S.B. 573
Senate Bill No. 573–Committee on Finance
May 16, 2001
____________
Referred to Committee on Finance
SUMMARY—Transfers office for hospital patients from department of business and industry to office of governor. (BDR 18‑1545)
FISCAL NOTE: Effect on Local Government: No.
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EXPLANATION
– Matter in bolded italics is new; matter
between brackets [omitted material] is material to be omitted.
Green numbers along left margin indicate location on the printed bill (e.g., 5-15 indicates page 5, line 15).
AN ACT relating to the office of the governor; transferring the office for hospital patients from the department of business and industry to the office of the governor; creating the bureau for hospital patients within the office for consumer health assistance in the office of the governor; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
1-1 Section 1. Chapter 223 of NRS is hereby amended by adding thereto a
1-2 new section to read as follows:
1-3 1. The bureau for hospital patients is hereby created within the office
1-4 for consumer health assistance in the office of the governor.
1-5 2. The director:
1-6 (a) Is responsible for the operation of the bureau, which must be
1-7 easily accessible to the clientele of the bureau.
1-8 (b) Shall appoint and supervise such additional employees as are
1-9 necessary to carry out the duties of the bureau. The employees of the
1-10 bureau are in the unclassified service of the state.
1-11 (c) Shall submit a written report quarterly to the governor and the
1-12 legislative committee on health care concerning the activities of the
1-13 bureau, including, without limitation, the number of complaints received
1-14 by the bureau, the number and type of disputes heard, mediated,
1-15 arbitrated or resolved through alternative means of dispute resolution by
1-16 the director and the outcome of the mediation, arbitration or alternative
1-17 means of dispute resolution.
1-18 3. The director may, upon request made by either party, hear,
1-19 mediate, arbitrate or resolve by alternative means of dispute resolution
1-20 disputes between patients and hospitals. The director may decline to hear
1-21 a case that in his opinion is trivial, without merit or beyond the scope of
2-1 his jurisdiction. The director may hear, mediate, arbitrate or resolve
2-2 through alternative means of dispute resolution disputes regarding:
2-3 (a) The accuracy or amount of charges billed to a patient;
2-4 (b) The reasonableness of arrangements made pursuant to
2-5 paragraph (c) of subsection 1 of NRS 439B.260; and
2-6 (c) Such other matters related to the charges for care provided to a
2-7 patient as the director determines appropriate for arbitration, mediation
2-8 or other alternative means of dispute resolution.
2-9 4. The decision of the director is a final decision for the purpose of
2-10 judicial review.
2-11 5. Each hospital, other than federal and state hospitals, with 49 or
2-12 more licensed or approved hospital beds shall pay an annual assessment
2-13 for the support of the bureau. On or before July 15 of each year, the
2-14 director shall notify each hospital of its assessment for the fiscal year.
2-15 Payment of the assessment is due on or before September 15. Late
2-16 payments bear interest at the rate of 1 percent per month or fraction
2-17 thereof.
2-18 6. The total amount assessed pursuant to subsection 5 for a fiscal
2-19 year must be $100,000 adjusted by the percentage change between
2-20 January 1, 1991, and January 1 of the year in which the fees are
2-21 assessed, in the Consumer Price Index (All Items) published by the
2-22 United States Department of Labor.
2-23 7. The total amount assessed must be divided by the total number of
2-24 patient days of care provided in the previous calendar year by the
2-25 hospitals subject to the assessment. For each hospital, the assessment
2-26 must be the result of this calculation multiplied by its number of patient
2-27 days of care for the preceding calendar year.
2-28 Sec. 2. NRS 223.500 is hereby amended to read as follows:
2-29 223.500 As used in NRS 223.500 to 223.580, inclusive, and section 1
2-30 of this act, unless the context otherwise requires, the words and terms
2-31 defined in NRS 223.510, 223.520 and 223.530 have the meanings ascribed
2-32 to them in those sections.
