To amend sections 5112.40, 5112.41, and 5112.46 of the Revised Code to revise the law governing hospital assessments and to provide that the provisions of this act terminate on October 1, 2011, when sections 5112.40, 5112.41, and 5112.46 of the Revised Code are repealed on that date.

Section 1.  That sections 5112.40, 5112.41, and 5112.46 of the Revised Code be amended to read as follows:

Sec. 5112.40.  As used in sections 5112.40 to 5112.48 of the Revised Code:

(A) "Assessment program year" means the twelve-month period beginning the first day of October of a calendar year and ending the last day of September of the following calendar year.

(B) "Cost reporting period" means the period of time used by a hospital in reporting costs for purposes of the medicare program.

(C) "Federal fiscal year" means the twelve-month period beginning the first day of October of a calendar year and ending the last day of September of the following calendar year.

(D)(1) Except as provided in division (D)(2) of this section, "hospital" means a hospital to which any of the following applies:

(a) The hospital is registered under section 3701.07 of the Revised Code as a general medical and surgical hospital or a pediatric general hospital and provides inpatient hospital services, as defined in 42 C.F.R. 440.10.

(b) The hospital is recognized under the medicare program as a cancer hospital and is exempt from the medicare prospective payment system.

(c) The hospital is a psychiatric hospital licensed under section 5119.20 of the Revised Code.

(2) "Hospital" does not include either of the following:

(a) A federal hospital;

(b) A hospital that does not charge any of its patients for its services.

(E) "Hospital care assurance program" means the program established under sections 5112.01 to 5112.21 of the Revised Code.

(F) "Medicaid" has the same meaning as in section 5111.01 of the Revised Code.

(G) "Medicare" means the program established under Title XVIII of the Social Security Act.

(H) "State fiscal year" means the twelve-month period beginning the first day of July of a calendar year and ending the last day of June of the following calendar year.

(I)(1) Except as provided in divisions (I)(2) and (3) of this section, "total facility costs" means the total costs to a hospital for all care provided to all patients, including the direct, indirect, and overhead costs to the hospital of all services, supplies, equipment, and capital related to the care of patients, regardless of whether patients are enrolled in a health insuring corporation.

(2) "Total facility costs" excludes all of the following of a hospital's costs as shown on the cost-reporting data used for purposes of determining the hospital's assessment under section 5112.41 of the Revised Code:

(a) Skilled nursing services provided in distinct-part nursing facility units;

(b) Home health services;

(c) Hospice services;

(d) Ambulance services;

(e) Renting durable medical equipment;

(f) Selling durable medical equipment;

(g) Uncompensated care, as defined in section 5112.01 of the Revised Code, provided to uninsured patients;

(h) Services provided to medicare beneficiaries.

(3) "Total facility costs" excludes any costs excluded from a hospital's total facility costs pursuant to rules, if any, adopted under division (B) of section 5112.46 of the Revised Code.

Sec. 5112.41.  (A) For the purposes specified in section 5112.45 of the Revised Code and subject to section 5112.48 of the Revised Code, there is hereby imposed an assessment on all hospitals each assessment program year. The amount of a hospital's assessment for an assessment program year shall equal, except as provided in division (D) of this section, the percentage specified in established under division (B)(C) of this section of the hospital's total facility costs for the period of time specified in division (C)(B) of this section. The amount of a hospital's total facility costs shall be derived from cost-reporting data for the hospital submitted to the department of job and family services for purposes of the hospital care assurance program. The cost-reporting data used to determine a hospital's assessment is subject to the same type of adjustments made to the data under the hospital care assurance program.

(B) The percentage specified in this division is the following:

(1) For the first assessment program year beginning after the effective date of this section, one and fifty-two hundredths per cent;

(2) Subject to division (D) of this section, for the second assessment program year after the effective date of this section and each successive assessment program year, one and sixty-one hundredths per cent.

(C) The period of time specified in this division is the hospital's cost reporting period that ends in the state fiscal year that ends in the federal fiscal year that precedes the federal fiscal year that precedes the assessment program year for which the assessment is imposed.

(D)(C) The department of job and family services shall apply to the United States secretary of health and human services for a waiver under 42 U.S.C. 1396b(w)(3)(E) to establish, for the second assessment program year after the effective date of this section and each successive assessment program year, a tiered percentages to be used under this section for the assessment on hospitals' total facility costs instead of applying the percentage specified in division (B)(2) of this section. The highest percentage shall not exceed one and one-half per cent. If the United States secretary denies the waiver, the department shall apply the establish a uniform percentage specified in division (B)(2) of this section for the second assessment program year after the effective date of this section and each successive to be used for the assessment program year. The percentage shall not exceed one and one-half per cent.

(E)(D) The assessment imposed by this section on a hospital is in addition to the assessment imposed by section 5112.06 of the Revised Code.

Sec. 5112.46.  (A) The director of job and family services may adopt, amend, and rescind rules in accordance with Chapter 119. of the Revised Code as necessary to implement sections 5112.40 to 5112.48 of the Revised Code.

(B) The rules adopted under this section may provide that a hospital's total facility costs for the purpose of the assessment under section 5112.41 of the Revised Code exclude any of the following:

(1) A hospital's costs associated with providing care to recipients of any of the following:

(a) The medicaid program;

(b) The medicare program;

(c) The disability financial assistance program established under Chapter 5115. of the Revised Code;

(d)(c) The program for medically handicapped children established under section 3701.023 of the Revised Code;

(e)(d) Services provided under the maternal and child health services block grant established under Title V of the Social Security Act.

(2) Any other category of hospital costs the director deems appropriate under federal law and regulations governing the medicaid program.

Section 2.  That existing sections 5112.40, 5112.41, and 5112.46 of the Revised Code are hereby repealed.

Section 3.  The amendment of sections 5112.40, 5112.41, and 5112.46 of the Revised Code is not intended to supersede the earlier repeal, with delayed effective date, of those sections.

Section 4.  Sections 5112.40, 5112.41, and 5112.46 of the Revised Code, as amended by this act, shall take effect October 1, 2010.