An Act To Continue Necessary State Funding of Freestanding, Nonprofit Psychiatric Hospitals for Services Provided to Indigent Patients and for Other Purposes
Maine Legislature, Session 121, LD 0716
Committee: Appropriations and Financial Affairs
Sponsors: MARTIN, CATHCART, DAGGETT, DUDLEY, KANE, RICHARDSON

Legislative Document 
No. 716 
S.P.254 
In Senate, February 14, 2003 
An Act To Continue Necessary State Funding of Freestanding, 
Nonprofit Psychiatric Hospitals for Services Provided to Indigent 
Patients and for Other Purposes 
(EMERGENCY) 
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed. 
Presented by Senator MARTIN of Aroostook. 
JOY J. O'BRIEN 
Secretary of the Senate 
Cosponsored by Senators: CATHCART of Penobscot, President DAGGETT of Kennebec, 
Representatives: DUDLEY of Portland, KANE of Saco, RICHARDSON of Brunswick. 
Printed on recyded paper 
Emergency preamble. Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, 
this 
legislation 
requires 
reimbursement 
for 
services provided by nonprofit psychiatric hospitals to indigent 
patients; and 
Whereas, without this 
services 
to mentally ill 
hampered; and 
reimbursement, the ability to provide 
indigent persons 
will 
be 
severely 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. Carrying balance; Medical Care - Payments to Providers. 
Notwithstanding any other provision of law, 
the Department of 
Human 
Services 
shall 
reimburse 
the 
State's 
freestanding, 
nonprofit psychiatric hospitals for services provided to indigent 
patients 
when 
these 
expenses 
can 
not 
be 
reimbursed 
by 
the 
Medicaid or Medicaid Disproportionate Share programs in fiscal 
years 2002-03 from the carrying balance on June 30, 2003 in the 
Medical Care -
Payments to Providers General Fund account in the 
Department of Human Services in an amount of at least $5,000,000 
but no more than $10,000,000. 
Sec. 2. Pursuit of federal funding for disproportionate share shortfall 
for institutes for mental disease. 
The Commissioner of Human Services 
and the Commissioner of Behavioral and Developmental Services 
shall continue to work with the State's 2 freestanding, nonprofit 
psychiatric hospitals to advocate for the elimination of the 
federal cap on disproportionate share hospital funds that are 
available for institutes for mental disease, or for other federal 
reforms 
that would 
ensure 
adequate 
federal 
funding 
for 
the 
population served by these hospitals. 
The commissioners shall 
report 
their 
progress 
to 
the 
Joint 
Standing 
Committee 
on 
Appropriations and Financial Affairs no later than February 15, 
2004. 
Sec. 
3. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
BEHAVIORAL AND DEVELOPMENT SERVICES, 
DEPAR".J.HERT OF 
The 
following 
Mental Health Services -
Community 0121 
Initiative: 
Provides 
funds 
as required by the Maine Revised 
Statutes, Title 34-B, section 3610, to provide safety net crisis 
and intermediate services at nonstate mental health institutions. 
General Fund 
All Other 
General Fund Total 
2003-04 
$13,000,000 
$13,000,000 
2004-05 
$18,000,000 
$18,000,000 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This 
bill 
provides 
necessary 
funding 
to 
reimburse 
the 
State's 
freestanding, 
nonprofit 
psychiatric 
hospitals 
for 
services provided to indigent patients when these expenses can 
not be reimbursed by the Medicaid or Medicaid Disproportionate 
Share programs. 
The bill also provides funds to meet shortfalls 
projected at Augusta Mental Health Institute and Bangor Mental 
Health Institute. 
Of the $18,000,000 
sought for fiscal year 
2003-04, 
$10,000,000 
is 
projected 
to 
be 
needed 
for 
the 
freestanding, nonprofit psychiatric hospitals and $8,000,000 is 
needed for AMHI and BMHI. 
The figures are based on preliminary 
estimates of the Department of Human Services. 
The bill also requires on the Commissioner of Human Services 
and the Commissioner of Behavioral and Developmental Services to 
continue 
to 
work 
with 
these hospitals 
to 
advocate 
for 
the 
elimination of the federal cap on disproportionate share funds 
that are available for institutes for mental disease, or for 
other federal reforms that would ensure adequate federal funding 
for the population served by these hospitals. 
Similar provisions 
for prior fiscal years were enacted in Public Law 2001, chapter 
559, Part X, sections 9 and 10. 
Finally, in the event that there are not sufficient carrying 
balances 
available 
for 
reimbursing 
the 
nonprofit psychiatric 
hospitals, 
the bill provides 
funding 
to 
these hospitals 
to 
deliver so-called "safety net services" to people with major 
mental illness who the Department of Behavioral and Developmental 
Services determines can not otherwise be served by the local 
service networks. 
This funding and treatment obligation of the 
Department of Behavioral and Developmental Services is set forth 
in statute.