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:

  • 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. 

 

 

 

 

 

 

Updated Tuesday, 16-Nov-2010 12:25:25 CST