LegisLetter

March 12, 2012 Utah Hospital Association

In This Issue

• Thanks to All
• Medicaid Funding
• School of Medicine Funding
• Any Willing Provider
• OIG Legislation
• Hospital Assessment
• HAI Legislation
• Peer Review Legislation
• Medicaid Eligibility
• Other Problematic Legislation
• Licensing Bills Pass
• Other Healthcare Legislation
• Issues of Importance
• Utah HOSPAC
• UHA Is Here to Help
• Be Politically Involved

Thanks To All Who Helped With Another Successful Legislative Session For Utah’s Hospitals and Health Systems

Medicaid Funding Best In Years

Medicaid funding is the best we have seen in years as there were no reductions for hospitals in either inpatient or outpatient funding and the Legislature provided significant new funding with $47 million in new ongoing state funding for Medicaid growth and utilization for fiscal year 2013 and $35 million in one-time new state funding for growth in this fiscal year. UHA let the successful effort to also provide $6 million in state funding for the transition to Medicaid Accountable Care Organizations (“ACO”) as well as an additional $2 million in state funding for ACO administrative costs. This funding will be crucial as we move into the Medicaid waiver as authorized last legislative session with a projected start date of January 1, 2013. UHA will continue to proactively work with the Utah Department of Health, the Legislature, and UHA members to successfully transition to the new Medicaid funding model. Thanks to the good work of all UHA members in this effort.

No Funding Allocated for Additional Students at the University of Utah Medical School

You may recall that a couple of years ago due to the economic crisis, 20 student slots were eliminated from the University of Utah Medical School. UHA worked with a coalition of healthcare organizations, higher education leaders and business leaders to educate the legislature on the need for more medical student funding this session but no new funding was allocated. However, we believe that significant education and progress was made in this area for future success and UHA will continue to work with others to accomplish this goal in the future.

Any Willing Provider Legislation Fails

Any Willing Provider legislation embodied as H.B. 134 – Patient Access Reform was effectively bottled up by UHA and its business allies and has failed for this legislative session.  This bill would have effectively stopped hospitals or other facilities from offering insurers discounts in return for volume. Thanks to the broad coalition of hospitals, health insurers, businesses and business associations that came together to oppose this legislation. It is clear this legislation would increase health care costs at a time when the Legislature is seeking to lower those costs.

UHA Looks Forward to Ongoing Dialogue in Clarifying Powers and Duties of the Medicaid Office of Inspector General

UHA successfully led discussions with a broad group including health care providers, legislators, and executive branch officials to try to come to agreement with regard to a number of issues with the new Medicaid Office of Inspector General. Thanks to all who participated and have pledged to continue to work over the next year to continue the dialogue in a positive way to make this office work more effectively for both the state and providers. A more detailed description of all of the work UHA put in on this issue and the progress that was made has been sent to all UHA members in a recent UHA President’s Report.

Hospital Assessment Legislation Passes With UHA Leadership

S.B. 179 – Hospital Assessment Amendments overwhelmingly passed the Legislature. This legislation included technical language to help in the move to Medicaid ACO’s but did not impact the amount or timing or assessing of the assessment. UHA will be working with all UHA members over the coming year to address any further issues with the hospital assessment as it officially sunsets after the next legislative session so new legislation will be necessary next year to keep the assessment going.

Healthcare Acquired Infections Legislation Passes

H.B. 55 – Healthcare Acquired Infections passed the legislature with UHA’s support. This legislation will increase transparency for the public with respect to certain infections but will not cause additional work or burden for Utah hospitals. UHA has worked with the sponsor for a year to get this legislation to a point that it could be supported. Thanks to Representative Draxler and all others who have supported this important legislation.

Important Peer Review Legislation Passes

Recently, for the first time in Utah, a Judge has ruled that trial attorneys can review peer review records but not use them as evidence in a malpractice case. This is the first time that the states peer review law has been breached in Utah. UHA worked alongside UMA to successfully pass SJR 15, a resolution to amend the Utah court rules to make it clear that these peer review documents are not subject to legal discovery. Kudos to UMA for their strong work and leadership on this important issue!!