2-33 Sec. 3. NRS 223.540 is hereby amended to read as follows:
2-34 223.540 The provisions of NRS 223.085 do not apply to the provisions
2-35 of NRS 223.500 to 223.580, inclusive[.] , and section 1 of this act.
2-36 Sec. 4. NRS 223.550 is hereby amended to read as follows:
2-37 223.550 1. The office for consumer health assistance is hereby
2-38 established in the office of the governor. The governor shall appoint the
2-39 director. The director must:
2-40 (a) Be:
2-41 (1) A physician, as that term is defined in NRS 0.040;
2-42 (2) A registered nurse, as that term is defined in NRS 632.019;
2-43 (3) An advanced practitioner of nursing, as that term is defined in
2-44 NRS 453.023; or
2-45 (4) A physician’s assistant, as that term is defined in NRS 630.015;
2-46 and
2-47 (b) Have expertise and experience in the field of advocacy.
2-48 2. The cost of carrying out the provisions of NRS 223.500 to 223.580,
2-49 inclusive, and section 1 of this act must be paid as follows:
3-1 (a) That portion of the cost related to providing assistance to consumers
3-2 and injured employees concerning workers’ compensation must be paid
3-3 from the assessments levied pursuant to NRS 232.680.
3-4 (b) That portion of the cost related to the operation of the bureau for
3-5 hospital patients created pursuant to section 1 of this act must be paid
3-6 from the assessments levied pursuant to that section.
3-7 (c) The remaining cost must be provided by direct legislative
3-8 appropriation from the state general fund and be paid out on claims as
3-9 other claims against the state are paid.
3-10 Sec. 5. NRS 223.570 is hereby amended to read as follows:
3-11 223.570 1. The director may:
3-12 (a) Within the limits of available money, employ:
3-13 (1) Such persons in the unclassified service of the state as he
3-14 determines to be necessary to carry out the provisions of NRS [223.500 to
3-15 223.580, inclusive,] 223.560 and 223.580 and this section, including,
3-16 without limitation, a provider of health care, as that term is defined in NRS
3-17 449.581.
3-18 (2) Such additional personnel as may be required to carry out the
3-19 provisions of NRS [223.500 to 223.580, inclusive,] 223.560 and 223.580
3-20 and this section, who must be in the classified service of the
3-21 state.
3-22 A person employed pursuant to the authority set forth in this subsection
3-23 must be qualified by training and experience to perform the duties for
3-24 which the director employs him.
3-25 (b) To the extent not otherwise prohibited by law, obtain such
3-26 information from consumers, injured employees, health care plans and
3-27 policies of industrial insurance as he determines to be necessary to carry
3-28 out the provisions of NRS [223.500 to 223.580, inclusive.] 223.560 and
3-29 223.580 and this section.
3-30 (c) Adopt such regulations as he determines to be necessary to carry out
3-31 the provisions of NRS [223.500 to 223.580, inclusive.] 223.560 and
3-32 223.580 and this section.
3-33 2. The director and his employees shall not have any conflict of
3-34 interest relating to the performance of their duties pursuant to NRS
3-35 [223.500 to 223.580, inclusive.] 223.560 and 223.580 and this section. For
3-36 the purposes of this subsection, a conflict of interest shall be deemed to
3-37 exist if the director or employee, or any person affiliated with the director
3-38 or employee:
3-39 (a) Has direct involvement in the licensing, certification or accreditation
3-40 of a health care facility, insurer or provider of health care;
3-41 (b) Has a direct ownership interest or investment interest in a health
3-42 care facility, insurer or provider of health care;
3-43 (c) Is employed by, or participating in, the management of a health care
3-44 facility, insurer or provider of health care; or
3-45 (d) Receives or has the right to receive, directly or indirectly,
3-46 remuneration pursuant to any arrangement for compensation with a health
3-47 care facility, insurer or provider of health care.
