By: Bailey H.B. No. 233 73R1604 KLL-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to cost estimates for procedures and services by hospitals 1-3 and nursing homes and to reports on the status of health care 1-4 services. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Subchapter A, Chapter 241, Health and Safety 1-7 Code, is amended by adding Sections 241.006 and 241.007 to read as 1-8 follows: 1-9 Sec. 241.006. COST ESTIMATE. (a) The commissioner of 1-10 health shall require hospitals to publish cost estimates for 1-11 procedures and services provided by the hospital. 1-12 (b) The commissioner shall require hospitals to furnish a 1-13 written estimate to a prospective patient of the average charges 1-14 for health services related to a particular diagnostic condition or 1-15 medical procedure to be provided by the hospital to the prospective 1-16 patient. 1-17 (c) When a hospital provides cost estimates, a request for 1-18 an estimate by a prospective patient must be in writing and include 1-19 in the request a written medical diagnosis made by a health care 1-20 practitioner licensed to provide the diagnosis. A hospital may 1-21 require the prospective patient to provide the hospital with 1-22 information about the prospective patient's age and gender and any 1-23 other information that will allow the hospital to provide a more 1-24 accurate estimate. 2-1 (d) A hospital shall provide cost estimates of health care 2-2 services under this section by providing notice to the public that 2-3 the hospital will provide an estimate of charges for diagnostic 2-4 conditions or medical procedures. Notice may be given by posting a 2-5 statement of the procedure for requesting a cost estimate in a 2-6 public area of the hospital. 2-7 (e) A hospital shall provide cost estimates of health care 2-8 services under this section by publishing a notice of the service 2-9 in any advertisement or promotional material of the hospital. 2-10 Sec. 241.007. REPORT. The commissioner of health shall 2-11 prepare a report regarding the status and operations of hospitals 2-12 in the state. The report must be submitted to the governor and 2-13 legislature not later than February 1 of each odd-numbered year. 2-14 The report must contain information, analysis, and recommendations 2-15 concerning: 2-16 (1) the status of the health care cost problem, 2-17 including the costs faced by employers and individuals; 2-18 (2) the status of competitive forces in the market for 2-19 health services, the market for health plans, and the effect of 2-20 competitive forces on the health care cost problem; 2-21 (3) the feasibility and cost-effectiveness of 2-22 facilitating development of strengthened competitive forces through 2-23 state initiatives; 2-24 (4) the feasibility of limiting health care costs by 2-25 means other than competitive forces, including direct forms of 2-26 government intervention, such as price regulation; 2-27 (5) the overall status of access to adequate health 3-1 services by citizens of the state, the scope of financial and 3-2 geographic barriers to access, the effect of competitive forces on 3-3 access, and the prospects for access to health care services 3-4 improving or degenerating; and 3-5 (6) the feasibility and cost-effectiveness of 3-6 enhancing access to adequate health services for citizens of Texas 3-7 through state initiatives. 3-8 SECTION 2. Subchapter A, Chapter 242, Health and Safety 3-9 Code, is amended by adding Sections 242.015 and 242.016 to read as 3-10 follows: 3-11 Sec. 242.015. COST ESTIMATE. (a) The commissioner of 3-12 health shall require nursing homes to publish cost estimates for 3-13 procedures and services provided by the nursing home. 3-14 (b) The commissioner shall require nursing homes to furnish 3-15 a written estimate to a prospective patient of the average charges 3-16 for health services related to a particular diagnostic condition or 3-17 medical procedure to be provided by the nursing home to the 3-18 prospective patient. 3-19 (c) When a hospital provides cost estimates, a request for 3-20 an estimate by a prospective patient must be in writing and include 3-21 in the request a written medical diagnosis made by a health care 3-22 practitioner licensed to provide the diagnosis. A nursing home may 3-23 require the prospective patient to provide the nursing home with 3-24 information about the prospective patient's age and gender and any 3-25 other information that will allow the nursing home to provide a 3-26 more accurate estimate. 3-27 (d) A nursing home shall provide cost estimates of health 4-1 care services under this section by providing notice to the public 4-2 that the nursing home will provide an estimate of charges for 4-3 diagnostic conditions or medical procedures. Notice may be given 4-4 by posting a statement of the procedure for requesting a cost 4-5 estimate in a public area of the nursing home. 4-6 (e) A nursing home shall provide cost estimates of health 4-7 care services under this section by publishing a notice of the 4-8 service in any advertisement or promotional material of the nursing 4-9 home. 4-10 Sec. 242.016. REPORT. The commissioner of health shall 4-11 prepare a report regarding the status and operations of nursing 4-12 homes in the state. The report must be submitted to the governor 4-13 and legislature not later than February 1 of each odd-numbered 4-14 year. The report must contain information, analysis, and 4-15 recommendations concerning: 4-16 (1) the status of the health care cost problem, 4-17 including the costs faced by employers and individuals; 4-18 (2) the status of competitive forces in the market for 4-19 health services, the market for health plans, and the effect of 4-20 competitive forces on the health care cost problem; 4-21 (3) the feasibility and cost-effectiveness of 4-22 facilitating development of strengthened competitive forces through 4-23 state initiatives; 4-24 (4) the feasibility of limiting health care costs by 4-25 means other than competitive forces, including direct forms of 4-26 government intervention, such as price regulation; 4-27 (5) the overall status of access to adequate health 5-1 services by citizens of the state, the scope of financial and 5-2 geographic barriers to access, the effect of competitive forces on 5-3 access, and the prospects for access to health care services 5-4 improving or degenerating; and 5-5 (6) the feasibility and cost-effectiveness of 5-6 enhancing access to adequate health services for citizens of Texas 5-7 through state initiatives. 5-8 SECTION 3. This Act takes effect September 1, 1993. 5-9 SECTION 4. The importance of this legislation and the 5-10 crowded condition of the calendars in both houses create an 5-11 emergency and an imperative public necessity that the 5-12 constitutional rule requiring bills to be read on three several 5-13 days in each house be suspended, and this rule is hereby suspended.