§ 9456 - Budget review
§ 9456. Budget review
(a) The commissioner shall conduct reviews of each hospital's proposed budget based on the information provided pursuant to this subchapter, and in accordance with a schedule established by the commissioner.
(b) In conjunction with budget reviews, the commissioner shall:
(1) review utilization information;
(2) consider the goals and recommendations of the health resource allocation plan;
(3) consider the expenditure analysis for the previous year and the proposed expenditure analysis for the year under review;
(4) consider any reports from professional review organizations;
(5) solicit public comment on all aspects of hospital costs and use and on the budgets proposed by individual hospitals;
(6) meet with hospitals to review and discuss hospital budgets for the forthcoming fiscal year;
(7) give public notice of the meetings with hospitals, and invite the public to attend and to comment on the proposed budgets;
(8) consider the extent to which costs incurred by the hospital in connection with services provided to Medicaid beneficiaries are being charged to non-Medicaid health benefit plans and other non-Medicaid payers;
(9) require each hospital to file an analysis that reflects a reduction in net revenue needs from non-Medicaid payers equal to any anticipated increase in Medicaid, Medicare, or another public health care program reimbursements, and to any reduction in bad debt or charity care due to an increase in the number of insured individuals.
(c) Individual hospital budgets established under this section shall:
(1) be consistent with the health resource allocation plan;
(2) take into consideration national, regional, or instate peer group norms, according to indicators, ratios, and statistics established by the commissioner;
(3) promote efficient and economic operation of the hospital;
(4) reflect budget performances for prior years; and
(5) include a finding that the analysis provided in subdivision (b)(9) of this section is a reasonable methodology for reflecting a reduction in net revenues for non-Medicaid payers.
(d)(1) Annually, the commissioner shall establish a budget for each hospital by September 15 followed by a written decision by October 1. Each hospital shall operate within the budget established under this section.
(2)(A) It is the general assembly's intent that hospital cost containment conduct is afforded state action immunity under applicable federal and state antitrust laws, if:
(i) the commissioner requires or authorizes the conduct in any hospital budget established by the commissioner under this section;
(ii) the conduct is in accordance with standards and procedures prescribed by the commissioner; and
(iii) the conduct is actively supervised by the commissioner.
(B) A hospital's violation of the commissioner's standards and procedures shall be subject to enforcement pursuant to subsection (h) of this section.
(e) The commissioner may establish, by rule, a process to define, on an annual basis, criteria for hospitals to meet, such as utilization and inflation benchmarks. The rule shall permit the commissioner to waive one or more of the review processes listed in subsection (b) of this section, but not for more than two years consecutively. Tertiary teaching hospitals shall not be eligible for a waiver.
(f) The commissioner may, upon application, adjust a budget established under this section upon a showing of need based upon exceptional or unforeseen circumstances in accordance with the criteria and processes established under section 9405 of this title.
(g) The commissioner may request, and a hospital shall provide, information determined by the commissioner to be necessary to determine whether the hospital is operating within a budget established under this section.
(h)(1) If a hospital violates a provision of this section, the commissioner may maintain an action in the superior court of the county in which the hospital is located to enjoin, restrain or prevent such violation.
(2) After notice and an opportunity for hearing, the commissioner may impose on a person who knowingly violates a provision of this subchapter, or a rule adopted pursuant to this subchapter, a civil administrative penalty of no more than $40,000.00, or in the case of a continuing violation, a civil administrative penalty of no more than $100,000.00 or one-tenth of one percent of the gross annual revenues of the hospital, whichever is greater. This subdivision shall not apply to violations of subsection (d) of this section caused by exceptional or unforeseen circumstances.
(3)(A) The commissioner shall require the officers and directors of a hospital to file under oath, on a form and in a manner prescribed by the commissioner, any information designated by the commissioner and required pursuant to this subchapter. The authority granted to the commissioner under this subsection is in addition to any other authority granted to the commissioner under law.
(B) A person who knowingly makes a false statement under oath or who knowingly submits false information under oath to the commissioner or to the public oversight commission or to a hearing officer appointed by the commissioner or who knowingly testifies falsely in any proceeding before the commissioner or the public oversight commission or a hearing officer appointed by the commissioner shall be guilty of perjury and punished as provided in section 2901 of Title 13. (Added 1983, No. 93, § 1, eff. May 4, 1983; amended 1987, No. 96, § 19; 1991, No. 160 (Adj. Sess.), § 13, eff. May 11, 1992; 1995, No. 180 (Adj. Sess.), § 35; 1999, No. 81 (Adj. Sess.), § 1, eff. Oct. 1, 2000; 2001, No. 63, § 123b; 2003, No. 53, § 24; 2005, No. 71, § 77f; 2005, No. 191 (Adj. Sess.), § 25; 2007, No. 27, § 9.)