FOR AN ACT ENTITLED, An Act to  expand the disclosure of inpatient hospital charges and to provide for the development of a system for the disclosure of charges for outpatient procedures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
     Section 1.  That § 34-12E-11 be amended to read as follows:
     34-12E-11.   Any hospital licensed pursuant to chapter 34-12 shall report annually to the Department of Health the charges for the twenty-five most common inpatient diagnostic-related groups South Dakota Association of Healthcare Organizations the charge information as described in §  34-12E-13 for that hospital's All Patient Refined Diagnosis-Related Groups for which there are that hospital had at least ten cases rendered by the hospital during the twelve months preceding the report. The Department of Health shall promulgate rules pursuant to chapter 1-26 to provide for the reporting of charges the charge information by hospitals. The rules shall include:

             (1)      The method for hospitals to report charges to the department ; and

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             (2)      Standards that provide for the validity and comparability of charge reports ; and

             (3)      The format for making charge reports available to the public .
     Section 2.  That chapter 34-12E be amended by adding thereto a NEW SECTION to read as follows:

     The South Dakota Association of Healthcare Organizations shall develop a web-based system, available to the public at no cost, for reporting the charge information of hospitals. The charge information shall include disclaimers regarding factors, including case severity ratings and individual patient variations, which may affect actual charges to a patient for services rendered. The website shall provide information that compares hospital-specific data to hospital statewide data. The website shall be established by June 1, 2009, and shall be updated no less than annually.
     Section 3.  That § 34-12E-12 be amended to read as follows:
     34-12E-12.   The Department of Health shall make available the hospital charge reports required by § 34-12E-11 provide a link to the web-based system developed pursuant to section 2 of this Act on its website. The charge reports shall include disclaimers regarding factors, including case severity ratings and individual patient variations, which may affect actual charges to a patient for services rendered. Upon request, the department shall provide the charge reports by first class mail.
     Section 4.  That § 34-12E-13 be amended to read as follows:
     34-12E-13.   For the purposes of § § 34-12E-11 to 34-12E-13, inclusive and section 2 of this Act , the term, charge information , is that amount that a hospital would expect to charge for an inpatient diagnostic-related group. Any charge that is required by §§ 34-12E-11 to 34-12E-13, inclusive, to be reported to the public shall be the median charge for all cases of the diagnostic- related group occurring in the twelve months preceding the report includes the number of

discharges; average length of stay; average charge; median charge; demographic information; payer mix; charges not paid and charges paid by medicare, medicaid, and other government programs, and private insurance; and uncompensated care .
     Section 5.  That chapter 34-12E be amended by adding thereto a NEW SECTION to read as follows:

     The Department of Health shall, in collaboration with the South Dakota Association of Healthcare Organizations and the South Dakota State Medical Association, develop a list of outpatient procedures for the purpose of disclosure of charges to the public. The list shall be developed by December 31, 2008.