NOTE:
This bill has been prepared for the signatures of the appropriate legislative officers and the Governor.
To determine whether the Governor has signed the bill or taken other action on it, please consult the legislative status sheet, the legislative history, or the Session Laws.
CCONCERNING ONCERNINGHEALTH-CARE HEALTH -CARE PAYMENT PROGRAMSPROGRAMS. .
Be it enacted by the GeneralGeneralAssembly Assemblyofthe of the State ofofColorado: Colorado:
Providers-hospitalreimbursement-hospitalreviewProviders-hospital reimbursement-hospital review program - rules.
(3) (a) (I) In addition to the reimbursement rate process described in subsection (1) of this section and subject totFEDERAL FEDERAL APPROVAL AND adequate funding being made available pursuant to section 25.5-4-402.4, the Colorado healthcare affordability and sustainability enterprise created in section 25.5-4-402.4 (3) shall pay an additional amount based upon performance IN THE HOSPITAL QUALITY INCENTIVE PROGRAM to those ________ Capital letters or bold & italic numbers indicate new material added to existing law;
dashes through words or numbers indicate deletionsdeletionsfrom from existing law andandsuch such material is notnotpart part of the act.
hospitals that provide servicesset vices that improve health-carehcalth-catc outcomes forfut theirthcit patients, includiDELIVER SAFER,MORESAFER, MORE EFFECTIVE CARE THAT IMPROVES PATIENT OUTCOMES AND REDUCES PREVENTABLE UTILIZATION TO REDUCE HEALTHHEALTH-CARE -CARE COSTS.
The state department shall determinedctctminc this amount based upon nationally recognizedtccognizcd performancepctfotmancc measures established in rules1ulcs adoptedadopbythe bythe state board.boatd.
The state quality standardsstandatds must be consistent with federal quality standardsstandatds published by an organization01ganization with expertise in health-carehealth-catc quality, including, but not limited to, the federal centersccntcts forfut medicareandmedicate medicaidand services,mcdicaid set vices, the agency forfut healthcarehcalthcatc researchrcscarch and quality, or the national quality forum.
(II) (A) PRIOR TO IMPLEMENTATION OF THE PROGRAMPROGRAM, ,THETHE COLORADOHEALTHCAREAFFORDABILITYANDSUSTAINABILITYENTERPRISECOLORADOHEALTHCAREAFFORDABILITYAND SUSTAINABILITYENTERPRISE BOARD SHALL APPROVE THE PERCENTAGE OF HOSPITALSHOSPITALS' 'REIMBURSEMENTREIMBURSEMENT IN THE HOSPITAL QUALITY INCENTIVE PROGRAMPROGRAM, , PROGRAM STRUCTURESTRUCTURE, , PERFORMANCE MEASURESMEASURES, ,ANDAND SCORING METHODOLOGYMETHODOLOGY. .
(B) WWHEN HEN APPROVING A PROGRAM PURSUANT TO THIS SUBSECTION (3)(a)THE BOARD SHALL REQUIRE THAT NEW MEASURES REMAIN IN PLACE FOR A DEFINED PERIOD OF TIME NOT TO EXCEED THREE YEARS PRIOR TO MODIFICATIONORREPLACEMENTOFTHENEWMEASURESMODIFICATIONORREPLACEMENTOFTHENEWMEASURES;EXCEPTTHATTHE ;EXCEPTTHATTHEBOARD BOARDMAYAPPROVEMODIFICATIONSORREPLACEMENTSPRIORTOTHEENDMAY OFTHEDEFINEDPERIODOFTIMEIFTHEBOARDISPRESENTEDWITHEVIDENCEAPPROVE MODIFICATIONS ORREPLACEMENTS PRIORTOTHE END OFTHE DEFINEDPERIODOFTIMEIFTHE BOARD ISPRESENTED WITH EVIDENCE THAT THE APPROVED MEASURES ARE NOT MEETING THE GOALS OF THE PROGRAM OR REQUIRE TECHNICAL ADJUSTMENTSADJUSTMENTS. .
NNOTHING OTHING IN THIS SUBSECTION (3)(a)PRECLUDES THE BOARD FROM RENEWING MEASURES THAT MEET THE GOALS OF THE PROGRAM AFTER THE DEFINED PERIOD OF TIME NOT TO EXCEED THREE YEARS HAS EXPIREDEXPIRED. .
(C) AANY NY MODIFICATIONS TO THE HOSPITAL QUALITY INCENTIVE PROGRAM MUST BE APPROVED BY THE BOARD PRIOR TO IMPLEMENTATIONIMPLEMENTATION; ;
EXCEPTTHATCHANGESNECESSARYTOCOMPLYWITHFEDERALLAWMAYBEEXCEPTTHATCHANGES IMPLEMENTEDNECESSARYTOCOMPLY IMMEDIATELYWITH .FEDERALLAW MAY BE IMPLEMENTED IMMEDIATELY.
