"NEW SECTION.  Sec. 1   (1) The department of social and health services shall conduct a vendor rate study of home care agencies. The study shall include an analysis of using a value-based reimbursement system that provides higher reimbursement rates for providers that demonstrate:
     (a) Higher percentage of revenue devoted to labor costs;
     (b) Higher supervisor-to-client ratios;
     (c) Best practices financial audits;
     (d) Accurate reporting of hours;
     (e) Ethical consumer marketing practices;
     (f) Adequate levels of liability insurance;
     (g) Compliance with labor and employment laws;
     (h) Process to enhance quality and safety;
     (i) Not using public funds to promote or deter, encourage or discourage employees to exercise their rights under section 7 of the federal labor relations act;
     (j) Meeting the needs of high acuity clients;
     (k) Increasing client contact by agency staff;
     (l) Identification of protocols and practices that are known to improve client outcomes; and
     (m) Contractually mandated or collectively bargained labor costs.
     (2) The governor shall appoint a stakeholder committee made up of five persons familiar with the operation of home care agencies to assist the department in conducting the analysis. The five persons shall be representatives from (a) a for-profit agency, (b) a not-for-profit agency; (c) an organization representing consumers, (d) an organization representing home care workers, and (e) the area agencies on aging.
     (3) The department shall report its findings, including a cost analysis of implementing a value-based reimbursement, to the legislature by December 15, 2005."