Health care facilities crisis management.

WORKING DRAFT
2011
STATE OF
WYOMING
11LSO-0530

SENATE FILE
NO.
SF0125

Health

care
facilities
crisis management.

Sponsored by:
Senator(s) Scott,
Jennings
, Landen and Perkins and Representative(s) Brechtel, Gay, Harshman, Harvey, Kroeker, Lockhart, Loucks, Shepperson and Stubson

A BILL

for

AN ACT relating to
pubic health and safety; pr
escribing

the governor's authority and duties if a
health care facility
is determined to be
in financial crisis, as specified;

prescribing the state's and governor's objectives;
providing for transfer of appropriated funds as specified; providing for loans
by
the state loan and investment board;
providing an appropriation;
and providing for an effective date.

Be It Enacted by the Legislature of the State of
Wyoming
:

Section 1.

W.S. 35
‑
2
‑
1001
is
created to read:

ARTICLE 10
HEALTH

CARE

FACILITIES
CRISIS MANAGEMENT

35
‑
2
‑
1001.

Health

care

facility
crisis
; governor's action.

(a)

When the governor learns or is advised by the director of the department of health that a
facility
caring for persons who are recipients of Medicaid or other means tested government programs for the necessary support of the poor is in imminent danger of being unable to meet its current financial obligations and continue its operations, he may, if he believes the clients of the
facility
may not be able to receive adequate care
or the situation may cause a public health emergency:

(i)

Insist on local and community support in helping to resolve the crisis;

(ii)

Loan state funds to the trustees in bankruptcy for the
facility

in crisis
or the debtor in possession in bankruptcy to either:

(A)

Facilitate the orderly liquidation of the
facility
, ensuring proper care for the
facility's
clients during the liquidation process;

(B)

Facilitate the reorganization of the
facility
for its continued operation pursuant to
federal bankruptcy law
.

(i
ii
)

Order Medicaid or other state programs to pay the full cost of any service received from the
facility
including a reasonable allowance for debt service on any loan from the state or other organization.
For Medicaid this payment shall not be in excess of the facility's full cost based on cost reports submitted to the department of health;

(iv)

Order Medicaid or other state programs to pay more promptly for recipient's services.

(b)

For any loan pursuant to subsection (a) of this section, the
governor
shall determine the source of appropriated
funds to be used. The
governor
is specifically authorized to use for this purpose the funds
in the Medicaid contingency reserve

created by
Wyoming Session
Laws 2010, Ch. 39, section 306
or
the health care financing line item of the department of health budget.

(c)

The objectives of the state and the governor in implementing this section shall be:

(i)

To ensure adequate care for all those persons cared for by the facility in crisis and to protect their lives and health;

(ii)

To protect the public health from
the difficulties caused for other health care systems, facilities and institutions if they suddenly have to care for the individuals who have been cared for by the facility in crisis;

(iii)

To ensure the ongoing effective operation of the state's programs for the necessary support of the poor affected by the situation; and

(iv)

To protect the financial interests of the state.

Section
2.

There is appropriated
two million dollars ($2,000,000.00)
from the
general
fund to the

Medicaid contingency reserve created by
Wyoming Session
Laws 2010, Ch. 39, section 306
. This appropriation shall be for the period beginning with the effective date of this act and ending June 30, 201
2
.

This appropriation shall only be expended for the purpose of
this act and for Medicaid operating costs
as provided in this act.
Notwithstanding any other provision of law, this appropriation shall not be transferred or expended for any other purpose and any unexpended, unobligated funds remaining from this appropriation shall revert as provided by law on
June 30, 2012.
This appropriation shall not be included in the
governor's
201
3
-201
4
standard biennial budget request.

Section
3
.

This act is effective immediately upon co
m
pletion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constit
u
tion.

(END)

1
SF0125