LRB-1588/1
DAK:jld:jf
2007 - 2008 LEGISLATURE
September 20, 2007 - Introduced by Representatives Albers, Gronemus, Musser,
A. Ott
and Hahn, cosponsored by Senators Schultz and Leibham. Referred to
Committee on Health and Healthcare Reform.
AB509,1,4 1An Act to amend 20.435 (7) (da), 51.42 (3) (as) 1., 51.42 (3) (as) 1m. and 51.42
2(3) (as) 3. of the statutes; relating to: reducing reimbursement by county
3departments of community programs for inpatient facility care and services for
4mentally ill county residents and making an appropriation.
Analysis by the Legislative Reference Bureau
Under current law, a county department of community programs must
reimburse a state, local, or private facility for the actual cost of all authorized care
and services that are provided to mentally ill, developmentally disabled, alcoholic,
or other drug dependent residents of the county, less fee collections made from
patients.
This bill changes the inpatient facility reimbursement requirement, beginning
on January 1, 2008, to require that a county department of community programs
reimburse 50 percent, rather than all, of care and services provided to mentally ill
county residents in inpatient facilities, less applicable collections. The bill provides
a sum sufficient appropriation of general purpose revenue for the Department of
Health and Family Services to pay the remaining 50 percent of the cost.
For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB509, s. 1
1Section 1. 20.435 (7) (da) of the statutes is amended to read:
AB509,2,52 20.435 (7) (da) Reimbursements to local units of government. A sum sufficient
3for the cost of care as provided in s. 51.22 (3) and for 50 percent of the cost of
4authorized care and services of mentally ill patients in inpatient facilities, as
5provided in s. 51.42 (3) (as) 1., 1m., and 3
.
AB509, s. 2 6Section 2. 51.42 (3) (as) 1. of the statutes is amended to read:
AB509,3,117 51.42 (3) (as) 1. A county department of community programs shall authorize
8all care of any patient in a state, local or private facility under a contractual
9agreement between the county department of community programs and the facility,
10unless the county department of community programs governs the facility. The need
11for inpatient care shall be determined by the program director or designee in
12consultation with and upon the recommendation of a licensed physician trained in
13psychiatry and employed by the county department of community programs or its
14contract agency. In cases of emergency, a facility under contract with any county
15department of community programs shall charge the county department of
16community programs having jurisdiction in the county where the patient is found.
17The county department of community programs shall reimburse the facility for the
18actual cost of all authorized care and services for developmentally disabled,
19alcoholic, and other drug dependent patients and for 50 percent of all authorized care
20and services for mentally ill patients,
less applicable collections under s. 46.036 46.03
21(18)
, unless the department of health and family services determines that a charge
22is administratively infeasible, or unless the department of health and family
23services, after individual review, determines that the charge is not attributable to the
24cost of basic care and services. From the appropriation under s. 20.435 (7) (da), the
25department of health and family services shall reimburse the facility for the

1remaining 50 percent of all authorized care and services for mentally ill patients.

2Except as provided in subd. 1m., a county department of community programs may
3not reimburse any state institution or receive credit for collections for care received
4therein by nonresidents of this state, interstate compact clients, transfers under s.
551.35 (3), and transfers from Wisconsin state prisons under s. 51.37 (5) (a),
6commitments under s. 975.01, 1977 stats., or s. 975.02, 1977 stats., or s. 971.14,
7971.17 or 975.06 or admissions under s. 975.17, 1977 stats., or children placed in the
8guardianship of the department of health and family services under s. 48.427 or
948.43 or under the supervision of the department of corrections under s. 938.183 or
10938.355. The exclusionary provisions of s. 46.03 (18) do not apply to direct and
11indirect costs which are attributable to care and treatment of the client.
AB509, s. 3 12Section 3. 51.42 (3) (as) 1m. of the statutes is amended to read:
AB509,3,2113 51.42 (3) (as) 1m. A county department of community programs shall
14reimburse a mental health institute at 50 percent and, from the appropriation
15account under s. 20.437 (7) (da), the department of health and family services shall
16reimburse a mental health institute at 50 percent, of
the institute's daily rate for
17custody of any person who is ordered by a court located in that county to be examined
18at the mental health institute under s. 971.14 (2) for all days that the person remains
19in custody at the mental health institute, beginning 48 hours, not including
20Saturdays, Sundays, and legal holidays, after the sheriff and county department
21receive notice under s. 971.14 (2) (d) that the examination has been completed.
AB509, s. 4 22Section 4. 51.42 (3) (as) 3. of the statutes is amended to read:
AB509,4,1123 51.42 (3) (as) 3. Care Fifty percent of care, services and supplies provided after
24December 31, 1973, to any person who, on December 31, 1973, was in or under the
25supervision of a mental health institute, or was receiving mental health services in

1a facility authorized by s. 51.08 or 51.09, but was not admitted to a mental health
2institute by the department of health and family services, shall be charged to the
3county department of community programs which was responsible for such care and
4services at the place where the patient resided when admitted to the institution, and
550 percent of such care, services, and supplies shall be charged to the department of
6health and family services for payment from the appropriation account under s.
720.435 (7) (da)
. The department of health and family services may bill county
8departments of community programs for care provided at the mental health
9institutes at rates which the department of health and family services sets on a
10flexible basis, except that this flexible rate structure shall cover the cost of operations
11of the mental health institutes.
AB509, s. 5 12Section 5. Effective date.
AB509,4,1313 (1) This act takes effect on January 1, 2008.
AB509,4,1414 (End)
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