Minnesota Session Laws - 2005, Regular Session

                            CHAPTER 84-S.F.No. 1378 
                  An act relating to health; modifying medical education 
                  funding provisions; amending Minnesota Statutes 2004, 
                  section 62J.692, subdivisions 3, 4, 7. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Minnesota Statutes 2004, section 62J.692, 
        subdivision 3, is amended to read: 
           Subd. 3.  [APPLICATION PROCESS.] (a) A clinical medical 
        education program conducted in Minnesota by a teaching 
        institution to train physicians, doctor of pharmacy 
        practitioners, dentists, chiropractors, or physician assistants 
        is eligible for funds under subdivision 4 if the program: 
           (1) is funded, in part, by patient care revenues; 
           (2) occurs in patient care settings that face increased 
        financial pressure as a result of competition with nonteaching 
        patient care entities; and 
           (3) emphasizes primary care or specialties that are in 
        undersupply in Minnesota. 
           (b) A clinical medical education program for advanced 
        practice nursing is eligible for funds under subdivision 4 if 
        the program meets the eligibility requirements in paragraph (a), 
        clauses (1) to (3), and is sponsored by the University of 
        Minnesota Academic Health Center, the Mayo Foundation, or 
        institutions that are part of the Minnesota State Colleges and 
        Universities system or members of the Minnesota Private College 
        Council.  
           (c) Applications must be submitted to the commissioner by a 
        sponsoring institution on behalf of an eligible clinical medical 
        education program and must be received by October 31 of each 
        year for distribution in the following year.  An application for 
        funds must contain the following information: 
           (1) the official name and address of the sponsoring 
        institution and the official name and site address of the 
        clinical medical education programs on whose behalf the 
        sponsoring institution is applying; 
           (2) the name, title, and business address of those persons 
        responsible for administering the funds; 
           (3) for each clinical medical education program for which 
        funds are being sought; the type and specialty orientation of 
        trainees in the program; the name, site address, and medical 
        assistance provider number of each training site used in the 
        program; the total number of trainees at each training site; and 
        the total number of eligible trainee FTEs at each site.  Only 
        those training sites that host 0.5 FTE or more eligible trainees 
        for a program may be included in the program's application; and 
           (4) other supporting information the commissioner deems 
        necessary to determine program eligibility based on the criteria 
        in paragraphs (a) and (b) and to ensure the equitable 
        distribution of funds.  
           (d) An application must include the information specified 
        in clauses (1) to (3) for each clinical medical education 
        program on an annual basis for three consecutive years.  After 
        that time, an application must include the information specified 
        in clauses (1) to (3) in the first year of each biennium when 
        requested, at the discretion of the commissioner:  
           (1) audited clinical training costs per trainee for each 
        clinical medical education program when available or estimates 
        of clinical training costs based on audited financial data; 
           (2) a description of current sources of funding for 
        clinical medical education costs, including a description and 
        dollar amount of all state and federal financial support, 
        including Medicare direct and indirect payments; and 
           (3) other revenue received for the purposes of clinical 
        training.  
           (e) An applicant that does not provide information 
        requested by the commissioner shall not be eligible for funds 
        for the current funding cycle. 
           Sec. 2.  Minnesota Statutes 2004, section 62J.692, 
        subdivision 4, is amended to read: 
           Subd. 4.  [DISTRIBUTION OF FUNDS.] (a) The commissioner 
        shall annually distribute 90 percent of available medical 
        education funds to all qualifying applicants based on a 
        distribution formula that reflects a summation of two factors:  
           (1) an education factor, which is determined by the total 
        number of eligible trainee FTEs and the total statewide average 
        costs per trainee, by type of trainee, in each clinical medical 
        education program; and 
           (2) a public program volume factor, which is determined by 
        the total volume of public program revenue received by each 
        training site as a percentage of all public program revenue 
        received by all training sites in the fund pool.  
           In this formula, the education factor is weighted at 67 
        percent and the public program volume factor is weighted at 33 
        percent. 
           Public program revenue for the distribution formula 
        includes revenue from medical assistance, prepaid medical 
        assistance, general assistance medical care, and prepaid general 
        assistance medical care.  Training sites that receive no public 
        program revenue are ineligible for funds available under this 
        paragraph.  Total statewide average costs per trainee for 
        medical residents is based on audited clinical training costs 
        per trainee in primary care clinical medical education programs 
        for medical residents.  Total statewide average costs per 
        trainee for dental residents is based on audited clinical 
        training costs per trainee in clinical medical education 
        programs for dental students.  Total statewide average costs per 
        trainee for pharmacy residents is based on audited clinical 
        training costs per trainee in clinical medical education 
        programs for pharmacy students. 
