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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1392 Introduced in House (IH)]

106th CONGRESS
  1st Session
                                H. R. 1392

   To amend title XVIII of the Social Security Act to authorize the 
  Secretary of Health and Human Services to enter into contracts with 
providers of services to furnish certain inpatient hospital services at 
                   an all-inclusive rate of payment.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 13, 1999

  Mr. Stark introduced the following bill; which was referred to the 
   Committee on Ways and Means, and in addition to the Committee on 
Commerce, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
   To amend title XVIII of the Social Security Act to authorize the 
  Secretary of Health and Human Services to enter into contracts with 
providers of services to furnish certain inpatient hospital services at 
                   an all-inclusive rate of payment.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CENTERS OF EXCELLENCE.

    (a) In General.--Title XVIII of the Social Security Act is amended 
by inserting after section 1896 the following new section:

                        ``centers of excellence

    ``Sec. 1897. (a) In General.--The Secretary shall use a competitive 
process to contract with specific hospitals or other entities for 
furnishing services related to surgical procedures, and for furnished 
services (unrelated to surgical procedures) to hospital inpatients that 
the Secretary determines to be appropriate. Such services may include 
any services covered under this title that the Secretary determines to 
be appropriate, including post-hospital services.
    ``(b) Quality Standards.--Only entities that meet quality standards 
established by the Secretary shall be eligible to contract under this 
section. In considering quality, the Secretary shall take into account 
the quality, experience, and quantity of services of physicians who 
provide services in more than one entity. Contracting entities shall 
implement a quality improvement plan approved by the Secretary.
    ``(c) Payment.--Payment under this section shall be made on the 
basis of negotiated all-inclusive rates. The amount of payment made by 
the Secretary to an entity under this title for services covered under 
a contract shall be less than the aggregate amount of the payments that 
the Secretary would have otherwise made for the services.
    ``(d) Contract Period.--A contract period shall be 3 years (subject 
to renewal), as long as the entity continues to meet quality and other 
contractual standards.
    ``(e) Incentives for Use of Centers.--The Secretary may permit 
entities under a contract under this section to furnish additional 
services or waive beneficiary cost-sharing, subject to the approval of 
the Secretary.
    ``(f) Limit on Number of Centers.--The Secretary shall limit the 
number of centers in a geographic area to the number needed to meet 
projected demand for contracted services.''.
    (b) Effective Dates.--
            (1) The amendment made by subsection (a) applies to 
        services furnished on or after October 1, 2001.
            (2) By October 1, 2001, the Secretary shall enter into 
        contracts under the amendment made by subsection (a) for 
        coronary artery by-pass surgery and other heart procedures, (b) 
        knee, and hip replacement surgery, and (c) organ 
        transplantation in geographic areas nationwide such that at 
        least 20 percent of the projected number of those procedures 
        can be provided under such contracts.
                                 <all>
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