1.2relating to health; directing medical education and research funds to the University
1.3of Minnesota;amending Minnesota Statutes 2012, section 62J.692, subdivision 4.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2012, section 62J.692, subdivision 4, is amended to read:
1.6    Subd. 4. Distribution of funds. (a) The commissioner shall annually distribute the
1.7available medical education funds to all qualifying applicants based on a distribution
1.8formula that reflects a summation of two factors:
1.9    (1) a public program volume factor, which is determined by the total volume of
1.10public program revenue received by each training site as a percentage of all public
1.11program revenue received by all training sites in the fund pool; and
1.12    (2) a supplemental public program volume factor, which is determined by providing
1.13a supplemental payment of 20 percent of each training site's grant to training sites whose
1.14public program revenue accounted for at least 0.98 percent of the total public program
1.15revenue received by all eligible training sites. Grants to training sites whose public
1.16program revenue accounted for less than 0.98 percent of the total public program revenue
1.17received by all eligible training sites shall be reduced by an amount equal to the total
1.18value of the supplemental payment.
1.19    Public program revenue for the distribution formula includes revenue from medical
1.20assistance, prepaid medical assistance, general assistance medical care, and prepaid
1.21general assistance medical care. Training sites that receive no public program revenue
1.22are ineligible for funds available under this subdivision. For purposes of determining
1.23training-site level grants to be distributed under this paragraph (a), total statewide average
1.24costs per trainee for medical residents is based on audited clinical training costs per trainee
2.1in primary care clinical medical education programs for medical residents. Total statewide
2.2average costs per trainee for dental residents is based on audited clinical training costs
2.3per trainee in clinical medical education programs for dental students. Total statewide
2.4average costs per trainee for pharmacy residents is based on audited clinical training costs
2.5per trainee in clinical medical education programs for pharmacy students. Training sites
2.6whose training site level grant is less than $1,000, based on the formula described in this
2.7paragraph, are ineligible for funds available under this subdivision.
2.8(b) $5,350,000 of the available medical education funds shall be distributed as
2.9follows:
2.10(1) $1,475,000 to the University of Minnesota Medical Center-Fairview;
2.11(2) $2,075,000 to the University of Minnesota School of Dentistry; and
2.12(3) $1,800,000 to the Academic Health Center. $150,000 of the funds distributed
2.13to the Academic Health Center under this clause shall be used for a program to assist
2.14internationally trained physicians who are legal residents and who commit to serving
2.15underserved Minnesota communities in a health professional shortage area to successfully
2.16compete for family medicine residency programs at the University of Minnesota.
2.17    (b) (c) Funds distributed shall not be used to displace current funding appropriations
2.18from federal or state sources.
2.19    (c) (d) Funds shall be distributed to the sponsoring institutions indicating the amount
2.20to be distributed to each of the sponsor's clinical medical education programs based on
2.21the criteria in this subdivision and in accordance with the commissioner's approval letter.
2.22Each clinical medical education program must distribute funds allocated under paragraph
2.23(a) to the training sites as specified in the commissioner's approval letter. Sponsoring
2.24institutions, which are accredited through an organization recognized by the Department
2.25of Education or the Centers for Medicare and Medicaid Services, may contract directly
2.26with training sites to provide clinical training. To ensure the quality of clinical training,
2.27those accredited sponsoring institutions must:
2.28    (1) develop contracts specifying the terms, expectations, and outcomes of the clinical
2.29training conducted at sites; and
2.30    (2) take necessary action if the contract requirements are not met. Action may include
2.31the withholding of payments under this section or the removal of students from the site.
2.32    (d) (e) Any funds not distributed in accordance with the commissioner's approval
2.33letter must be returned to the medical education and research fund within 30 days of
2.34receiving notice from the commissioner. The commissioner shall distribute returned funds
2.35to the appropriate training sites in accordance with the commissioner's approval letter.
3.1    (e) (f) A maximum of $150,000 of the funds dedicated to the commissioner
3.2under section 297F.10, subdivision 1, clause (2), may be used by the commissioner for
3.3administrative expenses associated with implementing this section.