senate CHAMBER ACTION 1.... House 2.. 3.. 4 5 ORIGINAL STAMP BELOW 6 7 8 9 10 11 The Committee on Elder & Long-Term Care offered the following: 12 13 Amendment (with title amendment) 14 Remove everything after the enacting clause 15 16 and insert: 17 Section 1. Paragraph (a) of subsection (3) of section 18 400.235, Florida Statutes, is amended to read: 19 400.235 Nursing home quality and licensure status; 20 Gold Seal Program.-- 21 (3)(a)1. The Gold Seal Program shall be developed and 22 implemented by the Governor's Panel on Excellence in Long-Term 23 Care,which shall operate under the authority of the Executive 24 Office of the Governor. For the purposes of staggering the 25 terms of the panel members and notwithstanding the conditions 26 of the original appointments, the terms of all panel members 27 expire September 30, 2002. The panel shall be composed of the 28 following members appointed effective October 1, 2002: 29 a. A consumer advocate for senior citizens, appointed 30 by the Governor to serve a 4-year term. 31 b. Two persons having expertise in the field of 1

1 quality management, service delivery excellence, or public 2 sector accountability, appointed by the Governor to serve a 3 3-year term. 4 c. A consumer advocate for senior citizens, appointed 5 by the Secretary of Elderly Affairs to serve a 4-year term. 6 d. An active member of a nursing facility family and 7 resident care council, appointed by the Secretary of Elderly 8 Affairs to serve a 1-year term. 9 e. A member of the University Consortium on Aging, 10 appointed by the Secretary of Elderly Affairs to serve a 11 2-year term. 12 f. The State Long-Term Care Ombudsman. 13 g. A consumer advocate for senior citizens, appointed 14 by the Florida Life Care Residents Association to serve a 15 3-year term. 16 h. A consumer advocate for senior citizens, appointed 17 by the Secretary of Health to serve a 2-year term. 18 i. A consumer advocate for senior citizens, appointed 19 by the Secretary of Health Care Administration to serve a 20 4-year term. 21 j. The Deputy Secretary for Medicaid of the Agency for 22 Health Care Administration. 23 k. One person appointed by the Florida Association of 24 Homes for the Aging to serve a 1-year term. 25 l. One person appointed by the Florida Health Care 26 Association to serve a 2-year term. 27 m. A member of the Florida Silver Hair Legislature, 28 appointed by the Florida Silver Hair Legislature to serve a 29 1-year term. 30 n. A member of the Florida State Council of Senior 31 Citizens, appointed by the Florida State Council of Senior 2

1 Citizens to serve a 2-year term. 2 3 Thereafter, each panel member, except one appointed under 4 subparagraph f. or subparagraph j., shall be appointed to 5 serve a 4-year term.the panel shall be composed of three 6 persons appointed by the Governor, to include a consumer 7 advocate for senior citizens and two persons with expertise in 8 the fields of quality management, service delivery excellence, 9 or public sector accountability; three persons appointed by 10 the Secretary of Elderly Affairs, to include an active member 11 of a nursing facility family and resident care council and a 12 member of the University Consortium on Aging; the State 13 Long-Term Care Ombudsman; one person appointed by the Florida 14 Life Care Residents Association; one person appointed by the 15 Secretary of Health; two persons appointed by the Secretary of 16 Health Care Administration; one person appointed by the 17 Florida Association of Homes for the Aging; and one person 18 appointed by the Florida Health Care Association.Vacancies on 19 the panel shall be filled in the same manner as the original 20 appointments. A panel member may not be appointed to serve 21 more than two consecutive 4-year terms. 22 2. Panel members shall select the panel chairperson by 23 a majority vote at the panel's first meeting after all panel 24 members have been appointed. 25 3. For purposes of this paragraph, the term "consumer 26 advocate for senior citizens" means a person who: 27 a. Receives no money from the nursing home industry, 28 or from any attorney or law firm that derives 10 percent or 29 more of its revenue representing nursing home facilities or 30 nursing home residents or their representatives in resident 31 rights cases, in the form of wages, contributions, or gifts 3

