2013 -- S 0280 SUBSTITUTE A

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LC00935/SUB A

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2013

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A N A C T

RELATING TO TAXATION - FACILITY AND IMAGING SURCHARGES

     Introduced By: Senators Gallo, Lynch, Ottiano, and Satchell

     Date Introduced: February 12, 2013

     Referred To: Senate Health & Human Services

It is enacted by the General Assembly as follows:

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     SECTION 1. Sections 44-64-2 and 44-64-3 of the General Laws in Chapter 44-64

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entitled "The Outpatient Health Care Facility Surcharge" are hereby amended to read as follows:

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     44-64-2. Definitions. -- The following words and phrases as used in this chapter have the

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following meaning:

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      (1) "Administrator" means the tax administrator within the department of revenue.

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      (2) "Gross patient revenue" means the gross amount received on a cash basis by the

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provider from all patient care and other gross operating income. However, charitable

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contributions, fund raising proceeds, and endowment support shall not be considered "gross

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patient revenue."

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      (3) "Net patient services revenue" means the charges amount received related to patient

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care professional services less (i) charges attributable to charity care, (ii) bad debt expenses, and

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(iii) contractual allowances, and (iv) charges attributable to medical supplies used within the

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outpatient health care facility.

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      (4) "Person" means any individual, corporation, company, association, partnership, joint

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stock association, and the legal successor thereof.

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      (5) "Provider" means a licensed facility or operator, including a government facility or

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operator, subject to a surcharge under this chapter.

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      (6) "Surcharge" means the assessment that is imposed upon net patient revenue pursuant

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to this chapter.

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     44-64-3. Imposition of surcharge -- Outpatient health care facility. -- (a) For the

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purposes of this section, an "outpatient health care facility" means a person or governmental unit

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that is licensed to establish, maintain, and operate a free-standing ambulatory surgery center or a

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physician ambulatory surgery center or a podiatry ambulatory surgery center, in accordance with

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chapter 17 of title 23.

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      (b) A surcharge at a rate of two percent (2.0%) shall be imposed upon the net patient

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services revenue received each month by every outpatient health care facility as follows:

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     (1) At a rate of one and a half percent (1 ½%) of the net patient services revenue for the

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period July 1, 2013 through June 30, 2014; and

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     (2) At a rate of one percent (1%) of the net patient services revenue after July 1, 2014.

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Every provider shall pay the monthly surcharge no later than the twenty-fifth (25th) day of the

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month following the month that the gross patient revenue is received. This surcharge shall be in

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addition to any other authorized fees that have been assessed upon outpatient facilities.

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     SECTION 2. Sections 44-65-2 and 44-65-3 of the General Laws in Chapter 44-65

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entitled "Imaging Services Surcharge" are hereby amended to read as follows:

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     44-65-2. Definitions. -- The following words and phrases as used in this chapter have the

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following meaning:

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      (1) "Administrator" means the tax administrator within the department of administration.

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      (2) "Gross patient revenue" means the gross amount received on a cash basis by a

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provider from all income derived from the provision of imaging services to patients. Charitable

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contributions, fundraising proceeds, and endowment support shall not be considered as "gross

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patient revenue."

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      (3) "Imaging services" means and includes all the professional and technical components

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of x-ray, ultrasound (including echocardiography), computed tomography (CT), magnetic

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resonance imaging (MRI), positron emission tomography (PET), positron emission

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tomography/computed tomography (PET/CT), general nuclear medicine, and bone densitometry

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procedures.

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      (4) "Net patient services revenue" means the charges amount received related to patient

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care professional services less (i) charges attributable to charity care, (ii) bad debt expenses, and

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(iii) contractual allowances, and (iv) charges attributable to medical supplies, including contrast

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media and radiopharmaceuticals, used for imaging services.

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      (5) "Person" means any individual, corporation, company, association, partnership, joint

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stock association, and the legal successor thereof.

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      (6) "Provider" means any person who furnishes imaging services for the purposes of

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patient diagnosis, assessment or treatment, excluding any person licensed as a hospital or a

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rehabilitation hospital center or a not-for-profit organization ambulatory care facility, pursuant to

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the provisions of chapter 17 of title 23 of the Rhode Island general laws, as amended or not

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performing more than two hundred (200) radiological procedures per month. Further, the term

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"provider" shall not apply to any person subject to the provisions of chapter 64 of title 44 or to

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any person licensed in the state of Rhode Island as a dentist or a podiatrist or a veterinarian.

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      (7) "Surcharge" means the assessment imposed upon net patient revenue pursuant to this

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chapter.

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     44-65-3. Imposition of surcharge. -- A surcharge shall be imposed upon the net patient

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revenue received by every provider in each month at a rate of two percent (2.0%) as follows:

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     (1) At a rate of one and a half percent (1 ½%) of the net patient services revenue for the

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period July 1, 2013 through June 30, 2014; and

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     (2) At a rate of one percent (1%) of the net patient services revenue after July 1, 2014.

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Every provider shall pay the monthly surcharge no later than the twenty-fifty (25th) day of each

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month following the month of receipt of net patient services revenue. This surcharge shall be in

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addition to any other fees or assessments upon the provider allowable by law.

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     SECTION 3. This act shall take effect on July 1, 2013.

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LC00935/SUB A

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO TAXATION - FACILITY AND IMAGING SURCHARGES

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     This act would exempt medical supplies from the outpatient health care facility surcharge

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and the imaging services surcharge and would reduce the surcharge from two percent (2%) to one

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percent (1%) over two (2) years following the act's effective date.

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     This act would take effect on July 1, 2013.

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LC00935/SUB A

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