(III)(Ill) PERFORMANCE MEASURES AND METHODOLOGIES MUST BE BASED ON FACTORS THAT ARE REASONABLY WITHIN HOSPITALSHOSPITALS' 'CONTROLCONTROL, , ALIGNED WITH NATIONALLY RECOGNIZED STANDARDS TO THE MAXIMUM EXTENT PRACTICABLEPRACTICABLE, , AND DESIGNED TO MINIMIZE ADMINISTRATIVE PAGE 2-HOUSE BILL 26-1432 BURDENBURDEN, , INCLUDING BY AVOIDING DUPLICATIVE REPORTING AND LEVERAGING EXISTING DATA SOURCES WHEN POSSIBLEPOSSIBLE. .
THE HOSPITAL QUALITY INCENTIVE PROGRAM SHOULD ALIGN WITH FEDERAL QUALITY STANDARDSSTANDARDS. .
(b) (I) The amount of the payments made pursuant to subsection (3)(a) ofofthis this section must be computedannually.Foreachstatefiscalyear,computed thetotalamountofannually. thepaymentsmustbenomorethansevenpercentofthe total reimbursements made to hospitals in the previous state fiscal year.
(II)For NTWITHSTANDINGSUBSECTIONeach (3)(b)(OFTHISSECTIONstate THEfiscal MAXIMUMyear, PERCENTAGEthe OFtotal PAYMENTSamount MUSTofthe NOTpayments EXCEEDmust SEVENbe PERCENTno OFmore THEthan TOTALsevenpercent REIMBURSEMENTSofthe MADEtotal TOreimbursements HOSPITALSmade INto THEhospitals PREVIOUSin STATEthe FISCALprevious YEARstate UNLESSfiscal ANDyear. UNTIL THE C OLORADO HEALTHCARE AFFORDABILITY AND SUSTAINABILITY ENTERPRISE BOARD FORMALLY APPROVES A HOSPITAL QUALITY INCENTIVE PROGRAM PURSUANT TO SUBSECTION (3)(a)OF THIS SECTION , DEVELOPED WITH INPUT FROM HOSPITAL REPRESENTATIVES WITH CLINICAL EXPERTISE,AFTER WHICH THE MAXIMUMPERCENTAGE OFPAYMENTSMUST NOT EXCEEDNINE PERCENT OF THE TOTAL REIMBURSEMENTS MADE TO HOSPITALS .
(IINOTWITHSTANDING SUBSECTION (3)(b)(1OFTHIS SECTION,THE MAXIMUM PERCENTAGE OF PAYMENTS MUST NOT EXCEED SEVEN PERCENT OF THE TOTAL REIMBURSEMENTS MADE TO HOSPITALS IN THE PREVIOUS STATE FISCAL YEAR UNLESS AND UNTIL THE COLORADO HEALTHCARE AFFORDABILITY AND SUSTAINABILITY ENTERPRISE BOARD FORMALLY APPROVES A HOSPITAL QUALITY INCENTIVE PROGRAM PURSUANT TO SUBSECTION (3)(a)OF THIS SECTION, DEVELOPED WITH INPUT FROM HOSPITAL REPRESENTATIVES WITH CLINICAL EXPERTISE, AFTER WHICH THE MAXIMUM PERCENTAGE OF PAYMENTS MUSTNOT EXCEED NINE PERCENT OF THE TOTAL REIMBURSEMENTS MADE TO HOSPITALS.
In Colorado Revised Statutes, 25.5-4-402.4,25.5-4-402.4amend amend (4)(a)(IV)(E), (4)(c)(I) introductory portion, (5)(b)(VIII), (7)(d)(V), and (7)(e)(VI);
andandrepeal(8) repeal (8) as follows:
Hospitals - healthcare affordability and sustainability hospital provider fee - healthcare affordability and sustainability nursing facility provider fee - healthcare affordability andsustainabilityintermediatecarefacilityfee-receiptofpublicfundsandsustainabilityintermediate carefacilityfee -receiptofpublicfunds - Colorado healthcare affordability and sustainability enterprise - federal waiver - funds created - reports - rules - legislative declaration - definitions - repeal.
(4)(4)Healthcareaffordabilityandsustainability Healthcareaffordabilityandsustainabilityhospitalproviderhospital provider fee.
