Text of 2003 MERC Legislation
This page contains the revisions to the MERC statute(s) enacted by the 2003 legislature. These changes will be effective July 1, 2003.
KEY:
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stricken= old language to be removed - underscored = new language to be added
Minnesota Statutes 62J.692 Medical Education
445.11 Subd. 3. [APPLICATION PROCESS.] (a) A clinical medical
445.12 education program conducted in Minnesota by a teaching
445.13 institution to train physicians, doctor of pharmacy
445.14 practitioners, dentists, chiropractors, or physician assistants
445.15 is eligible for funds under subdivision 4 if the program:
445.16 (1) is funded, in part, by patient care revenues;
445.17 (2) occurs in patient care settings that face increased
445.18 financial pressure as a result of competition with nonteaching
445.19 patient care entities; and
445.20 (3) emphasizes primary care or specialties that are in
445.21 undersupply in Minnesota.
445.22 (b) A clinical medical education program for advanced
445.23 practice nursing is eligible for funds under subdivision 4 if
445.24 the program meets the eligibility requirements in paragraph (a),
445.25 clauses (1) to (3), and is sponsored by the University of
445.26 Minnesota Academic Health Center, the Mayo Foundation, or
445.27 institutions that are part of the Minnesota state colleges and
445.28 universities system or members of the Minnesota private college
445.29 council.
445.30 (c) Applications must be submitted to the commissioner by a
445.31 sponsoring institution on behalf of an eligible clinical medical
445.32 education program and must be received by October 31 of each
445.33 year for distribution in the following year. An application for
445.34 funds must contain the following information:
445.35 (1) the official name and address of the sponsoring
445.36 institution and the official name and site address of the
446.1 clinical medical education programs on whose behalf the
446.2 sponsoring institution is applying;
446.3 (2) the name, title, and business address of those persons
446.4 responsible for administering the funds;
446.5 (3) for each clinical medical education program for which
446.6 funds are being sought; the type and specialty orientation of
446.7 trainees in the program; the name, site address, and medical
446.8 assistance provider number of each training site used in the
446.9 program; the total number of trainees at each training site; and
446.10 the total number of eligible trainee FTEs at each site. Only
446.11 those training sites that host 0.5 FTE or more eligible trainees
446.12 for a program may be included in the program's application; and
446.13 (4) other supporting information the commissioner deems
446.14 necessary to determine program eligibility based on the criteria
446.15 in paragraph paragraphs (a) and (b) and to ensure the equitable
446.16 distribution of funds.
446.17 (c) (d) An application must include the information
446.18 specified in clauses (1) to (3) for each clinical medical
446.19 education program on an annual basis for three consecutive
446.20 years. After that time, an application must include the
446.21 information specified in clauses (1) to (3) in the first year of
446.22 each biennium:
446.23 (1) audited clinical training costs per trainee for each
446.24 clinical medical education program when available or estimates
446.25 of clinical training costs based on audited financial data;
446.26 (2) a description of current sources of funding for
446.27 clinical medical education costs, including a description and
446.28 dollar amount of all state and federal financial support,
446.29 including Medicare direct and indirect payments; and
446.30 (3) other revenue received for the purposes of clinical
446.31 training.
446.32 (d) (e) An applicant that does not provide information
446.33 requested by the commissioner shall not be eligible for funds
446.34 for the current funding cycle.
447.1 Subd. 4. [DISTRIBUTION OF FUNDS.] (a) The commissioner
447.2 shall annually distribute 90 percent of available medical
447.3 education funds to all qualifying applicants based on the
447.4 following criteria a distribution formula that reflects a
447.5 summation of two factors:
447.6 (1) total medical education funds available for
447.7 distribution; an education factor, which is determined by the
447.8 total number of eligible trainee FTEs and the total statewide
447.9 average costs per trainee, by type of trainee, in each clinical
447.10 medical education program; and
447.11 (2) total number of eligible trainee FTEs in each clinical
447.12 medical education program; and
447.13 (3) the statewide average cost per trainee as determined by
447.14 the application information provided in the first year of the
447.15 biennium, by type of trainee, in each clinical medical education
447.16 program. a public program volume factor, which is determined by
447.17 the total volume of public program revenue received by each
447.18 training site as a percentage of all public program revenue
447.19 received by all training sites in the fund pool.
447.20 In this formula, the education factor is weighted at 67
447.21 percent and the public program volume factor is weighted at 33
447.22 percent.
447.23 Public program revenue for the distribution formula
447.24 includes revenue from medical assistance, prepaid medical
447.25 assistance, general assistance medical care, and prepaid general
447.26 assistance medical care. Training sites that receive no public
447.27 program revenue are ineligible for funds available under this
447.28 paragraph. Total statewide average costs per trainee for
447.29 medical residents is based on audited clinical training costs
447.30 per trainee in primary care clinical medical education programs
447.31 for medical residents. Total statewide average costs per
447.32 trainee for dental residents is based on audited clinical
447.33 training costs per trainee in clinical medical education
447.34 programs for dental students. Total statewide average costs per
447.35 trainee for pharmacy residents is based on audited clinical
447.36 training costs per trainee in clinical medical education
448.1 programs for pharmacy students.