1 and has no relatives who receive such wages, contributions, or 2 gifts; 3 b. Is not an employee of the Agency for Health Care 4 Administration, the Department of Health, or the Department of 5 Elderly Affairs; and 6 c. Is either a member of an organized senior advocacy 7 group or has had or currently has a relative in a nursing 8 home. 9 Section 2. Section 400.4195, Florida Statutes, is 10 amended to read: 11 400.4195 Rebates prohibited; penalties.-- 12 (1) Except as provided in subsection (2),it is 13 unlawful for any assisted living facility, or any person or 14 agency employed by or contracting with the facility,licensed 15 under this part to contract or promise to pay or receive any 16 commission, bonus, kickback, or rebate or engage in any 17 split-fee arrangement in any form whatsoever with any health 18 care practitioner, health care facility, or other physician, 19 surgeon,organization, agency, or person, either directly or 20 indirectly, for residents referred to an assisted living 21 facility licensed under this part. 22 (2) A facility may employ or contract with persons or 23 agencies to market the facility for a fee or commission based 24 on the volume or value of referrals to the facility, provided 25 that: 26 (a) The facility is not subject to the provisions of 27 42 U.S.C. s. 1320a-7b; 28 (b) Payment to the contract provider is made under a 29 nonexclusive contract; 30 (c) The contract provider represents multiple 31 facilities with different owners; 4

1 (d) The employee or contract provider clearly 2 indicates to all clients prior to referral that he or she 3 represents and is being compensated by the facility, in 4 addition to all other facilities represented by the person or 5 agency; and 6 (e) The employee or contract provider also is not a 7 health care practitioner in a position to make referrals to an 8 assisted living facility or employed by a health care facility 9 or any other organization or agency in a position to make 10 referrals to an assisted living facility or does not have an 11 ownership interest in an assisted living facility. 12 (3) A person or agency independent of and not under 13 contract with a the facility may provide placement or referral 14 services for a fee to individuals seeking assistance in 15 finding a suitable facility; however, any fee paid for 16 placement or referral services must be paid by the individual 17 looking for a facility, not by the facility. 18 (4)(2) A violation of this section shall be considered 19 patient brokering and is punishable as provided in s. 817.505. 20 Section 3. Paragraph (j) is added to subsection (3) of 21 section 817.505, Florida Statutes, to read: 22 817.505 Patient brokering prohibited; exceptions; 23 penalties.-- 24 (3) This section shall not apply to: 25 (a) Any discount, payment, waiver of payment, or 26 payment practice not prohibited by 42 U.S.C. s. 1320a-7b(b) or 27 regulations promulgated thereunder. 28 (b) Any payment, compensation, or financial 29 arrangement within a group practice as defined in s. 456.053, 30 provided such payment, compensation, or arrangement is not to 31 or from persons who are not members of the group practice. 5

1 (c) Payments to a health care provider or health care 2 facility for professional consultation services. 3 (d) Commissions, fees, or other remuneration lawfully 4 paid to insurance agents as provided under the insurance code. 5 (e) Payments by a health insurer who reimburses, 6 provides, offers to provide, or administers health, mental 7 health, or substance abuse goods or services under a health 8 benefit plan. 9 (f) Payments to or by a health care provider or health 10 care facility, or a health care provider network entity, that 11 has contracted with a health insurer, a health care purchasing 12 group, or the Medicare or Medicaid program to provide health, 13 mental health, or substance abuse goods or services under a 14 health benefit plan when such payments are for goods or 15 services under the plan. However, nothing in this section 16 affects whether a health care provider network entity is an 17 insurer required to be licensed under the Florida Insurance 18 Code. 19 (g) Insurance advertising gifts lawfully permitted 20 under s. 626.9541(1)(m). 21 (h) Commissions or fees paid to a nurse registry 22 licensed under s. 400.506 for referring persons providing 23 health care services to clients of the nurse registry. 24 (i) Payments by a health care provider or health care 25 facility to a health, mental health, or substance abuse 26 information service that provides information upon request and 27 without charge to consumers about providers of health care 28 goods or services to enable consumers to select appropriate 29 providers or facilities, provided that such information 30 service: 31 1. Does not attempt through its standard questions for 6

1 solicitation of consumer criteria or through any other means 2 to steer or lead a consumer to select or consider selection of 3 a particular health care provider or health care facility; 4 2. Does not provide or represent itself as providing 5 diagnostic or counseling services or assessments of illness or 6 injury and does not make any promises of cure or guarantees of 7 treatment; 8 3. Does not provide or arrange for transportation of a 9 consumer to or from the location of a health care provider or 10 health care facility; and 11 4. Charges and collects fees from a health care 12 provider or health care facility participating in its services 13 that are set in advance, are consistent with the fair market 14 value for those information services, and are not based on the 15 potential value of a patient or patients to a health care 16 provider or health care facility or of the goods or services 17 provided by the health care provider or health care facility. 18 (j) Services as authorized in s. 400.4195(2). 19 Section 4. This act shall take effect upon becoming a 20 law. 21 22 23 ================ T I T L E A M E N D M E N T =============== 24 And the title is amended as follows: 25 On page 1, line 10 after ";" 26 27 insert: amending s. 817.505, F.S.; providing that payment of 28 referral fees by assisted living facilities under certain 29 circumstances is not considered patient brokering; 30 31 7