SENATE DOCKET, NO. 1055        FILED ON: 1/20/2011

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 525

The Commonwealth of Massachusetts

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PRESENTED BY:

Michael O. Moore

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To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
Court assembled:

The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:

An Act relative to transparency in hospital margins..

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PETITION OF:

SENATE DOCKET, NO. 1055        FILED ON: 1/20/2011

SENATE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 525

The Commonwealth of Massachusetts

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In the Year Two Thousand Eleven

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An Act relative to transparency in hospital margins..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1. Chapter 118G of the General Laws is hereby amended by inserting after section 4 the following section:- 

Section 4A.  If in any fiscal year, an Acute Hospital, as defined in this chapter, reports to the division an operating margin that exceeds 6 percent, the division shall hold a public hearing within 60 days.  The Acute Hospital shall submit testimony on its overall financial condition and the continued need to sustain an operating margin that exceeds 6 percent.  The Acute Hospital shall also submit testimony on efforts the Acute Hospital is making to advance health care cost containment and health care quality improvement; and whether, and in what proportion to the total operating margin, the Acute Hospital will dedicate any funds to reducing health care costs.  The division shall review such testimony and issue a final report on the results of the hearing.  In implementing the requirements of this Section, the Division shall utilize data collected by hospitals pursuant to the requirements of Section 53 of Chapter 288 of the Acts of 2010.