BILL ANALYSIS S.B. 979 By: Sibley (Berlanga) 04-28-95 Committee Report (Amended) BACKGROUND Finding convenient health care is a struggle for many Texans in rural an other underserved communities. Currently, 25 Texas counties are without a primary care physician and 229 Texas counties are designated medically underserved areas/medically underserved populations by the federal government. Furthermore, Texas has 134 full and partial counties which are federally designated primary care health professional shortage areas. PURPOSE S.B. 979 creates the Medically Underserved Community-State Matching Incentive Program to help increase the number of primary care physicians in medically underserved areas of this state. RULEMAKING AUTHORITY It is the committee's opinion that this bill grants additional rulemaking authority to the Texas Board of Health in Sections 2 and 6 of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 51.918(c), Education Code, to require the Center for Rural Health Initiatives to develop relief service programs for rural physicians and allied health personnel. Deletes the language stating that the programs are to facilitate ready access to continuing medical education, thereby requiring the Center to develop the programs. SECTION 2. Amends Sec. 61.506, Education Code, as follows: (a) Requires the Family Practice Residency Advisory Committee (advisory committee) to work to enhance approved family practice residency programs and to establish not less than three or more than five pilot programs to provide a major source of indigent health care and to train family practice resident physicians. Deletes a reference to the advisory committee working with a statewide advisory committee established by the Texas Board of Health (Board). (b) Requires each of the programs to provide services to an economically depressed or rural medically underserved area of the state. Requires one program to be located in an urban area, one program to be located in a rural area, and one program to be located in the border region as defined by Section 481.001, Government Code. Deletes the language requiring the three pilot programs to be located in an area that reflects the diversity of the state. Subsections (c) and (d) make conforming changes to reflect the deletion in Subsection (a) of the statewide advisory committee. (f) Adds "or by board rule" and deletes the reference to "under Section 31.015, Health and Safety Code" in regard to the provision that the advisory committee must use financial reports, audits, and performance evaluations currently required under this subchapter, or by board rule, to annually assess the financial feasibility and effective performance of the pilot programs. Subsections (g) and (h) make conforming changes to reflect the deletion in subsection (a) of the statewide advisory committee. SECTION 3. Adds Sec. 61.531(b) and (c), Education Code, as follows: (b) States that not more than 20 percent of physicians receiving repayment assistance may be employed by the state agencies listed in Section 61.532(a)(2), Education Code. (c) Prohibits a physician who receives repayment assistance from receiving assistance under Chapter 46, Health and Safety Code. SECTION 4. Amends Sec. 61.532(a), Education Code, to add a requirement that to be eligible to receive payment assistance, a physician must apply to the Texas Higher Education Coordinating Board (coordinating board) and complete at least one year of medical practice for an approved family practice residency training program as a clinical faculty member and have completed training in an approved program by July 1, 1994, or as a resident. SECTION 5. Amends Sec. 61.539(b), Education Code, to provide that Sections 403.094(h) and 403.095, Government Code, do not apply to the funds set aside in this section. SECTION 6. Adds Chapter 46 to Title 2B, Health and Safety Code, as follows: CHAPTER 46. MEDICALLY UNDERSERVED COMMUNITY-STATE MATCHING INCENTIVE PROGRAM Sec. 46.001. DEFINITIONS. Defines "medically underserved community," "physician," "primary care," and "start-up money." Sec. 46.002. PROGRAM. (a) Requires the Texas Board of Health (Board) to establish and administer a program under this chapter to increase the number of physicians providing primary care in medically underserved communities. (b) Allows an eligible community to sponsor a physician who has agreed to provide primary care in the community by contributing to start-up money for the physician and having that contribution matched in whole or in part by state money appropriated to the Board for that purpose. (c) Allows a participating community to provide start-up money to an eligible physician over a two-year period. (d) Prohibits the Board from paying more than $25,000 to a community in any fiscal year, unless the Board makes a specific finding on need by the community. Sec. 46.003. ELIGIBILITY. (a) Requires a community to apply for money and provide evidence satisfactory to the Board that it has entered into an agreement with a physician that the physician provide primary care in the community for a period of at least two years to be eligible to receive funds from the Board. Sec. 46.004. RULES. Allows the Board to adopt rules necessary for the administration of this subchapter, including specified eligibility criteria and conditions; procedures for disbursement of money by the Board; the form and manner in which a community must make its contribution to the start-up money; and the contents of an agreement to be entered into by the parties. Sec. 46.005. FUNDING. Allows the Board to accept gifts, grants, and donations for the purposes of this chapter. SECTION 7. Requires the Texas Higher Education Coordinating Board to report to the legislature by December 1, 1996, on the allocation of money to the family practice residency training pilot programs, and the progress in those programs in specified areas. SECTION 8. Effective date: September 1, 1995. SECTION 9. Emergency clause. EXPLANATION OF AMENDMENT Committee Amendment #1 amends S.B. 979 as follows: (1) Amends Section 61.537(a), Education Code, to authorize the Family Practice Residency Advisory Committee to consider, among other criteria, whether the physician is or will be providing service in a medically underserved area, when the advisory committee is establishing priorities among eligible physicians for repayment assistance. (2) Clarifies Sec. 46.002, Subtitle B, Title 2, Health and Safety Code, by striking the words "an eligible," for which there is no definition in this chapter, and substituting "a medically underserved," which is defined. This language is used regarding the type of communities in which the programs will be established. (3) Amends Sec. 46.002, Subtitle B, Title 2, Health and Safety Code, to state that an eligible community may sponsor a physician who has completed a primary care residency program within seven years of application to this program. This clause was added because studies have shown that if a physician is going to move, the move is done within six years of completion of the residency program. (4) Adds Sec. 46.002(e), Subtitle B, Title 2, Health and Safety Code, to require the Board to prioritize the communities eligible for assistance under this chapter in order to assure that the neediest communities are provided grants. Approximately 88% of Texas counties are currently designated as totally or partially underserved, and by prioritizing the areas, the money will go where it is most needed. (5) Amends Sec. 46.004, Subtitle B, Title 2, Health and Safety Code, to require the Board to adopt the rules necessary for the administration of this chapter, rather than allow the Board to do so. This simply guarantees the administration of the programs set forth in this chapter. (6) Amends Sec. 46.004, Subtitle B, Title 2, Health and Safety Code, to add to the standards of the rules to be adopted by the Board. Adds that the contents of the agreement to be entered into by the parties must include at least a credit check, community retention of property and equipment for seven years, and the requirement that the participating physicians practice full-time. Because this is a financial sponsorship, these requirements provide protection for the communities. SUMMARY OF COMMITTEE ACTION S.B. 979 was considered by the Public Health Committee in a formal meeting on April 28, 1995. The committee considered one amendment to the bill. The amendment was adopted without objection. The bill was reported favorably as amended, with the recommendation that it do pass and be printed, by a record vote of 7 AYES, 0 NAYS, 0 PNV, and 2 ABSENT.