(a) ForForthe the fiscal year commencing July1,July 1, 2017, and for each fiscal year thereafter, the enterprise is authorized to charge and collect a healthcareaffordabilityandsustainabilityhospitalproviderfee,asdescribedhealthcareaffordabilityandsustainabilityhospitalproviderfee, asdescribed in 42 CFR 433.68 (b), or as otherwise in compliance with 42 CFR 433, on PAGE 3-HOUSE BILL 26-1432 outpatient and inpatient services provided by all licensed or certified hospitals, and receive public funds as described in 42 CFR 433.51, for the purpose ofofobtaining obtainingfederalfederal financial participation under the state medical assistance program as described in this article 4 and articles 5 and 6 ofofthis this title25.5,includingdisproportionatesharehospitalpaymentspursuantto42 U.S.C.
If the amount of hospital provider fee revenue collectedexceedsthefederalnetpatientrevenue-basedlimitontheamountcollectedexceeds the federal netpatientrevenue-based limit onthe amount of such fee revenue that may be collected, requiring repayment to the federal government ofofexcess excess federal matching money received, hospitals that received such excess federal matching money are responsible for repaying the excess federal money and any associated federal penalties to the federal government.
(E) Providing funding for, and in cooperation with the state department and hospitals supporting the implementation of a health-care delivery system reform incentive payments programprngranr as described in subsection (8) ofofthis thissectionTHE sectioTHE HOSPITAL QUALITY INCENTIVE PROGRAM CREATED IN SECTION 25.5-4-402 (3)(a).
(c) (I) In accordance with the redistributive method set forth in 42 CFR 433.68 (e)(1)(e)(l) and (e)(2), the enterprise, acting in concert with or through an agreement with the state department ififrequired required by federal law, mayseekmay seek a waiver from the broad-based hospital provider fee requirement or the uniform hospital provider fee requirement, or both.
In addition, the enterprise,entetptise, acting in concert with(\iit01 orthrnugh through an agreement with the state department if required by federal law, shall seek any federal waiver necessary to fund and, in cooperation with the state department and hospitals, support the implementation of a health-carehealth-eate deliverydeliv cry system reform incentive payments programprngram as described in subsection (8) ofofthis thissection. section.Subjecttofederalapprovalandtominimizethefinancialimpacton certain hospitals, the enterprise may exempt from payment of the hospital provider fee certain types of hospitals, including but not limited to:
(5)Subjectto Healthcareaffordabilityandsustainabilityhospitalproviderfederal approval andto minimizethe financial impact on certain hospitals, the enterprise may exempt from payment ofthe hospital provider fee cashcertain fund.types ofhospitals, including but not limited to:
PAGE(5) 4-HOUSEHealthcareaffordabilityand BILLsustainability 26-1432hospitalprovider (b) All money in the hospital provider fee cash fundfund. is subject to federal matching as authorized under federal law and, subject to annual appropriation bythe general assembly, shall be expended bythe enterprise for the following purposes:
(VIII)PAGE Subject4-HOUSE toBILL any26-1432 necessary(b) federalAll waiversmoney beingin obtained,the hospital provider fee cash fund is subject to providefederal fundingmatching foras aauthorized health-careunder deliveryfederal systemlaw reformand, incentivesubject paymentsprogramasdescribedinsubsection(8)ofthissectionSto UBJECTTOannual FEDERALappropriation APPROVALby ,FORthe THEgeneral HOSPITALassembly, QUALITYshall INCENTIVEbe PROGRAMexpended DESCRIBEDby INthe SECTIONenterprise 25.5-4-402for (3);the following purposes:
(VIII) Subject to any necessary federnl waivers being obtained, to provide funding for a health-care delivery system 1eform incentive payments progrnm as desetibed in subsection(8) ofthis section SUBJECTTO FEDERAL APPROVAL, FOR THE HOSPITAL QUALITY INCENTIVE PROGRAM DESCRIBEDINSECTION25.5-4-402 (3);
(V) To direct and oversee the enterprise in seeking, in concert with or through an agreement with the state department if required by federal law,anyfederalwaivernecessarytofundand,incooperationwiththestatelaw, any federal waiver necessary to fund and, in cooperation with the state department and hospitals, support the implementation of a health-carehealth-eate delivery system reform1efo1m incentive payments programprogrnm as describeddesetibed in subsection (8) ofofthis thissection sectiTHETHEHOSPITALQUALITYINCENTIVEPROGRAM HOSPITALCREATEDINSECTION25.5-4-402 QUALITY INCENTIVE PROGRAM CREATED IN SECTION 25.5-4-402 (3)(a);
(e) OnorbeforeJanuary15,2018,andonorbeforeJanuary15eachOn or beforeJanuary 15, 2018, and on orbefore January 15 each year thereafter, the enterprise board shall submit a written report to the health and human services committee of the senate and the health and humanservicescommitteeofthehouseofrepresentatives,oranysuccessorhuman services committee ofthe house ofrepresentatives, orany successor committees, the joint budget committee of the general assembly, the governor, and the state board.
