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An Act
ENROLLED HOUSE
BILL NO. 2784 By: Caldwell (Trey), Kane, and
Stewart of the House
and
Hall and Haste of the
Senate
An Act relating to public health; amending 63 O.S.
2021, Section 3274, which relates to Oklahoma State
University Medical Authority; relating to Medicaid
supplemental payments; authorizing venture
cooperative for certain training; requiring annual
certification; amending 63 O.S. 2021, Section 3278,
which relates to Oklahoma State University Medical
Authority; providing for certain agreements and
contract; allowing for certain benefits; providing
for certain persons to serve in specific positions;
providing for the use of certain services or goods;
amending Section 17, Chapter 395, O.S.L. 2022 (56
O.S. Supp. 2024, Section 4002.12b), which relates to
Medicaid state plan amendments; allowing for
participation in certain waivers by specific
entities; creating the Emergency Medicine Revolving
Fund; establishing revolving fund characteristics;
declaring funds to be appropriated; providing for
codification; and providing an effective date.
SUBJECT: Public health
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 63 O.S. 2021, Section 3274, is
amended to read as follows:
Section 3274. A. Any hospital or hospitals purchased, leased
or constructed by the Oklahoma State University Medical Authority
shall be operated as general hospitals and shall be licensed by the
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State Commissioner of Health, and shall, as far as possible, meet
the standards, requirements and essentials of the Joint Commission
on Accreditation of Health Care Organizations and the American
Osteopathic Association or, alternatively, meet Medicare
certification by the Center for Medicare and Medicaid Services.
Provided, the State Commissioner of Health may waive any such
standards, requirements and essentials as the Commissioner deems
necessary.
B. Any such hospitals may provide services and receive payments
under Titles XVIII and XIX of the federal Social Security Act, and
may participate in other federal medical programs.
C. Any such hospitals shall be available as teaching and
training hospitals for the colleges of the Oklahoma State University
Center for Health Sciences, for other health and educational
facilities and shall provide indigent patient care.
D. For the purpose of Medicaid supplemental payments, the
Oklahoma State University Medical Trust shall be authorized to enter
into a cooperative venture for the purpose of training students
within an American College of Surgeons Level I Trauma Center or
centers operated by the Oklahoma State University Medical Trust or
an affiliated entity approved by the Trust. The Oklahoma State
University Medical Authority shall annually certify to the Oklahoma
Health Care Authority that the Level I trauma center meets such
standards and requirements with respect to any Medicaid supplemental
payments to be received from the Oklahoma Health Care Authority for
the Level I Trauma Center.
SECTION 2. AMENDATORY 63 O.S. 2021, Section 3278, is
amended to read as follows:
Section 3278. A. The Oklahoma State University Medical
Authority shall have the authority to:
1. Enter into agreements and cooperative ventures with other
health care providers to share services or to provide a benefit to
the hospitals;
2. Make and enter into all contracts and agreements necessary
or incidental to the performance of its duties and execution of its
powers pursuant to the Oklahoma State University Medical Authority
Act;
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3. Join or sponsor organizations or associations intended to
benefit the hospitals;
4. Have members of its governing body or its officers or
administrators serve without pay as directors or officers of any
organization, association, or cooperative ventures authorized
pursuant to the Oklahoma State University Medical Authority Act; and
5. Offer, directly or indirectly, products and services of the
hospitals, any cooperative venture, or organization to the general
public.
B. All agreements and obligations undertaken, as permitted
under this section, by the Oklahoma State University Medical
Authority shall be for a public purpose. In addition to any other
limitations, conditions or restrictions provided by law, the
following conditions shall apply to contractual agreements entered
into pursuant to this section:
1. Private and public funds shall be accounted for separately;
and
2. The state shall not assume any liability for private
entities.
SECTION 3. AMENDATORY Section 17, Chapter 395, O.S.L.
2022 (56 O.S. Supp. 2024, Section 4002.12b), is amended to read as
follows:
Section 4002.12b. A. The Oklahoma Health Care Authority shall
ensure the sustainability of the transformed Medicaid delivery
system.
B. The Authority shall ensure that existing revenue sources
designated for the state share of Medicaid expenses are designed to
maximize federal matching funds for the benefit of providers and the
state.
