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Room 250 State Capitol
February 7, 2013

Members Present:        Sen. Evan J. Vickers, Chair
                Sen. Allen M. Christensen
                Sen. Daniel W. Thatcher
                Sen. Luz Robles

Members Absent:        Sen. Brian E. Shiozawa

Staff Present:            Mr. Mark D. Andrews, Policy Analyst
                Ms. Nancy A. Skidmore, Committee Secretary

A list of visitors and a copy of handouts are filed with the committee minutes.

Sen. Vickers called the meeting to order at 2:16 p.m.

Approval of Minutes

MOTION:    Sen. Robles moved to approve the minutes of the February 4, 2013 meeting. The         motion passed unanimously.

S.B. 165    Physical Therapy Practice Act Amendments (T. Weiler)    

Rep. Weiler presented the bill to the committee.

MOTION:    Sen. Thatcher moved to pass S.B. 165 out favorably. The bill passed unanimously.         
S.B. 166    Hospital Provider Assessment Amendments (L. Hillyard)

MOTION:    Sen. Christensen moved to amend the bill as follows:

1.    Page 4, Line 111 through Page 5, Line 121 :    

             111          26-36a-203. Calculation of assessment.
             112          [(1) The division shall calculate the inpatient upper payment limit gap for hospitals for
             113      each state fiscal year.]
             114          [(2)] (1) (a) An annual assessment is payable on a quarterly basis for each hospital in
             115      an amount calculated at a uniform assessment rate for each hospital discharge, in accordance
             116      with this section.
             117          (b) The uniform assessment rate shall be determined using the total number of

             118      discharges for assessed hospitals divided into the total nonfederal portion [of the upper
             119      payment limit gap] in an amount

{   equal to the $154 million   }        consistent with 26-36a-205       that is needed to support capitated

             120      rates for accountable care organizations for purposes of hospital services provided to Medicaid
             121      enrollees.

2.    Page 8, Line 242 through Page 9, Line 245 :    

             242          Quarterly assessments imposed by this chapter shall be paid to the division within [10]
             243      15 business days after the [hospital receives its Medicaid inpatient hospital access payment due
             244      for the applicable quarter under Section 26-36a-205 ]
  original invoice       date that appears on the invoice issued by

             245      the division.

3.    Page 9, Lines 247 through 253 :    

             247          26-36a-205. Medicaid hospital adjustment under accountable care organization
             248      rates.
             249          [(1)] To preserve and improve access to [hospitals] hospital services, the division shall
             250      [make Medicaid inpatient hospital access payments to hospitals in accordance with this section,
             251      Section 26-36a-204 , and Subsection 26-36a-203 (7)], for accountable care organization rates
             252      effective on or after April 1, 2013, incorporate an
  annualized       amount equal to $154 million into the

             253      accountable care organization rate structure
  calculation       consistent with the certified actuarial rate range.

4.    Page 11, Line 328 through Page 12, Line 340 :    

             328          Section 7. Section 26-36a-207 is amended to read:
             329          26-36a-207. Restricted Special Revenue Fund -- Creation -- Deposits.
             330          (1) There is created a restricted special revenue fund known as the "Hospital Provider
             331      Assessment Special Revenue Fund."

             332          (2) The fund shall consist of:
             333          (a) the assessments collected by the department under this chapter;
             334          (b) any interest and penalties levied with the administration of this chapter; and
             335          (c) any other funds received as donations for the restricted fund and appropriations
             336      from other sources.
             337          (3) Money in the fund shall be used:
             338          [(a) to make inpatient hospital access payments under Section 26-36a-205 ; and]
             339          (a) to support capitated rates
  consistent with 26-36a-203(1)(d)       for accountable care organizations      {   in an amount equal to

             340      $154 million  
; and

The motion passed unanimously.

Spoke to the bill:    Mr. David Gessel, Utah Hospital Association
            Mr. Tom Brownlee, Advocate for Persons with Disabilities

MOTION:    Sen. Christensen moved to pass S.B. 166, as amended, out favorably. The motion         passed unanimously.

MOTION:    Sen. Christensen moved to place S.B.166, as amended, on the Consent Calendar.         The motion passed unanimously.

H.B. 56    Behavioral Health Care Workforce Amendments (R. Menlove)

Rep. Menlove presented the bill to the committee.

Spoke to bill:    Mr. Santiago Cortez

MOTION:    Sen. Christensen moved to pass H.B. 56 out favorably. The motion passed unanimously.

H.B. 57    Mental and Behavioral Health Amendments (D. Sanpei)

Rep. Sanpei presented the bill to the committee.

Spoke to the bill:    Mr. Brent Kelsey, Assistant Director, Division of Substance Abuse and Mental Health, Department of Human Services
            Mr. Pat Fleming, Director, Salt Lake County Division of Substance Abuse Services

MOTION:    Sen. Robles moved to pass H.B. 57 out favorably. The motion passed

unanimously .

MOTION:     Sen. Thatcher moved to adjourn the meeting. The motion passed unanimously.

The meeting adjourned at 2:43 p.m.

Minutes reported by Nancy Skidmore, Secretary.

Sen. Evan J. Vickers, Committee Chair