BILL ANALYSIS


                                                     C.S.S.B. 192
                                                    By: Henderson
                                                    State Affairs
                                                         01-23-95
                                   Committee Report (Substituted)
BACKGROUND

The M.D. Anderson Cancer Center (MDA) was statutorily created in
1941 to specialize in the research, treatment and prevention of
cancer and related diseases.  Since that time, it has become an
internationally recognized center of excellence in these areas.  A
recent shift in the health care marketplace, however, has hurt
state-operated specialty hospitals.  Consequently, total revenues
at MDA dropped 10 percent in the last fiscal year and are dropping
at the same rate this year.

Consultants hired by MDA have made a number of recommendations for
its future, including both internal measures, such as employment
retrenchment, and external measures, such as reducing state
regulations that apply to MDA and not to private sector
counterparts.

PURPOSE

As proposed, S.B. 192 sets forth more flexible regulations and
responsibilities and increases internal programs of the University
of Texas M.D. Anderson Cancer Center concerning indigent patient
treatment, financial responsibilities, incentive retirement plans,
and freer methods for acquiring goods and services.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the to the president of the University of Texas M.D. Anderson
Cancer Center in SECTION 1 (Section 73.115(d), Education Code) of
this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 73.106, Education Code, as follows:

     Sec. 73.106.  PATIENTS.  Requires this subchapter to govern
     the admission of patients to the institution and its
     substations, the support of patients, and other matters
     relating to patients, without exception.
SECTION 2. Amends Section 73.108(c), Education Code, to authorize,
rather than require, the application to be accompanied by a written
request for the patient's admission by the patient's attending
physician.

SECTION 3. Amends Chapter 73C, Education Code, by adding Sections
73.112-73.115, as follows:

     Sec. 73. 112.  TREATMENT OF INDIGENT PATIENTS.  (a) Authorizes
     the institution to enter into a contract with a county or a
     hospital district to provide treatment to residents who are
     eligible for health care assistance.
     
     (b) Prohibits the liability of a county or a hospital
       district from exceeding the responsibility of the county or
       hospital district as provided for in Chapter 61, Health and
       Safety Code, unless contractually agreed to by the county or
       hospital district.
     Sec. 73.113.  SUFFICIENCY OF INSTITUTIONAL FUNDS, FEES, AND
     PATIENT BASE.  Requires the institution to ensure that its
     institutional funds, hospital and clinic fees, and patient
     base are sufficient to fund and achieve the mission of the
     institution and protect the state's investment in the
     institution.
     
     Sec. 73.114.  INCENTIVE RETIREMENT PLANS.  (a) Authorizes the
     institution to offer incentive retirement plans to employees.
     
     (b) Requires incentives to be paid from institutional funds
       or hospital or clinic fees.
       
       (c) Requires any institutional plan for incentive retirement
       to be filed with the Legislative Budget Board within 61 days
       of the plan's implementation.   
       
       (d) Prohibits employees receiving retirement incentives from
       being rehired unless specifically approved by the president
       of the institution.
     Sec. 73.115.  ACQUISITION OF GOODS AND SERVICES. (a)
     Authorizes the institution to acquire goods or services by any
     method that provides the best value to them.  
     
     (b) Sets forth factors the institution is required to
       consider in selecting a vendor.
       
       (c) Authorizes the state auditor to audit purchases of goods
       or services of the institution.
       
       (d) Authorizes the institution to adopt necessary or
       desirable rules and procedures for the acquisition of goods
       and services.
       
       (e) Provides that under conflict, this section prevails over
       any other law.
SECTION 4. Amends Chapter 552B, Health and Safety Code, by adding
Section 552.020, as follows:

     Sec. 552.020.  APPLICATION.  Provides that this subchapter
     does not apply to the institution, with an exception.
SECTION 5. Provides that this Act takes immediate effect, with the
exception of Sections 1 and 4 and Section 73.112, Education Code,
which take effect September 1, 1995.
SECTION 6. Emergency clause.