CHAPTER 182

(SB 169)

Hospitals required to provide diagnostic-related group charges
information to the public.


         ENTITLED, An Act to  require hospitals to report the charges for certain diagnostic-related groups.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That chapter 34-12E be amended by adding thereto a NEW SECTION to read as follows:

     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 for which there are 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 by hospitals. The rules shall include:

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

             (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 Department of Health shall make available the hospital charge reports required by section 1 of this Act on its web site. 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  3.  That chapter 34-12E be amended by adding thereto a NEW SECTION to read as follows:

     For the purposes of this Act, the term, charge, is that amount that a hospital would expect to charge for an inpatient diagnostic-related group. Any charge that is required by this Act 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.

     Signed March 1, 2005

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