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        PRIOR PRINTER'S NOS. 2957, 3956               PRINTER'S NO. 4081

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1824 Session of 2007


        INTRODUCED BY J. EVANS, PALLONE, BOYD, WATSON, PICKETT, CUTLER,
           KILLION, MUSTIO, STERN, BAKER, BROOKS, CAPPELLI, CAUSER,
           CLYMER, DENLINGER, HARKINS, KENNEY, MACKERETH, NICKOL, ROSS,
           RUBLEY, SAYLOR, SONNEY, SIPTROTH, READSHAW, MILNE, HELM,
           MENSCH, EVERETT, HENNESSEY, HARHART, McILVAINE SMITH, QUINN
           AND HORNAMAN, DECEMBER 6, 2007

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 26, 2008

                                     AN ACT

     1  Establishing the Community-Based Health Care Provider Assistance
     2     Program in the Department of Health; setting criteria for
     3     eligibility for and authorizing payments to community-based
     4     health care providers to assist in providing medically
     5     necessary care to Pennsylvanians; providing for powers and
     6     duties of the Department of Health; and establishing the
     7     Community-Based Health Care Provider Assistance Fund.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10  Section 1.  Short title.
    11     This act shall be known and may be cited as the Community-
    12  Based Health Care Provider Assistance Act.
    13  Section 2.  Statement of purpose.
    14     The General Assembly recognizes that there exists a great
    15  need for increased access to community-based health care
    16  services throughout this Commonwealth in order:
    17         (1)  to allow for individuals to establish medical homes
    18     and obtain preventive care;

     1         (2)  to reduce the inappropriate use of emergency health
     2     care services by providing effective alternatives to such
     3     services;
     4         (3)  to reduce the burden of uncompensated care and the
     5     needs of the uninsured; and
     6         (4)  to improve maternal and child health.
     7  Therefore, the General Assembly seeks to increase the
     8  availability of such community-based health care services by
     9  assisting in the expansion of community-based health care
    10  providers through the provision of additional resources and
    11  generally promoting their use as a cost-effective supplement to
    12  other providers of health care services.
    13  Section 3.  Definitions.
    14     The following words and phrases when used in this act shall
    15  have the meanings given to them in this section unless the
    16  context clearly indicates otherwise:
    17     "Community-based health care provider."  Any of the following
    18  nonprofit health care centers that provide primary health care
    19  services:
    20         (1)  A federally qualified health center as defined in
    21     section 1905(l)(2)(B) of the Social Security Act (49 Stat.
    22     620, 42 U.S.C. § 1396d(l)(2)(B)).
    23         (2)  A rural health clinic as defined in section
    24     1861(aa)(2) of the Social Security Act (49 Stat. 620, 42
    25     U.S.C. § 1395x(aa)(2)), certified by Medicare.
    26         (3)  A freestanding hospital clinic that serves a
    27     federally designated:
    28             (i)  health care professional shortage area;
    29             (ii)  medically underserved area; or
    30             (iii)  medically underserved population.
    20070H1824B4081                  - 2 -     

     1         (4)  A free or partial-pay health clinic that provides
     2     services by volunteer medical providers.
     3         (5)  An entity meeting the requirements of the Federal
     4     Government to be recognized as a federally qualified health
     5     center look-alike.
     6         (6)  A nurse-managed health clinic that serves a
     7     federally designated:
     8             (i)  health care professional shortage area;
     9             (ii)  medically underserved area; or
    10             (iii)  medically underserved population.
    11     "Department."  The Department of Health of the Commonwealth.
    12     "Fund."  The Community-Based Health Care Provider Assistance
    13  Fund establish under this act.
    14     "Health care provider."  A health care facility or health
    15  care practitioner as defined in the act of July 19, 1979
    16  (P.L.130, No.48), known as the Health Care Facilities Act, a
    17  group practice or a community-based health care provider.
    18     "Medical assistance."  A State program of medical assistance
    19  established under Article IV(f) of the act of June 13, 1967
    20  (P.L.31, No.21), known as the Public Welfare Code.
    21     "Nurse-managed health clinic."  A nurse practice arrangement,
    22  managed by advanced practice nurses, that provides primary care
    23  and is associated with a school, college or department of
    24  nursing, federally qualified health center or an independent
    25  nonprofit health or social services agency.
    26     "Program."  The Community-Based Health Care Provider
    27  Assistance Program established under this act.
    28  Section 4.  Community-Based Health Care Provider Assistance
    29                 Program.
    30     (a)  Establishment.--The Community-Based Health Care Provider
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     1  Assistance Program is established within the department to
     2  provide grants to community-based health care providers to:
     3         (1)  Improve the access to and quality of health care in
     4     this Commonwealth.
     5         (2)  Assist in covering the reasonable costs of providing
     6     health care services, outreach and care management
     7     opportunities to persons eligible to receive health care
     8     services from or through community-based health care
     9     providers.
    10         (3)  Improve access to medically necessary preventive,
    11     curative and palliative physical, dental and behavioral
    12     health care services offered by and through community-based
    13     health care providers, while reducing unnecessary or
    14     duplicative services.
    15         (4)  Reduce the unnecessary utilization of emergency
    16     health care services by supporting the development and
    17     provision of effective alternatives offered by or through
    18     community-based health care providers.
    19         (5)  Improve the availability of quality health care
    20     services offered by or through community-based health care
    21     providers for women who are pregnant or who have recently
    22     given birth and their children.
    23         (6)  Promote the use of chronic care and disease
    24     management protocols offered by or through community-based
    25     health care providers in an effort to optimize both
    26     individual health outcomes and the use of health care
    27     resources.
    28     (b)  Administration.--The program shall be administered by
    29  the department and shall be funded by annual transfers as
    30  provided under this act to the fund to support community-based
    20070H1824B4081                  - 4 -     

