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Legislature.__In adopting the joint rules, the Legislature shall | give consideration to ensuring that legislative oversight of Dirigo | Health is thorough and ongoing, that normal budgetary procedures | and controls are exercised and that committee jurisdiction is | consistent with the subject matter jurisdiction of the joint | standing committees. |
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| | Sec. 4. Standardized reporting and voluntary limits to control growth of hospital costs. |
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| | 1. Voluntary restraint. To control the rate of growth of the | costs of hospital services, the Legislature requests that each | hospital licensed under the Maine Revised Statutes, Title 22, | chapter 405 voluntarily restrain cost increases and |
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| consolidated operating margins in accordance with this section. | The targets and methodology apply to each hospital's fiscal year | beginning on or after July 1, 2005 and remain in effect through | the end of each hospital's fiscal year beginning on or after July | 1, 2007. |
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| A. Each hospital is asked to voluntarily hold its | consolidated operating margin to no more than 3%. For | purposes of this section, a hospital's consolidated | operating margin is calculated by dividing its consolidated | operating income by its total consolidated operating | revenue. |
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| B. Each hospital is asked to voluntarily restrain its | increase in its expense per casemix-adjusted inpatient and | volume-adjusted outpatient discharge to no more than 110% of | the forecasted increase in the hospital market basket index | for the coming federal fiscal year, as published in the | Federal Register, when the federal Centers for Medicare and | Medicaid Services publishes the Medicare program's hospital | inpatient prospective payment system rates for the coming | federal fiscal year. For purposes of this paragraph, the | measure of a hospital's expense per casemix-adjusted | inpatient and volume-adjusted outpatient discharge is | calculated by: |
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| (1) Calculating the hospital's total hospital-only | expenses; |
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| (2) Subtracting from the hospital's total hospital- | only expenses the amount of the hospital's bad debt; |
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| (3) Subtracting from the amount reached in | subparagraph (2) the hospital taxes paid to the State | during the hospital's fiscal year; and |
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