C. The Authority shall develop a plan, utilizing waivers or
Medicaid state plan amendments as necessary, to preserve or increase
supplemental payments available to providers with existing revenue
sources as provided in the Oklahoma Statutes including, but not
limited to:
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1. Hospitals that participate in the supplemental hospital
offset payment program as provided by Section 3241.3 of Title 63 of
the Oklahoma Statutes;
2. Hospitals in this state that have Level I trauma centers, as
defined by the American College of Surgeons, that provide inpatient
and outpatient services, along with comprehensive pediatric
services, and are owned or, operated by, or in partnership with the
University Hospitals Trust or the Oklahoma State University Medical
Trust, or affiliates or locations of those hospitals designated by
the University Hospitals Trust or the Oklahoma State University
Medical Trust as part of the hospital trauma system. The qualified
entities in the Oklahoma City metropolitan area shall be a hospital
owned, operated, or in partnership with the University Hospitals
Authority or University Hospitals Trust. The qualified entities in
the Tulsa metropolitan area shall be a hospital owned, operated, or
in partnership with the Oklahoma State University Medical Authority,
or Oklahoma State University Medical Trust; and
3. Providers employed by or contracted with, or otherwise a
member of the faculty practice plan of:
a. a public, accredited Oklahoma medical school, or
b. a hospital or health care entity directly or
indirectly owned or operated by the University
Hospitals Trust or the Oklahoma State University
Medical Trust.
D. Subject to approval by the Centers for Medicare and Medicaid
Services, the Authority shall preserve and, to the maximum extent
permissible under federal law, improve existing levels of funding
through directed payments or other mechanisms outside the capitated
rate to contracted entities, including, where applicable, the use of
a directed payment program with an average commercial rate
methodology under the Supplemental Hospital Payment Program Act.
E. On or before January 31, 2023, the Authority shall submit a
report to the Oklahoma Health Care Authority Board, the Chair of the
Appropriations Committee of the Oklahoma State Senate, and the Chair
of the Appropriations and Budget Committee of the Oklahoma House of
Representatives that includes the Authority's plans to continue
supplemental payment programs and implement a managed care directed
payment program for hospital services that complies with the reforms
required by this act. If Medicaid-specific funding cannot be
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maintained as currently implemented and authorized by state law, the
Authority shall propose to the Legislature any modifications
necessary to preserve supplemental payments and managed care
directed payments to prevent budgetary disruptions to providers.
F. The Authority shall submit a report to the Governor, the
President Pro Tempore of the Oklahoma State Senate and the Speaker
of the Oklahoma House of Representatives that includes at a minimum:
1. A description of the selection process of the contracted
entities;
2. Plans for enrollment of Medicaid members in health plans of
contracted entities;
3. Medicaid member network access standards;
4. Performance and quality metrics;
5. Maintenance of existing funding mechanisms described in this
section;
6. A description of the requirements and other provisions
included in capitated contracts; and
7. A full and complete copy of each executed capitated
contract.
G. 1. Each contracted entity shall report to the Authority in
time intervals determined by the Authority and through a process
determined by the Authority all claims data, expenditures, and such
other financial reporting information as may be required by the
Authority.
2. The Authority shall compile and analyze the information
described in paragraph 1 of this subsection and annually submit a
report summarizing such information, devoid of any personally
identifying information, to the President Pro Tempore of the Senate,
the Speaker of the House of Representatives, and the Oklahoma Health
Care Authority Board.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3294 of Title 63, unless there
is created a duplication in numbering, reads as follows:
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There is hereby created in the State Treasury a revolving fund
for the Oklahoma State University Medical Trust to be designated the
"Emergency Medicine Revolving Fund". The fund shall be a continuing
fund, not subject to fiscal year limitations, and shall consist of
all monies received by the Oklahoma State University Medical Trust
from appropriations. All monies accruing to the credit of said fund
are hereby appropriated and may be budgeted and expended by the
Oklahoma State University Medical Trust for the purpose of training
students within an American College of Surgeons Level I Trauma
Center or centers operated by the Oklahoma State University Medical
Trust or an affiliated entity approved by the Trust. Expenditures
from said fund shall be made upon warrants issued by the State
Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
SECTION 5. This act shall become effective September 1, 2025.
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Passed the House of Representatives the 20th day of May, 2025.
Presiding Officer of the House
of Representatives
Passed the Senate the 22nd day of May, 2025.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________