After several weeks of meetings with the Lt. Governor, the Secretary of Health, and other stakeholder parties, a compromise has been reached on the Senate version of the Maryland False Health Claims Act of 2010, and the Judicial Proceedings Committee has adopted amendments accordingly. We believe that the amendments, reflecting a joint effort by Johns Hopkins, the Maryland Hospital Association, and Maryland Small Providers, strike a balance between the needs of the state and the needs of health care providers.

These amendments will allow providers to avoid frivolous lawsuits while simultaneously allowing the state to pursue real fraud. The amendments make the following changes to the original bill language:
� Narrow the intent requirement, excluding mistakes and negligence as violations under the Act
� Add mitigating factors to be considered by courts in determining fines and damages and allow an opportunity to argue for reduced fines and damages
� Eliminate mandatory payment of plaintiff attorney�s fees by the defendant
� Require the state to notify the defendant when they have received notice of an alleged violation and give the defendant an opportunity to stop the violation from continuing during an investigation
� Restrict the actions of whistleblowers by requiring the state to intervene and take over any case, and specifying that if the state chooses not intervene, the whistleblower cannot move forward on their own accord and the case against the defendant must be dismissed

This afternoon the Finance Committee voted to approve the amended bill. We are working to ensure it receives a favorable vote, consistent with the agreed upon amendment, when the bill comes to the Senate floor for a vote sometime this week.


Revenue Estimates

State revenues are coming in at about the rate that was expected, according to the latest information from the Board of Revenue Estimates. For fiscal year 2011, the estimate projection has remained flat at about $12.7 billion in tax revenue. Although revenue projections were written down by about $66 million dollars for the current 2010 fiscal year, this was largely attributed to the losses in lottery and sales tax income brought on by the winter�s large snowstorms, as well as falling incomes in 2009. Sufficient fund balance has been built into the current year budget to cover the $66 million shortfall.


Capital Budget Hearings

Capital budget committees have begun their hearings on this year�s capital projects, a number of which affect Johns Hopkins. The Senate committee has heard a presentation on the East Baltimore Biotechnology Park (EBDI) and the MICUA capital grant program.

The Governor�s budget provided $5 million for EBDI this year, and projects $5 million for the following three years until 2014. The Department of Legislative Services (DLS) advised the committee to concur with the Governor�s allowance.

The Governor�s capital budget provided only $4 million for the MICUA capital grant program this year, which includes projects for Goucher College, Hood College, and Stevenson University. For the past two years, the program has received $9 million each year, so this is a significant reduction. DLS recommended that the committee concur with the Governor�s allowance, however, committee members had concerns with such a large reduction and stated that they would be discussing this funding further.

The capital hearings for the New Clinical Building will be held in the Senate on the 17th, and in the House on the 22nd.


Self-Referral Legislation

Last week the Senate Education, Health & Environmental Matters Committee held a hearing on this year�s self-referral legislation. Johns Hopkins� radiation oncologist, Moody Wharam, testified in opposition to the bill with colleagues from the University of Maryland Medical System and other hospitals. As the proponents of the legislation noted in their testimony, Committee Chair Carter Conway has said her committee will not take action on the bill until the courts have issued a ruling on this matter. This afternoon the bill was heard by the House Health and Government Operations Committee. As in the Senate, indications are that the bill will not move this year, unless the issue is ruled upon in the courts prior to session�s end.

[GO TO TOP]

BILLS INTRODUCED

Budget - Operating

SB0998 State Budget

SB 998, a Constitutional amendment, modifies the state budget process by allowing the General Assembly to reallocate resources in the Governor�s budget by reducing or increasing appropriations for Executive Branch agencies. However, the total appropriation for the executive department approved by the General Assembly cannot exceed the total allowance submitted by the Governor. The Governor can veto any increase or additional item added by the General Assembly. If the Governor exercises the veto authority, a special session would be held within 30 days after the Governor�s action to consider the vetoed items. The special session would be limited solely to the budget vetoes.

Effective Date: Contingent
For more information, please contact: Mat Palmer

[GO TO TOP]    [GO TO BILL LIST]


Health Care Facilities

SB0992 Applications for Certificates of Need - Notice to and Involvement of Bordering Counties

HB 992 would alter the definition of "interested party" as it pertains to a certificate of need to add any health planning agency in the adjoining counties to the proposed facility, and would provide for notification by the Maryland Health Care Commission of those counties.

Effective Date: October 1, 2010
For more information, please contact: Mat Palmer

[GO TO TOP]    [GO TO BILL LIST]


Health Insurance/Health Care Access

HB1423 Small Group Market Health Insurance - Renewal Notice

HB 1423 increases from 45 days to 60 days the minimum number of days before the expiration of a health benefit plan by which a health insurance carrier is required to mail a notice of renewal to a small employer under small group market health insurance.

Effective Date: October 1, 2010
For more information, please contact: Mat Palmer

[GO TO TOP]    [GO TO BILL LIST]


Health, General/Public/Environmental

HB1503 Children's Environmental Health Protection Act

HB 1503 (1) requires each county board to adopt a health and safety policy that includes specified standards for specified plans, (2) provides for the scope of the Act, (3) requires a hazardous substance removal plan, fire and life safety code repair plan, and facility and equipment violation plan to contain specified provisions, and (4) requires a health, safety, and environmental management plan to require the use of specified cleaning and maintenance products.

Effective Date: July 1, 2010
For more information, please contact: Kevin Bowman

[GO TO TOP]    [GO TO BILL LIST]


Higher Education/Financial Aid

SB1084 Maryland Higher Education Commission - Review of Program Proposals

SB 1084 requires the Maryland Higher Education Commission (MHEC) to establish regulations authorizing a "deliberative fact-finding process", which would allow for witness testimony and the weighing of evidence when they consider the application of program proposals. The bill would also remove the section in code which makes the decision by MHEC final and not subject to judicial review.

Effective Date: July 1, 2010
For more information, please contact: Mat Palmer


[GO TO TOP]    [GO TO BILL LIST]