     1  health care providers' provision of health care.
     2     (c)  Department responsibilities.--The AFTER SUFFICIENT        <--
     3  MONEYS HAVE BEEN TRANSFERRED OR DEPOSITED INTO THE COMMUNITY-
     4  BASED HEALTH CARE PROVIDER ASSISTANCE FUND, THE department
     5  shall:
     6         (1)  Administer the program.
     7         (2)  Within 90 days of the effective date of this section  <--
     8     SUCH MONEYS BEING SO TRANSFERRED OR DEPOSITED, develop and     <--
     9     provide an application form consistent with this act.
    10         (3)  Determine the eligibility of community-based health
    11     care providers for the assistance provided under this act,
    12     based upon its consideration of community health needs across
    13     this Commonwealth, revenue and cost data and other
    14     information provided by community-based health care providers
    15     and such other information as the department determines to be
    16     appropriate to ascertain the financial condition and needs of
    17     such programs and this Commonwealth.
    18         (4)  Establish a process to allocate funding as provided
    19     under this act, to determine the optimal use of funds and to
    20     reallocate funds if acceptable requests for funding within a
    21     particular category are not received.
    22         (5)  Calculate and make grants to qualified community-
    23     based health care providers from the funds deposited in the
    24     fund for the purposes established under this act pursuant to
    25     this section AND SECTION 5.                                    <--
    26         (6)  Provide an annual report to the chairman and
    27     minority chairman of the Public Health and Welfare Committee
    28     of the Senate and the chairman and minority chairman of the
    29     Health and Human Services Committee of the House of
    30     Representatives describing the operation of the program and
    20070H1824B4081                  - 5 -     

     1     detailing grants made, the names and addresses of the
     2     community-based health care providers receiving grants and
     3     such other information as may be determined by the department
     4     to be necessary or desirable.
     5         (7)  Audit grants awarded under this act to ensure that
     6     funds have been used in accordance with this act and the
     7     terms and standards adopted by the department.
     8         (8)  Provide ongoing assessment of the benefits and costs
     9     of the assistance provided under this act.
    10     (d)  Federal matching funds.--The department shall seek        <--
    11  Federal matching funds under medical assistance, as well as
    12         (9)  SEEK FEDERAL MATCHING FUNDS UNDER MEDICAL             <--
    13     ASSISTANCE, AS WELL AS grants and funding from other sources,
    14     to supplement amounts made available under this act to the
    15     extent permitted by law.
    16     (e) (D)  Limitations on payments by department.--Payments to   <--
    17  community-based health care providers for assistance under this
    18  act shall not exceed the amount of funds available in the fund
    19  for the program and any payment under this act shall not
    20  constitute an entitlement from the Commonwealth or a claim on
    21  any other funds of the Commonwealth.
    22     (f) (E)  Report.--A community-based health care provider that  <--
    23  receives a grant under this act shall report at least annually
    24  to the department, which report shall include a description of:
    25         (1)  The community-based health care provider's efforts
    26     to improve access to and the delivery and management of
    27     health care services.
    28         (2)  The reduction of unnecessary and duplicative health
    29     care services.
    30         (3)  Changes in overall health indicators and in
    20070H1824B4081                  - 6 -     

     1     utilization of health care services among the communities and
     2     individuals served by the community-based health care
     3     providers, with particular emphasis on indicators including,
     4     but not limited to:
     5             (i)  The creation and maintenance of relationships
     6         between health care providers and individuals directed at
     7         establishing a medical home for such individuals and the
     8         provision of preventive and chronic care management
     9         services.
    10             (ii)  Prenatal and postpartum care.
    11             (iii)  The care of newborns and infants.
    12             (iv)  Such other matters as may be specified by the
    13         department.
    14         (4)  An accounting of the expenditure of funds from the
    15     grant and all funds received from other sources.
    16  Section 5.  Grants to community-based health care providers.
    17     (a)  Allocation of funds.--The department shall provide
    18  grants to community-based health care providers on the basis of
    19  the process established under this section.
    20     (b)  Grant award methodology.--
    21         (1)  The department shall develop a methodology to
    22     determine grant amounts to be awarded under this act based
    23     upon an assessment by the department of community need for
    24     the services to be supported by funding available to
    25     community-based health care providers and the needs of
    26     community-based health care providers applying for such
    27     assistance.
    28         (2)  During each of the first three years of the program,
    29     the department shall use its best efforts to make grants as
    30     follows, subject to reallocation as provided under subsection
    20070H1824B4081                  - 7 -     

