Sec. 1. 22 MRSA §42, sub-§9 is enacted to read:

9.__Contract obligation.__The department shall adopt rules regarding the continuation of contracts for health services with hospitals and other providers of health care licensed by the State.__Rules adopted pursuant to this subsection are routine technical rules as defined in Title 5, chapter 375, subchapter 2- A. The rules must include the following terms:

A.__The signing of a new contract before the end of the existing contract period; and

B.__If a new contract is not signed in accordance with paragraph A, continuation of services provided under the terms of the existing contract and one of the following settlements between the department and the hospital or health care provider, at the option of the department:

(1)__Final payment for services in the continuation period at the rate of the new contract.__If that payment is made by the department, the payment must be made in a lump sum; or

(2)__Payment from the department of the cost to the hospital or health care provider of any interest and costs incurred in borrowing funds that is necessitated because of the failure to sign the new contract.

SUMMARY

This bill provides a mechanism for reimbursing hospitals and health care providers that contract with the Department of Health and Human Services for services. The bill requires new contracts to be signed prior to the end of the old contracts and provides for payment if this is not done.