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.