A bill to amend 1978 PA 368, entitled “Public health code,” by amending sections 2612, 20101, 20145, 20155, 20161, 20164, 20165, 20166, 21551, 21562, and 21563 (MCL 333.2612, 333.20101, 333.20145, 333.20155, 333.20161, 333.20164, 333.20165, 333.20166, 333.21551, 333.21562, and 333.21563), section 2612 as added by 1990 PA 138, sections 20101 and 20166 as amended by 1988 PA 332, sections 20145 and 21551 as amended by 2022 PA 265, sections 20155 and 20164 as amended by 2022 PA 187, section 20161 as amended by 2023 PA 138, section 20165 as amended by 2008 PA 39, and sections 21562 and 21563 as added by 1990 PA 252; and to repeal acts and parts of acts.
The legislative text proposes comprehensive amendments to the Public Health Code, focusing on enhancing rural health services, streamlining construction permit processes for health facilities, and adjusting funding mechanisms for health facility licenses and quality assurance assessments. A key provision is the establishment of a nonprofit corporation in collaboration with Michigan State University and other entities to address rural health issues. This corporation will develop a coordinated rural health program, conduct research, review laws, provide technical assistance, suggest curriculum changes, assist with grant applications, and advocate for rural health concerns. The board of directors will include representatives from various health organizations and government bodies, ensuring broad representation of rural health interests.
The bill simplifies the construction permit process for health facilities by removing the need for a certificate of need for certain projects and establishing a fee structure for permit reviews. It mandates specific information for permit applications and outlines the frequency and nature of inspections for licensed health facilities, emphasizing unannounced visits and the training of nursing home surveyors. Waivers of inspection requirements are allowed under certain conditions, and the confidentiality of accreditation information is mandated.
Funding provisions include specific fees for health facility licenses, with detailed amounts for different types of facilities. The bill addresses the quality assurance assessment for nursing homes and hospitals, stipulating the use of these funds for Medicaid reimbursement payments and setting penalties for non-payment. A sunset clause is included for the quality assurance assessment, ceasing its collection after a specified date unless it remains eligible for federal matching funds.
The legislation introduces a process for hospitals in nonurbanized areas to temporarily delicense beds, with specific conditions and timelines for relicensure or permanent delicensure. Hospitals can apply for temporary delicensure of up to 50% of their licensed beds for five years, with the possibility of an extension if certain conditions are met. The bill also defines criteria for distressed areas and indigent volume, impacting hospitals' eligibility for temporary delicensure.
Additionally, the bill mandates that a complete record of proceedings must be kept and transcribed upon request, with costs borne by the requesting party. The department is empowered to issue, deny, limit, suspend, or revoke licenses based on hearings or defaults, with determinations becoming final after 30 days unless appealed. Procedures for hearings, subpoenas, and testimony are established, with circuit courts authorized to enforce compliance.
The bill repeals parts of the existing Public Health Code related to the certificate of need and makes several technical adjustments to align with the new provisions. It sets forth timelines for compliance and implementation, ensuring systematic integration into the current regulatory framework. The legislation also mandates that rural community hospitals provide specific services, participate in Medicaid, and meet federal Medicare conditions. Rules for the designation and regulation of rural community hospitals are to be promulgated by the department, with differential reimbursement allowed for these hospitals.
Introduced
by
Referred to the Committee on Government Operations
