article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Medicare Telemedicine and Medical Informatics Demonstration Act of 1996''. SEC. 2. INFORMATICS, TELEMEDICINE, AND EDUCATION DEMONSTRATION PROJECT. (a) Purpose and Authorization.-- (1) In general.--Under section 1142 of the Social Security Act and consistent with this section, the Secretary of Health and Human Services, through the Agency for Health Care Policy and Research, shall make a grant to an eligible grantee to provide for a project to demonstrate the application of high- capacity computing and advanced networks to the provision of health care to both residents of medically underserved rural areas and residents of medically underserved inner-city areas. (2) Focus.--The project shall focus on-- (A) improvements in primary care (and prevention of complications) for those residents with diabetes (mellitus), and (B) those residents who are Medicare beneficiaries. (3) Duration of project.--The project shall be conducted over a 4-year period. (4) Authorization of appropriations; medicare and medicaid waiver authority.--The total amount of Federal expenditures that may be provided pursuant to this section under the project shall not exceed $30,000,000. Subject to such limitation, the Secretary may waive such provisions of title XVIII and XIX of the Social Security Act as may be appropriate in order to permit and demonstrate the provision of Medicare and Medicaid funding under the project. (b) Objectives of Project.--The objectives of the project include the following: (1) Improving patient access to and compliance with appropriate care guidelines for chronic diseases through direct telecommunications link with information networks in order to improve patient quality-of-life and reduce overall health care costs. (2) Developing a curriculum to train, and providing standards for credentialing and licensure of, health professionals (particularly primary care health professionals) in the use of medical informatics and telecommunciations. (3) Demonstrating the application of advanced technologies, such as video-conferencing from a patient's home, remote monitoring of a patient's medical condition, interventional informatics, and applying individualized, automated care guidelines, to assist primary care providers in assisting patients with chronic illnesses in a home setting. (4) Application of medical informatics to residents with limited English language skills. (5) Developing standards in the application of telemedicine and medical informatics. (6) Developing a model for the cost-effective delivery of primary and related care both in a managed care environment and in a fee-for-service environment. (c) Eligible Grantee.--For purposes of this section, the term ``eligible grantee'' means a consortium that includes at least one tertiary care hospital, at least one medical school, and at least one regional telecommunications provider and that meets the following requirements: (1) The consortium is located in an area with a high concentration of medical schools and tertiary care facilities and has appropriate arrangements (within or outside the consortium) with such schools and facilities, universities, and telecommunications providers, in order to conduct the project. (2) The consortium submits to the Secretary an application at such time, in such manner, and containing such information as the Secretary may require, including a description of the use to which the consortium would apply any amounts received under the project and the source and amount of non-Federal contribution towards the project. (3) The consortium demonstrates that it will provide for a contribution toward the project from non-Federal funds or resources in an amount that is not less than 50 percent of the total amount to be expended in carrying out the project. (d) Use of Funds.-- (1) In general.--Federal payments made available to an eligible grantee under this section shall be used for the development and operation of telemedicine and medical informatics systems and related activities under the project. (2) Specific uses permitted.--Such payments may be used for any of the following: (A) The acquisition of telemedicine equipment for use in patients' homes (but only in the case of patients located in medically underserved areas). (B) Curriculum development and training of health professionals in medical informatics and telemedicine. (C) Payment of telecommunications costs (including salaries and maintenance of equipment), including costs of telecommunications between patients' homes and the eligible grantee and between the grantee and other entities under the arrangements described in subsection (c)(1). (D) Payments to practitioners and providers under the Medicare and Medicaid programs. (3) Prohibited uses.--Such payments may not be used for any of the following: (A) The purchase or installation of transmission equipment (other than such equipment used by health professionals to deliver medical informatics services under the project). (B) The establishment or operation of a telecommunications common carrier network. (C) Construction (except for minor renovations related to the installation of reimbursable equipment) or the acquisition or building of real property. (e) Reports.--The Secretary shall submit to the Committees on Ways and Means and Commerce of the House of Representatives and the Committees on Finance and Labor and Human Resources of the Senate interim reports on the project and a final report on the project within 6 months after the conclusion of the project. The final report shall include an evaluation of the impact of the use of telemedicine and medical informatics on improving access of medicare and medicaid beneficiaries to health care services, on reducing the costs of such services, and on improving the quality of life of such beneficiaries. (f) Definitions.--For purposes of this section: (1) Interventional informatics.--The term ``interventional informatics'' means using information technology and virtual reality technology to intervene in patient care. (2) Medical informatics.--The term ``medical informatics'' means the storage, retrieval, and use of biomedical and related information for problem solving and decision-making through computing and communications technologies. (3) Project.--The term ``project'' means the demonstration project under this section. (4) Secretary.--The term ``Secretary'' means the Secretary of Health and Human Services.
summary: Medicare Telemedicine and Medical Informatics Demonstration Act of 1996 - Directs the Secretary of Health and Human Services, through the Agency for Health Care Policy and Research, to make a grant to a consortium meeting specified criteria to provide for a project for the development and operation of telemedicine and medical informatics systems to demonstrate the application of high-capacity computing and advanced networks to the provision of health care to residents of medically underserved rural and inner-city areas. Requires the project to focus on Medicare beneficiaries and on improvements in primary care (and prevention of complications) for residents with diabetes (mellitus). Lists project objectives, which include improving patient access to and compliance with appropriate care guidelines for chronic diseases through direct telecommunications link with information networks in order to improve patient quality-of-life and reduce overall health care costs. Authorizes appropriations.