BILL ANALYSIS H.B. 3120 By: B. Hunter 04-19-95 Committee Report (Unamended) BACKGROUND Of the approximately 100,000 beds in Texas nursing facilities, Medicaid reimbursed providers for the cost of operating 67,740 beds in FY 1994. The number of Medicaid-paid beds has remained fairly constant since the mid-1980s when a rider was inserted in the General Appropriations Bill effectively placing a moratorium on the construction of new facilities. The cap on the number of new beds, however, only applies to counties where the occupancy rate has been at less than 85% for each of the previous six months. The rider has remained in the spending bill since 1987, in the appropriations for the Department of Human Services (DHS) because DHS administers the program. Since the demise of the Health Facilities Commission in 1985, the Board of Human Services has supervised the allocation of new beds. Concerns have been raised that areas where need for such facilities has been demonstrated must forego development of new beds until another facility agrees to relinquish some or all of its Medicaid nursing bed allotment. PURPOSE H.B. 3120 would allow the Dept. of Human Services to waive the restrictions on implementing new Medicaid nursing facility beds for certain facilities. In particular, a limited number of beds for use in promoting research by the Texas Tech medical school relating to Alzheimer's disease and its treatment would be permitted. RULEMAKING AUTHORITY It is the committee's opinion that H.B. 3120 does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 32, Human Resources Code, by adding new Section 32.0245 as follows: Sec. 32.0245. NURSING HOME BEDS FOR CERTAIN FACILITIES TREATING ALZHEIMER'S DISEASE. Directs DHS to waive restrictions imposed by state law on contracting under the Medicaid program for nursing home beds based on the occupancy rate in a certain geographical area if a facility: (1) is affiliated with a state-operated medical school; (2) is participating in a research program for the care and treatment of Alzheimer's patients; and (3) is designed to separate and treat Alzheimer's disease by stage or functional level. SECTION 2. Permits DHS to seek a federal waiver, if necessary, to implement this Act. SECTION 3. Emergency clause, effective in 90 days. SUMMARY OF COMMITTEE ACTION The House Human Services Committee convened in a public hearing on April 10, 1995. The Chairman laid out H.B. 3120 and asked Rep. Hunter to explain the bill. The following witnesses testified for H.B. 3120: Dr. Keith Perry, Abilene; Exa Fay Hooten, Sears Windcrest Center; David Latimer, Texas Ass'n of Homes and Services for the Aging. Tony Venza, Texas Department of Human Services testified as neutral on H.B. 3120. No one testified against H.B. 3120 and the bill was left pending. In a formal meeting on April 19, 1995, the committee took up H.B. 3120 which had been pending. Rep. Denny moved that the committee report H.B. 3120 favorably without amendment and send the bill to the Committee on the Local and Consent Calendars. The motion prevailed by a record vote of 9 Ayes, 0 Nays, 0 PNV and 0 Absent.