448.2 (b) The commissioner shall annually distribute ten percent
448.3 of total available medical education funds to all qualifying
448.4 applicants based on the percentage received by each applicant
448.5 under paragraph (a). These funds are to be used to offset
448.6 clinical education costs at eligible clinical training sites
448.7 based on criteria developed by the clinical medical education
448.8 program. Applicants may choose to distribute funds allocated
448.9 under this paragraph based on the distribution formula described
448.10 in paragraph (a). Applicants may also choose to distribute
448.11 funds to clinical training sites with a valid Minnesota medical
448.12 assistance identification number that host fewer than 0.5
448.13 eligible trainee FTE's for a clinical medical education program.
448.14 (c) Funds distributed shall not be used to displace current
448.15 funding appropriations from federal or state sources.
448.16 (c) (d) Funds shall be distributed to the sponsoring
448.17 institutions indicating the amount to be distributed to each of
448.18 the sponsor's clinical medical education programs based on the
448.19 criteria in this subdivision and in accordance with the
448.20 commissioner's approval letter. Each clinical medical education
448.21 program must distribute funds allocated under paragraph (a) to
448.22 the training sites as specified in the commissioner's approval
448.23 letter. Sponsoring institutions, which are accredited through
448.24 an organization recognized by the department of education or the
448.25 Centers for Medicare and Medicaid Services, may contract
448.26 directly with training sites to provide clinical training. To
448.27 ensure the quality of clinical training, those accredited
448.28 sponsoring institutions must:
448.29 (1) develop contracts specifying the terms, expectations,
448.30 and outcomes of the clinical training conducted at sites; and
448.31 (2) take necessary action if the contract requirements are
448.32 not met. Action may include the withholding of payments under
448.33 this section or the removal of students from the site.
448.34 (d) (e) Any funds not distributed in accordance with the
448.35 commissioner's approval letter must be returned to the medical
448.36 education and research fund within 30 days of receiving notice
449.1 from the commissioner. The commissioner shall distribute
449.2 returned funds to the appropriate training sites in accordance
449.3 with the commissioner's approval letter.
449.4 (e) The commissioner shall distribute by June 30 of each
449.5 year an amount equal to the funds transferred under section
449.6 62J.694, subdivision 2a, paragraph (b), plus five percent
449.7 interest to the University of Minnesota board of regents for the
449.8 costs of the academic health center as specified under section
449.9 62J.694, subdivision 2a, paragraph (a).
449.12 Subd. 5. [REPORT.] (a) Sponsoring institutions receiving
449.13 funds under this section must sign and submit a medical
449.14 education grant verification report (GVR) to verify that the
449.15 correct grant amount was forwarded to each eligible training
449.16 site. If the sponsoring institution fails to submit the GVR by
449.17 the stated deadline, or to request and meet the deadline for an
449.18 extension, the sponsoring institution is required to return the
449.19 full amount of funds received to the commissioner within 30 days
449.20 of receiving notice from the commissioner. The commissioner
449.21 shall distribute returned funds to the appropriate training
449.22 sites in accordance with the commissioner's approval letter.
449.23 (b) The reports must provide verification of the
449.24 distribution of the funds and must include:
449.25 (1) the total number of eligible trainee FTEs in each
449.26 clinical medical education program;
449.27 (2) the name of each funded program and, for each program,
449.28 the dollar amount distributed to each training site;
449.29 (3) documentation of any discrepancies between the initial
449.30 grant distribution notice included in the commissioner's
449.31 approval letter and the actual distribution;
449.32 (4) a statement by the sponsoring institution describing
449.33 the distribution of funds allocated under subdivision 4,
449.34 paragraph (b), including information on which clinical training
449.35 sites received funding and the rationale used for determining
449.36 funding priorities;
450.1 (5) a statement by the sponsoring institution stating that
450.2 the completed grant verification report is valid and accurate;
450.3 and
450.4 (5) (6) other information the commissioner, with advice
450.5 from the advisory committee, deems appropriate to evaluate the
450.6 effectiveness of the use of funds for medical education.
450.7 (c) By February 15 of each year, the commissioner, with
450.8 advice from the advisory committee, shall provide an annual
450.9 summary report to the legislature on the implementation of this
450.10 section.
450.13 Subd. 7. [TRANSFERS FROM THE COMMISSIONER OF HUMAN
450.14 SERVICES.] (a) The amount transferred according to section
450.15 256B.69, subdivision 5c, paragraph (a), clause (1), shall be
450.16 distributed by the commissioner annually to clinical medical
450.17 education programs that meet the qualifications of subdivision 3
450.18 based on a distribution formula that reflects a summation of two
450.19 factors: the formula in subdivision 4, paragraph (a).