4-1 Sec. 6. NRS 439B.260 is hereby amended to read as follows:
4-2 439B.260 1. A major hospital shall reduce or discount the total billed
4-3 charge by at least 30 percent for hospital services provided to an inpatient
4-4 who:
4-5 (a) Has no insurance or other contractual provision for the payment of
4-6 the charge by a third party;
4-7 (b) Is not eligible for coverage by a state or federal program of public
4-8 assistance that would provide for the payment of the charge; and
4-9 (c) Makes reasonable arrangements within 30 days after discharge to
4-10 pay his hospital bill.
4-11 2. A major hospital or patient who disputes the reasonableness of
4-12 arrangements made pursuant to paragraph (c) of subsection 1 may submit
4-13 the dispute to the [office] bureau for hospital patients for resolution as
4-14 provided in [NRS 232.543.] section 1 of this act.
4-15 3. A major hospital shall reduce or discount the total billed charge of
4-16 its outpatient pharmacy by at least 30 percent to a patient who is eligible
4-17 for Medicare.
4-18 Sec. 7. NRS 232.543 is hereby repealed.
4-19 Sec. 8. This act becomes effective on July 1, 2001.
4-20 TEXT OF REPEALED SECTION
4-21 232.543 Office for hospital patients: Creation within consumer
4-22 affairs division; appointment, classification, powers and duties of
4-23 administrator; annual assessment of hospitals.
4-24 1. There is hereby created within the consumer affairs division of the
4-25 department an office for hospital patients.
4-26 2. The administrator of the office:
4-27 (a) Is responsible for the operation of the office, which must be easily
4-28 accessible to the clientele of the office.
4-29 (b) Must be appointed by the director.
4-30 (c) Is in the unclassified service of the state.
4-31 (d) Shall appoint and supervise such additional employees as are
4-32 necessary to carry out the duties of the office. The employees of the office
4-33 are in the classified service of the state.
4-34 (e) Shall submit a written report quarterly to the department of human
4-35 resources and the legislative committee on health care concerning the
4-36 activities of the office, including, but not limited to, the number of
4-37 complaints received by the office, the number and type of disputes heard,
4-38 mediated, arbitrated or resolved through alternative means of dispute
4-39 resolution by the administrator and the outcome of the mediation,
4-40 arbitration or alternative means of dispute resolution.
4-41 3. The administrator of the office may, upon request made by either
4-42 party, hear, mediate, arbitrate or resolve by alternative means of dispute
4-43 resolution disputes between patients and hospitals. The administrator may
4-44 decline to hear a case which in his opinion is trivial, without merit or
5-1 beyond the scope of his jurisdiction. The administrator may hear, mediate,
5-2 arbitrate or resolve through alternative means of dispute resolution disputes
5-3 regarding:
5-4 (a) The accuracy or amount of charges billed to the patient;
5-5 (b) The reasonableness of arrangements made pursuant to paragraph (c)
5-6 of subsection 1 of NRS 439B.260; and
5-7 (c) Such other matters related to the charges for care provided to a
5-8 patient as the administrator determines appropriate for arbitration,
5-9 mediation or other alternative means of dispute resolution.
5-10 4. The decision of the administrator is a final decision for the purpose
5-11 of judicial review.
5-12 5. Each hospital, other than federal and state hospitals, with 49 or more
5-13 licensed or approved hospital beds shall pay an annual assessment for the
5-14 support of the office. On or before July 15 of each year, the director of the
5-15 department of human resources shall notify each hospital of its assessment
5-16 for the fiscal year. Payment of the assessment is due on or before
5-17 September 15. Late payments bear interest at the rate of 1 percent per
5-18 month or fraction thereof.
5-19 6. The total amount assessed pursuant to subsection 5 for a fiscal year
5-20 must be $100,000 adjusted by the percentage change between January 1,
5-21 1991, and January 1 of the year in which the fees are assessed, in the
5-22 Consumer Price Index (All Items) published by the United States
5-23 Department of Labor.
5-24 7. The total amount assessed must be divided by the total number of
5-25 patient days of care provided in the previous calendar year by the hospitals
5-26 subject to the assessment. For each hospital, the assessment must be the
5-27 result of this calculation multiplied by its number of patient days of care
5-28 for the preceding calendar year.
5-29 H