Introduced Version






SENATE BILL No. 510

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DIGEST OF INTRODUCED BILL


        
Citations Affected: IC 12-15-14 ; IC 16-18-2 ; IC 16-29-1.1.

Synopsis: Health facility bed bank. Authorizes a health facility to reduce the number of its comprehensive care beds by "banking" any number of its comprehensive care beds for a period not to exceed four years. Defines "banking" as the termination of the use of a health facility bed as a comprehensive care bed. Requires the office of Medicaid policy and planning to recalculate a nursing facility's Medicaid reimbursement rate if the facility: (1) banks comprehensive care beds; or (2) converts banked beds back to comprehensive care beds. Provides guidelines for recalculating the nursing facility's rate. Provides guidelines for banking comprehensive care beds and for converting banked beds back to comprehensive care beds. Requires the state department of health to modify: (1) the license of a facility that banks comprehensive care beds; and (2) the license of a facility that converts banked beds back to comprehensive care beds. Requires the state department of health to ensure that a facility that has banked beds does not use the beds for comprehensive care purposes. Provides that if a facility fails to convert a banked bed back to a comprehensive care bed within four years of banking the bed, the facility is permanently barred from using the banked bed as a comprehensive care bed. Provides that, with certain exceptions, comprehensive care beds may not be added or constructed. Provides that certain residential beds, unlicensed beds, and acute care beds may not be converted to comprehensive care beds.

Effective: July 1, 2000.





Johnson




    January 11, 2000, read first time and referred to Committee on Health and Provider Services.







Introduced

Second Regular Session 111th General Assembly (2000)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 510



    A BILL FOR AN ACT to amend the Indiana Code concerning health.

Be it enacted by the General Assembly of the State of Indiana:


    SECTION 1. IC 12-15-14-6 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 6. (a) The office shall recalculate the Medicaid reimbursement rate of a nursing facility if the nursing facility:
        (1) banks beds under IC 16-29-1.1-4 ; and
        (2) requests a recalculation in writing.
    (b) In recalculating a nursing facility's reimbursement rate under subsection (a), the office shall use the reduced number of beds to determine all occupancy calculations in the reimbursement rate.
    (c) A nursing facility's new reimbursement rate is effective on the first day of the month after the nursing facility provides notice to the office under IC 16-29-1.1-4.

    SECTION 2. IC 12-15-14-7 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 7. (a) The office shall recalculate the Medicaid reimbursement rate of a nursing facility if the nursing facility:


        (1) converts banked beds back to comprehensive care beds as provided in IC 16-29-1.1-7 ; and
        (2) requests a recalculation in writing.
    (b) In recalculating a nursing facility's reimbursement rate under subsection (a), the office shall use the increased number of beds to determine all occupancy calculations in the reimbursement rate.
    (c) A nursing facility's new reimbursement rate is effective on the first day of the month after the nursing facility provides notice to the office under IC 16-29-1.1-7.

    SECTION 3. IC  16-18-2-33 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 33. (a) "Bank", for purposes of IC 16-29-1.1, has the meaning set forth in IC 16-29-1.1-1.
    (b)
"Bank", for purposes of IC  16-41-12 , has the meaning set forth in IC  16-41-12-2 .
    SECTION 4. IC 16-18-2-67 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 67. (a) "Comprehensive care bed", for purposes of IC 16-29-1 , has the meaning set forth in IC 16-29-1-1.
    (b) "Comprehensive care bed", for purposes of IC 16-29-1.1 , has the meaning set forth in IC 16-29-1.1-2.
     (c) "Comprehensive care bed", for purposes of IC 16-29-2 , has the meaning set forth in IC 16-29-2-1.
    SECTION 5. IC 16-18-2-122 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]: Sec. 122. (a) "Facility", for purposes of IC 16-29-1.1 , has the meaning set forth in IC 16-29-1.1-3.
     (b) "Facility", for purposes of IC 16-41-11 , has the meaning set forth in IC 16-41-11-2.
    SECTION 6. IC 16-29-1.1 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2000]:
    Chapter 1.1. Health Facility Bed Bank
    Sec. 1. As used in this chapter, "bank" means to terminate the use of one (1) or more of a facility's beds as comprehensive care beds as provided in section 4 of this chapter.
    Sec. 2. (a) As used in this chapter, "comprehensive care bed" means a bed that:
        (1) is or may be licensed as a comprehensive care bed under IC 16-28-2 ;
        (2) functions as if the bed were a comprehensive care bed