           (b) The commissioner shall annually distribute ten percent 
        of total available medical education funds to all qualifying 
        applicants based on the percentage received by each applicant 
        under paragraph (a).  These funds are to be used to offset 
        clinical education costs at eligible clinical training sites 
        based on criteria developed by the clinical medical education 
        program.  Applicants may choose to distribute funds allocated 
        under this paragraph based on the distribution formula described 
        in paragraph (a).  Applicants may also choose to distribute 
        funds to clinical training sites with a valid Minnesota medical 
        assistance identification number that host fewer than 0.5 
        eligible trainee FTEs for a clinical medical education program. 
           (c) Funds distributed shall not be used to displace current 
        funding appropriations from federal or state sources.  
           (d) Funds shall be distributed to the sponsoring 
        institutions indicating the amount to be distributed to each of 
        the sponsor's clinical medical education programs based on the 
        criteria in this subdivision and in accordance with the 
        commissioner's approval letter.  Each clinical medical education 
        program must distribute funds allocated under paragraph (a) to 
        the training sites as specified in the commissioner's approval 
        letter.  Sponsoring institutions, which are accredited through 
        an organization recognized by the Department of Education or the 
        Centers for Medicare and Medicaid Services, may contract 
        directly with training sites to provide clinical training.  To 
        ensure the quality of clinical training, those accredited 
        sponsoring institutions must: 
           (1) develop contracts specifying the terms, expectations, 
        and outcomes of the clinical training conducted at sites; and 
           (2) take necessary action if the contract requirements are 
        not met.  Action may include the withholding of payments under 
        this section or the removal of students from the site.  
           (e) Any funds not distributed in accordance with the 
        commissioner's approval letter must be returned to the medical 
        education and research fund within 30 days of receiving notice 
        from the commissioner.  The commissioner shall distribute 
        returned funds to the appropriate training sites in accordance 
        with the commissioner's approval letter. 
           (f) The commissioner shall distribute by June 30 of each 
        year an amount equal to the funds transferred under subdivision 
        10, plus five percent interest to the University of Minnesota 
        Board of Regents for the instructional costs of health 
        professional programs at the Academic Health Center and for 
        interdisciplinary academic initiatives within the Academic 
        Health Center. 
           (g) A maximum of $150,000 of the funds dedicated to the 
        commissioner under section 297F.10, subdivision 1, paragraph 
        (b), clause (2), may be used by the commissioner for 
        administrative expenses associated with implementing this 
        section. 
           Sec. 3.  Minnesota Statutes 2004, section 62J.692, 
        subdivision 7, is amended to read: 
           Subd. 7.  [TRANSFERS FROM THE COMMISSIONER OF HUMAN 
        SERVICES.] (a) The amount transferred according to section 
        256B.69, subdivision 5c, paragraph (a), clause (1), shall be 
        distributed by the commissioner annually to clinical medical 
        education programs that meet the qualifications of subdivision 3 
        based on the formula in subdivision 4, paragraph (a). 
           (b) Fifty percent of the amount transferred according to 
        section 256B.69, subdivision 5c, paragraph (a), clause (2), 
        shall be distributed by the commissioner to the University of 
        Minnesota Board of Regents for the purposes described in 
        sections 137.38 to 137.40.  Of the remaining amount transferred 
        according to section 256B.69, subdivision 5c, paragraph (a), 
        clause (2), 24 percent of the amount shall be distributed by the 
        commissioner to the Hennepin County Medical Center for clinical 
        medical education.  The remaining 26 percent of the amount 
        transferred shall be distributed by the commissioner in 
        accordance with subdivision 7a.  If the federal approval is not 
        obtained for the matching funds under section 256B.69, 
        subdivision 5c, paragraph (a), clause (2), 100 percent of the 
        amount transferred under this paragraph shall be distributed by 
        the commissioner to the University of Minnesota Board of Regents 
        for the purposes described in sections 137.38 to 137.40.  
           (c) The amount transferred according to section 256B.69, 
        subdivision 5c, paragraph (a), clause clauses (3) and (4), shall 
        be distributed by the commissioner upon receipt to the 
        University of Minnesota Board of Regents for the purposes of 
        clinical graduate medical education. 
           Presented to the governor May 20, 2005 
           Signed by the governor May 24, 2005, 2:50 p.m.