     1     (f):
     2             (i)  (A)  Fifty percent for expansion of current
     3             community-based health care providers and development
     4             of new community-based health care providers.
     5                 (B)  Amounts provided under this subparagraph, in
     6             addition to funds provided for the costs of expansion
     7             and development, may be used by the department to
     8             make planning grants to community-based health care
     9             providers not to exceed more than $25,000 for any
    10             single community-based health care provider.
    11                 (C)  In making grants under this subparagraph,
    12             the department shall give first priority to
    13             applications that seek to use grant proceeds for
    14             machinery, equipment and reasonably necessary
    15             renovation of existing facilities rather than new
    16             construction. All reasonable actions should be taken
    17             to optimize the use of the funding provided under
    18             this act and avoid unnecessary construction costs.
    19             (ii)  Twenty-five percent for improvements in
    20         prenatal, obstetric, postpartum and newborn care provided
    21         by or through community-based health care providers,
    22         which amount during the initial three-year period shall
    23         include grants for at least one new mobile clinic serving
    24         primarily rural areas and one new mobile clinic serving
    25         primarily urban areas.
    26             (iii)  Twenty-five percent for services intended to
    27         reduce unnecessary emergency room utilization and to
    28         expand capacity and services offered by or through
    29         existing community-based health care providers.
    30     (c)  Program adjustment.--
    20070H1824B4081                  - 8 -     

     1         (1)  The department shall provide a report to the
     2     chairman and minority chairman of the Public Health and
     3     Welfare Committee of the Senate and the chairman and minority
     4     chairman of the Health and Human Services Committee of the
     5     House of Representatives no later than July 1, 2010, that
     6     includes an assessment of the effectiveness of the initial
     7     phase of the program and describes any changes in the
     8     allocation of funds described in subsection (b) that the
     9     department intends to make beginning in the fourth year of
    10     the program.
    11         (2)  The Department shall develop the program changes
    12     anticipated by this subsection and included in the report
    13     required under paragraph (1) after consultation with and
    14     receiving input from community-based health care providers,
    15     consumers and others with an interest in the provision of
    16     community-based health care.
    17         (3)  The department, after determining program changes,
    18     shall make necessary revisions in program requirements and
    19     procedures and provide notice to prospective applicants, such
    20     that grants can be awarded on a timely basis beginning in the
    21     fourth year of the program.
    22     (d)  Additional information.--In addition to the application,
    23  an applicant must provide:
    24         (1)  A feasibility study of the proposed uses of funds to
    25     be provided under the grant.
    26         (2)  A business or financial plan that describes the
    27     long-term sustainability, financial cost to the applicant and
    28     the proposed benefits of the work to be accomplished pursuant
    29     to the grant.
    30         (3)  A strategic plan and schedule for the development
    20070H1824B4081                  - 9 -     

     1     and implementation of the work to be accomplished pursuant to
     2     the grant.
     3     (e)  Limitation.--The total amount of grants under the
     4  program to any single community-based health care provider shall
     5  not exceed $2,000,000 and no grant shall be for a term in excess
     6  of five years.
     7     (f)  Reallocation of funds.--The department shall reallocate
     8  funds among the categories described in subsection (b) if
     9  sufficient requests are not received by the department that
    10  comply with this act or the requirements of the department.
    11  Section 6.  Community-Based Health Care Provider Assistance
    12                 Fund.
    13     (a)  Establishment.--The Community-Based Health Care Provider
    14  Assistance Fund is established in the State Treasury.
    15     (b)  Funding sources.--The fund shall be funded by:
    16         (1)  Transfers or appropriations to the fund.
    17         (2)  Money received from the Federal Government or other
    18     sources.
    19         (3)  Money required to be deposited in the fund pursuant
    20     to other provisions under this act or any other law.
    21         (4)  Investment earnings from the fund, net of investment
    22     costs.
    23     (c)  Nonlapse.--The money in the fund is appropriated on a
    24  continuing basis to the department and shall not lapse at the
    25  end of any fiscal year.
    26  SECTION 7.  FUNDING CONTINGENCY.                                  <--
    27     THE POWERS AND DUTIES OF THE DEPARTMENT UNDER THIS ACT SHALL
    28  BE CONTINGENT ON FUNDS BEING APPROPRIATED OR OTHERWISE MADE
    29  AVAILABLE TO THE DEPARTMENT FOR THE PURPOSES OF THIS ACT.
    30  Section 7 8.  Effective date.                                     <--
    20070H1824B4081                 - 10 -     

     1     This act shall take effect July 1, 2008, or immediately,
     2  whichever is later.



















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