2015 -- H 5903

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LC001940

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO HEALTH AND SAFETY - LICENSING OF HEALTH CARE FACILITIES

     

     Introduced By: Representatives Palangio, Regunberg, Almeida, Ajello, and Hull

     Date Introduced: March 13, 2015

     Referred To: House Corporations

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 23-17-28 of the General Laws in Chapter 23-17 entitled "Licensing

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of Health Care Facilities" is hereby amended to read as follows:

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     23-17-28. Health care cost containment. – (a) Each health care facility licensed under

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this chapter shall take any action consistent with the continued delivery of quality health care

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services that it deems appropriate to reduce, limit, or contain health care costs and improve the

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efficiency with which health care services are delivered to the citizens of this state. In furtherance

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of these goals, health care facilities licensed under this chapter may, to the extent not inconsistent

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with chapter 15 of this title, enter into agreements with other health care facilities, associations of

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health care facilities, suppliers, third-party payers, and/or agencies or branches of government

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providing, without limitation, for group planning, individual or group expenditure ceilings,

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allocation of services and/or specialties, and group purchasing and/or service sharing.

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     (b) Except as specifically provided in this section, no health care facility licensed as a

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hospital under this chapter, or any affiliate thereof, may compensate an employee who the facility

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is required to list in United States Internal Revenue Service form 990, Part VII-A (or any

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successor provision) at a rate of compensation greater than one hundred and ten percent (110%)

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of the amount determined annually by the director to constitute the northeast regional average

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compensation level for comparable personnel serving in comparable hospitals (and their

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affiliates), with facilities' comparability being determined based on the compared facilities' annual

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collected revenue. Notwithstanding the foregoing, this section shall not apply to any person listed

 

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in United States Internal Revenue Service form 990, Part VII-A who is a Rhode Island licensed

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health care professional, including without limitation, physicians and nurses.

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     SECTION 2. This act shall take effect on October 1, 2015.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO HEALTH AND SAFETY - LICENSING OF HEALTH CARE FACILITIES

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     This act would cap hospital employees' compensation at a rate not exceeding one hundred

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ten percent (110%) of the northeast regional average for comparable personnel at comparable

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hospitals. This act would not apply to physicians, nurses or other licensed health care personnel.

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     This act would take effect on October 1, 2015.

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