(A) The efforts made by the enterprise acting in concert with orm through an agreementagteement with the state department ififtequited requiredby byfederalfedernl law, to seek any federalfedetal waiverwaivet necessary to fund and, in cooperationeoopetation with the statedepartmentandhospitals,supporttheimplementationofahealth-carestate department and hospitals, supportthe implementation ofa health-eate delivery system reform1efo1m incentive payments programprogrnm as describeddesetibed in subsection (8) of this section TO IMPLEMENT THE HOSPITAL QUALITY PAGE 5-HOUSE BILL 26-1432 INCENTIVE PROGRAM REQUIRED PURSUANT TO SECTION 25.5-4-402 (3), INCLUDINGINFORMATIONABOUTTHESTRUCTUREOFTHEHOSPITALQUALITY INCENTIVE PROGRAM AND ANY RESULTS ACHIEVED AS A RESULT OF THE HOSPITAL QUALITY INCENTIVE PROGRAMPROGRAM; ;
and (B) The progress actually made by the enterprise, in cooperation with the state department and hospitals, towards the goal of implementing such a program AND THE ENTERPRISE BOARDBOARD'S 'S LEGISLATIVE RECOMMENDATIONS FOR CHANGES TO THE HOSPITAL QUALITY INCENTIVE PROGRAMPROGRAM. .
(8) Health-careIlealth-ca1e deliverydeli\1e1-, system reformIefo11n incentiveincenti\1e payments program-fundingandimplementation.Theenterprise,actinginconcertprog1a111- withfunding or through an agreement with the state department if required by federal law, shall seek any federal waiver necessary to fund and, in cooperation with the state department and hospitals,implementation. support the implementation, no earlier than October 1, 2019, of a health-care delivery system reform incentive payments program that will improve health-care access and outcomes for individuals served by the state department while efficiently utilizing available financial resources.
SuchThe aente1p1ise, acting in conccrt with m through an agreement with the state departinent if required by federal law, shall seek any federal waiver necessary to fund and, in cooperation with the state department and hospitals, support the implementation, no earlier than October 1, 2019, ofa health-care delivery system refunn incentive payments program must,that atwill aimprove minimum:health-care access and outcomes fur individuals setved by the state department while efficiently utilizing available financial resomces.
(a)Such Includea anprogram initialmust, planningat phasea to:mtn1mmn:
(I)(a) AssessInclude needs;an initial planning phase to.
(I) Assess needs, and (II) DevelopDevclop achievable outcome-basedoutco1ne-based metricsmet1ics to be used to measureprogresstowardsprogramgoals,includingthegoalsofhealth-caremeasmeprogtesstowardsprogratngoals, deliverysystemintegration,improvedpatientoutcomes,andmoreefficientincludingthe provisiongoals ofofhealth-care care;delivcry system integration, impO'Vedpatientoutcomes, and more efficient prO'Vision ofcare, and (b) Addiess the fullowing focus ateas:
(I) Care coordination and (b)care Addresstransition themanagement, following(II) focusIntegration areas:ofph)isieal and behavioral health-care set vices, (III) Chronic condition nranagement, (IV) Targeted population health, and PAGE 6-HOUSE BILL 26-1432 (V) Data-diiven accountability and outcome measurement.
(I) Care coordination and care transition management;
(II) Integration of physical and behavioral health-care services;
(III) Chronic condition management;
(IV) Targeted population health;
and PAGE 6-HOUSE BILL 26-1432 (V) Data-driven accountability and outcome measurement.
Safety clause.clause.The general assembly finds, determines, and declares that this act is necessary for the immediate preservation ofthe public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.
TheJ generalu assemblyl finds,i determines,~ and" declares- that- this. act is necessary for the immediate preservation of the public peace, health, or safety or for appropriations for the support and maintenance of the departments of the state and state institutions.
_____________________________ _____________________________ Julie McCluskie James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE PRESIDENT OF OF REPRESENTATIVES THE SENATE ____________________________ ____________________________ Vanessa Reilly Esther van Mourik CHIEF CLERK OF THE HOUSE SECRETARY OF OF REPRESENTATIVES THE SENATE APPROVED________________________________________APPROVED (Dateo \N .--4h ».2.--v C\,+ 1c:~ a rrv't and Time) _________________________________________DO JaredPAGE S.7-HOUSE BILL 26-1432
Polis GOVERNOR OF THE STATE OF COLORADO PAGE 7-HOUSE BILL 26-1432