licensed under IC 16-28-2 ; or
        (3) is subject to IC 16-28 as if the bed were a comprehensive care bed licensed under IC 16-28.
    (b) The term does not include a comprehensive care bed that is used solely to provide specialized services and that is subject to IC 16-29-2.
    Sec. 3. As used in this chapter, "facility" means a health facility or that part of a hospital that provides long term care services and functions as a health facility.
    Sec. 4. (a) A facility may reduce the number of its comprehensive care beds by banking any number of its comprehensive care beds for a period not to exceed four (4) years, as described in section 7(c) of this chapter.
    (b) To bank a comprehensive care bed, the facility must do the following:
        (1) Provide notice to the state department so that the state department can reduce the number of comprehensive care beds available for use by the facility.
        (2) If the facility desires a Medicaid reimbursement rate recalculation, provide notice to the office of Medicaid policy and planning so that the office may recalculate the facility's Medicaid reimbursement rate.
        (3) Not use the bed for comprehensive care purposes for the time that the bed is banked.
    Sec. 5. (a) The state department shall modify the license of a facility that banks beds under section 4 of this chapter by reducing the number of comprehensive care beds for which the facility is licensed.
    (b) The state department shall ensure that a facility that banks beds under section 4 of this chapter does not use the beds for comprehensive care purposes for the time that the bed is banked.
    Sec. 6. (a) A facility may purchase banked beds from another facility.
    (b) Construction that is necessary to add or convert beds purchased under subsection (a) does not violate section 9 of this chapter.
    Sec. 7. (a) A facility that has banked beds under section 4 of this chapter may convert the banked beds back to comprehensive care beds unless the facility has been purchased or leased since the beds were banked.
    (b) To convert a banked bed back to a comprehensive care bed, the facility must do the following:
        (1) Provide notice to the state department to allow the state

department to increase the number of comprehensive care beds available for use by the facility. Notice under this subdivision must be provided not more than four (4) years after the date that notice was provided to the state department under section 4 of this chapter that the facility was banking the bed.
        (2) If the facility desires a Medicaid reimbursement rate recalculation, provide notice to the office of Medicaid policy and planning to allow the office to recalculate the facility's Medicaid reimbursement rate.
    (c) If a facility fails to convert a banked bed back to a comprehensive care bed within four (4) years after notice is given to the state department that the bed is being banked, the facility is permanently barred from using the banked bed as a comprehensive care bed.
    (d) A banked bed that is converted back to a comprehensive care bed under this section must comply with the same life and safety code requirements that were in effect when the facility banked the bed. If a waiver was in effect for the beds, the beds may reflect the conditions of the waiver.
    Sec. 8. (a) The state department shall modify the license of a facility that converts banked beds back to comprehensive care beds under section 7 of this chapter by increasing the number of comprehensive care beds for which the facility is licensed.
    (b) The state department shall allow a facility that converts banked beds back to comprehensive care beds under section 7 of this chapter to use the beds for comprehensive care purposes.
    Sec. 9. (a) This section does not apply to a project to construct or convert a comprehensive care bed under the following conditions:
        (1) The state department and the department of fire and building services approve construction plans for the project before July 1, 2000.
        (2) The project's foundation is constructed in conformity with the approved plans before July 1, 2000, as certified by:
            (A) an independent architect licensed under IC 25-4; or
            (B) an independent professional engineer licensed under IC 25-31.
        (3) Construction work on the project is continuous and in conformity with the approved plans as of July 1, 2000.
    (b) Except as otherwise provided in this chapter, comprehensive care beds may not be added or constructed.
    (c) The following may not be converted to comprehensive care

beds:
        (1) Residential beds licensed under IC 16-28-2.
        (2) Unlicensed beds.
    (d) Notwithstanding IC 16-29-3 , acute care beds may not be converted to comprehensive care beds.
    (e) The Indiana health facilities council may not recommend and the state department may not approve the certification of comprehensive care beds for participation in state or federal reimbursement programs, including programs under Title XVIII or Title XIX of the federal Social Security Act (42 U.S.C. 1395 et seq. or 42 U.S.C. 1396 et seq.).