450.20 (1) an education factor, which is determined by the total
450.21 number of eligible trainee FTEs and the total statewide average
450.22 costs per trainee, by type of trainee, in each clinical medical
450.23 education program; and
450.24 (2) a public program volume factor, which is determined by
450.25 the total volume of public program revenue received by each
450.26 training site as a percentage of all public program revenue
450.27 received by all training sites in the fund pool created under
450.28 this subdivision.
450.29 In this formula, the education factor shall be weighted at
450.30 50 percent and the public program volume factor shall be
450.31 weighted at 50 percent.
450.32 Public program revenue for the distribution formula shall
450.33 include revenue from medical assistance, prepaid medical
450.34 assistance, general assistance medical care, and prepaid general
450.35 assistance medical care. Training sites that receive no public
450.36 program revenue shall be ineligible for funds available under
451.1 this paragraph.
451.2 (b) Fifty percent of the amount transferred according to
451.3 section 256B.69, subdivision 5c, paragraph (a), clause (2),
451.4 shall be distributed by the commissioner to the University of
451.5 Minnesota board of regents for the purposes described in
451.6 sections 137.38 to 137.40. Of the remaining amount transferred
451.7 according to section 256B.69, subdivision 5c, paragraph (a),
451.8 clause (2), 24 percent of the amount shall be distributed by the
451.9 commissioner to the Hennepin County Medical Center for clinical
451.10 medical education. The remaining 26 percent of the amount
451.11 transferred shall be distributed by the commissioner in
451.12 accordance with subdivision 7a. If the federal approval is not
451.13 obtained for the matching funds under section 256B.69,
451.14 subdivision 5c, paragraph (a), clause (2), 100 percent of the
451.15 amount transferred under this paragraph shall be distributed by
451.16 the commissioner to the University of Minnesota board of regents
451.17 for the purposes described in sections 137.38 to 137.40.
451.18 (c) The amount transferred according to section 256B.69,
451.19 subdivision 5c, paragraph (a), clause (3), shall be distributed
451.20 by the commissioner upon receipt to the University of Minnesota
451.21 board of regents for the purposes of clinical graduate medical
451.22 education.
Minnesota Statutes 62J.694 Medical Education Endowment Fund
451.25 Subd. 5. [EFFECTIVE DATE.] This section is only in effect
451.26 if there are funds available in the medical education endowment
451.27 fund.
Minnesota Statutes 256B.69 PMAP Carveout
Sec. 60. Minnesota Statutes 2002, section 256B.69, 675.11 subdivision 5c, is amended to read:
675.12 Subd. 5c. [MEDICAL EDUCATION AND RESEARCH FUND.] (a)
675.13 Except as provided in paragraph (c), the commissioner of human
675.14 services shall transfer each year to the medical education and
675.15 research fund established under section 62J.692, the following:
675.16 (1) an amount equal to the reduction in the prepaid medical
675.17 assistance and prepaid general assistance medical care payments
675.18 as specified in this clause. Until January 1, 2002, the county
675.19 medical assistance and general assistance medical care
675.20 capitation base rate prior to plan specific adjustments and
675.21 after the regional rate adjustments under section 256B.69,
675.22 subdivision 5b, is reduced 6.3 percent for Hennepin county, two
675.23 percent for the remaining metropolitan counties, and no
675.24 reduction for nonmetropolitan Minnesota counties; and after
675.25 January 1, 2002, the county medical assistance and general
675.26 assistance medical care capitation base rate prior to plan
675.27 specific adjustments is reduced 6.3 percent for Hennepin county,
675.28 two percent for the remaining metropolitan counties, and 1.6
675.29 percent for nonmetropolitan Minnesota counties. Nursing
675.30 facility and elderly waiver payments and demonstration project
675.31 payments operating under subdivision 23 are excluded from this
675.32 reduction. The amount calculated under this clause shall not be
675.33 adjusted for periods already paid due to subsequent changes to
675.34 the capitation payments;
675.35 (2) beginning July 1, 2001, $2,537,000 2003, $2,157,000
675.36 from the capitation rates paid under this section plus any
676.1 federal matching funds on this amount;
676.2 (3) beginning July 1, 2002, an additional $12,700,000 from
676.3 the capitation rates paid under this section; and
676.4 (4) beginning July 1, 2003, an additional $4,700,000 from
676.5 the capitation rates paid under this section.
676.6 (b) This subdivision shall be effective upon approval of a
676.7 federal waiver which allows federal financial participation in
676.8 the medical education and research fund.
676.9 (c) Effective July 1, 2003, the amount reduced from the
676.10 prepaid general assistance medical care payments under paragraph
676.11 (a), clause (1), shall be transferred to the general fund.
