(a)  No corporation organized under this chapter shall compensate any provider of outpatient service by using the restricted annual rate method of payment.

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Terms Used In Rhode Island General Laws 27-19-43

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • provider: means a healthcare professional or a healthcare facility. See Rhode Island General Laws 27-19-1

(b)  The “restricted annual rate method of payment” is defined as any method of payment that sets, as all or part of its payment scheme, a total payment limit for mental health and/or substance abuse treatment services for each person seeking treatment based on a per person per unit of time criterion that disregards the extent of treatment and/or degree of services rendered.

(c)  This prohibition shall not be construed to prohibit or limit capitation or other risk-sharing agreements between providers and insurers otherwise permissible by law.

History of Section.
P.L. 1998, ch. 352, § 2.