Important Medicaid Continuous Eligibility Legislation Passes

H.B. 98– Continuous Eligibility For Medicaid overwhelmingly passed this session. This bill amends the state Medicaid plan and is an important component for moving to Medicaid ACOs. Thanks to Representative Dean Sanpei for sponsoring this legislation and for being a leading voice on healthcare in the legislature.

UHA Successfully Stops Other Problematic Legislation

H.B. 98– UHA worked behind the scenes to stop or amend a number of other legislative proposals that would have been problematic. A bill to amend the state false claims act was stopped early in the session as were other proposed ideas dealing with payment and operational issues as well as health care mandates. This good work is often not recognized as it often does not become public but this is another important way that UHA serves its members and acts as an effective voice for healthcare in Utah.

Licensing Bills Impacting Physicians and Pharmacists Pass

A number of bills have passed dealing particularly with physicians and pharmacists licensing. Other bills impacting nursing education and nurse midwives also passed. A number of licensing bills were also defeated. Please go to the legislative website listed below if you would like more specific details on these bills.

Update on Myriad of Other Healthcare Bills

Legislation supporting the cHIE has passed this legislative session requiring Medicaid recipients and state employees to opt out of the cHIE if they prefer. This legislation should be very helpful in helping the cHIE achieve critical mass in Utah. S.B. 208 – Healthcare Compact has also passed. UHA expressed appropriate concern over this legislation and amended the bill with a sunset date if the compact does not move forward. Legislation changing the hospital lien law failed. Legislation reauthorizing the legislative Healthcare Task Force and changing the law with regard to the Utah Health Exchange has passed.

Issues of Importance for the Coming Year

UHA will be busy in the coming year on a number of legislative issues. As mentioned above, we will be working to reauthorize the hospital assessment law as well as working with legislative leaders and the Medicaid OIG. We will also continue to take the lead as we move through the start up of the Medicaid ACO transition. There will also be a number of other issues such as nursing education we are aware of that we will be working on in the interim. It is possible that any willing provider legislation may return as well as legislation dealing with healthcare cost containment.

Please Join Us At UHA's Annual UTAH HOSPAC Golf Tournament

Please plan to participate in UHA’s Annual UTAH HOSPAC Golf Tournament to be held on Monday, June 18, 2012 at Thanksgiving Point.  This is a great day of golfing fun that allows us to collect funds that will help UHA support legislative candidates who are supportive of hospital issues.  Please call Jackie at 801-486-9915 or email her at Jackie@utahhospitals.org to reserve your foursome.  Our goal is to have every hospital have a foursome at the tournament. Thanks for your support.

UHA Is Here To Help You Keep Informed

For additional legislative information you can go to the legislative website at www.le.state.ut.us where you can read any proposed or passed bills, see committee agendas and reports, learn about your legislators and find lots of other pertinent information. If you have specific questions or concerns, please e-mail Dave Gessel at dave@utahhospitals.org or call him at 801-231-3404.

Be Politically Involved This Year In The Biggest Election Since 1980 – Attend Your Mass Meeting This Week

The upcoming election this fall will be one of the biggest elections in Utah in decades. Many legislators have already announced they will be leaving the legislature and many more will either leave or be defeated this fall. With redistricting, virtually every federal and state office will have an election and you should make your voice heard by actively participating in the political process. Mass meetings will be held this week and the people elected as delegates at those meetings will have a major impact on who is elected in the fall. You can be one of those delegates. Please encourage your employees to be actively involved as well. Both the Republican and Democratic parties are providing information how to be involved. Please go to www.utgop.org or www.utahdemocrats.org for more details. Federal and state elected officials will have a large impact on the future of healthcare in our country and in Utah. Please get involved!!!