Analysis

Topic: Nursing Homes
Sponsor: Representative Bovin
Date Ordered Enrolled: December 14, 2000
Date of Analysis: December 21, 2000

Position: The Department of Consumer and Industry Services supports the bill.

Background: This bill is part of the House long-term care package. One bill in this package has become law (House Bill 5460), and four others were enrolled in the Lame Duck session.

The Michigan Public Health Institute is a non-profit corporation created as a result of Public Act 264 of 1989. Working closely with the Departments of Community Health and Consumer and Industry Services, the state's largest universities, and other interested parties MPHI coordinates collaborative research and programs in the health care area.

MPHI provides the Department of Consumer and Industry Services with regulatory support by contract. The department frequently contracts with MPHI to secure the services of a clinical advisor or temporary manager for a nursing home experiencing compliance problems. The services of these individuals are paid for by the nursing home. The department may also contract with MPHI for special surveys, studies, and other services.

There has been a concern that the Public Health Code does not specifically authorize the department to contract with the Institute. Although there has been no legal action challenging this relationship, the bill will forestall a challenge at a critical time in the future when the department is working to save a troubled nursing home or protect the patients in a nursing home that is closing.

Bill Content: The bill amends the Public Health Code to allow the Department of Consumer and Industry Services to consult and work with the Michigan Public Health Institute in performing the department's regulatory and disciplinary responsibilities. The department may also contract with MPHI for the performance of specific functions. The Senate inserted a minor amendment requested by the department to clarify that the ability to work with MPHI applied to all activities covered in this article of the Public Health Code.

Arguments For: The bill will eliminate the concern that the department's ability to work with MPHI may be challenged in the future. Such a challenge could come at a critical time and could delay or hamper the recovery or closing of a troubled nursing home.

Arguments Against: The bill is not necessary. Also, specifying MPHI in the Public Health Code may prevent the department from working with another organization as it has worked with MPHI in the past.

Fiscal Impact: The bill does not affect the department financially. The nursing home pays for the MPHI's services. However, some of these costs may be Medicaid eligible.

Administrative Rules Impact: No administrative rules will be required by this bill.