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The 190th General Court of the Commonwealth of Massachusetts


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. To provide for certain obligations of the commonwealth, the sums set forth in section 2A are hereby appropriated for the fiscal year ending June 30, 2000, from the general fund, for the several purposes and subject to the conditions specified therein and subject to the provisions of law regulating the disbursement of public funds for said fiscal year.





For a one-time loan to the city of Quincy for the purpose of facilitating the conversion of Quincy Hospital from ownership by the city of Quincy to ownership by a private nonprofit corporation; provided, that such loan shall be repaid by the city in three equal annual installments, without interest, commencing in fiscal year 2005 and ending in fiscal year 2007; provided further, that the terms of the loan shall be established by and subject to the terms of an agreement to be negotiated between the city, represented by the mayor thereof, and the secretary of administration and finance; provided further, that the state comptroller shall intercept cherry sheet payments, so called, due the city from the commonwealth upon certification by said secretary that said city is in default on the loan or any other terms of the agreement; provided further, that the proceeds of the loan shall be used by the city for the costs associated with said conversion, including, but not limited to, obligations of the hospital to the city for employee benefits and for any indebtedness incurred by the city on behalf of the hospital; provided further, that in the event that the financial commitments of the city to the hospital in fiscal years 2000 to 2004, inclusive, terminate for any reason prior to fiscal year 2005, the annual installment payments of the loan shall become due in the fiscal year following the fiscal year in which the financial commitments terminate; provided further, that the city, in collaboration with the corporation, shall file annually with said secretary and with the secretary of health and human services, the house and senate committees on ways and means and the joint committee on health care a report delineating the benchmarks and milestones established by the corporation to achieve financial viability and the status of the corporation in achieving the benchmarks and milestones, including changes in patient volume and payer mix, the establishment and maintenance of community benefits by the corporation and the results of affiliations with other health care providers and health care entities; and provided further, that the report shall be filed not later than the January 1 following the end of each hospital fiscal year 2000 to 2004, inclusive.........................................$12,100,000

Executive Office of Health and Human Services.

Division of Health Care Finance and Policy.

For the purpose, notwithstanding the provisions of any general or special law to the contrary, of awarding one-time hardship relief grants in hospital fiscal year 2000 to qualifying community health centers and acute care hospitals; provided, that the division shall establish award criteria for the grants consistent with the provisions of this item and the recommendations of the advisory council established herein; provided further, that the criteria shall, at a minimum, make eligible for such grants those community health centers and acute care hospitals that reflect the following circumstances: (1) when an applicant which is an acute care hospital is negatively impacted as a direct result of the loan being made pursuant to item 1599-1499; provided, that such applicant is located in a hospital service delivery area adjacent to the municipality benefiting from the loan and such applicant incurs among the highest uncompensated care costs of acute care hospitals in the commonwealth; (2) when an applicant which is a freestanding or hospital licensed community health center is experiencing severe financial distress as evidenced by substantial operating deficits or substantial negative fund balances which jeopardizes the delivery of health care services to vulnerable populations; provided further, that such applicant incurs disproportionately high uncompensated care costs pursuant to regulations of the division; or (3) when an applicant which is an acute care hospital is substantially impacted by the recent or imminent withdrawal of a Medicare health maintenance organization from the service delivery area in which the applicant provides services; provided further, that such criteria shall be submitted to the secretary of administration and finance and the house and senate committees on ways and means at least ten days prior to the adoption or promulgation thereof; provided further, that such applicant shall demonstrate strong management practices or an ability and willingness to develop such practices that are intended to alleviate any recurring need for such grants; provided further, that such applicant shall provide documentation requested by the division to substantiate requests for such grants including, but not limited to, information on the number of patients served and the cost and types of services provided to the patients; provided further, that such applicant shall submit to financial review by the division; provided further, that an advisory group consisting of the commissioner of medical assistance, the commissioner of public health, the executive director of the Massachusetts League of Community Health Centers, the president of the Massachusetts Hospital Association and the secretary of health and human services, or the designees of any such member thereof, shall recommend to the division not later than 30 days after the effective date of this item, the most efficacious and equitable means of awarding the grants authorized herein; provided further, that the recommended criteria shall be consistent with the provisions of this item; and provided further, that said secretary shall chair the advisory group..........................................$7,000,000

SECTION 3. This act shall take effect upon its passage.

Approved October 8, 1999.