By Bailey                                              H.B. No. 761
       74R2294 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 on
   1-13  request a written estimate to a prospective patient of the average
   1-14  charges for health services related to a particular diagnostic
   1-15  condition or medical procedure to be provided by the hospital to
   1-16  the prospective patient.
   1-17        (c)  A request for a cost estimate by a prospective patient
   1-18  must be in writing and include in the request a written medical
   1-19  diagnosis made by a health care practitioner licensed to provide
   1-20  the diagnosis.   A hospital may require the prospective patient to
   1-21  provide the hospital with information about the prospective
   1-22  patient's age and gender and any other information that will allow
   1-23  the hospital to provide a more accurate estimate.
   1-24        (d)  A hospital shall provide notice to the public that the
    2-1  hospital will provide an estimate of charges for diagnostic
    2-2  conditions or medical procedures.  Notice may be given by posting
    2-3  in a public area of the hospital a statement of the procedure for
    2-4  requesting a cost estimate.
    2-5        (e)  A hospital shall  publish notice that the hospital will
    2-6  provide an estimate of charges for diagnostic conditions or medical
    2-7  procedures in any advertisement or promotional material of the
    2-8  hospital.
    2-9        Sec. 241.007.  REPORT.  The commissioner of health shall
   2-10  prepare a report regarding the status and operations of hospitals
   2-11  in the state.  The report must be submitted to the governor and
   2-12  legislature not later than February 1 of each odd-numbered year.
   2-13  The report must contain information, analysis, and recommendations
   2-14  concerning:
   2-15              (1)  the status of the health care cost problem,
   2-16  including the costs faced by employers and individuals;
   2-17              (2)  the status of competitive forces in the market for
   2-18  health services, the market for health plans, and the effect of
   2-19  competitive forces on the health care cost problem;
   2-20              (3)  the feasibility and cost-effectiveness of
   2-21  facilitating development of strengthened competitive forces through
   2-22  state initiatives;
   2-23              (4)  the feasibility of limiting health care costs by
   2-24  means other than competitive forces, including direct forms of
   2-25  government intervention, such as price regulation;
   2-26              (5)  the overall status of access to adequate health
   2-27  services by citizens of the state, the scope of financial and
    3-1  geographic barriers to access, the effect of competitive forces on
    3-2  access, and the prospects for access to health care services
    3-3  improving or degenerating; and
    3-4              (6)  the feasibility and cost-effectiveness of
    3-5  enhancing access to adequate health services for citizens of this
    3-6  state through state initiatives.
    3-7        SECTION 2.  Subchapter A, Chapter 242, Health and Safety
    3-8  Code, is amended by adding Sections 242.015 and 242.016 to read as
    3-9  follows:
   3-10        Sec. 242.015.  COST ESTIMATE.  (a)  The commissioner of human
   3-11  services shall require nursing homes to publish cost estimates for
   3-12  procedures and services provided by the nursing home.
   3-13        (b)  The commissioner shall require nursing homes to furnish
   3-14  on request a written estimate to a prospective patient of the
   3-15  average charges for health services related to a particular
   3-16  diagnostic condition or medical procedure to be provided by the
   3-17  nursing home to the prospective patient.
   3-18        (c)  A request for a cost estimate by a prospective patient
   3-19  must be in writing and include in the request a written medical
   3-20  diagnosis made by a health care practitioner licensed to provide
   3-21  the diagnosis.  A nursing home may require the prospective patient
   3-22  to provide the nursing home with information about the prospective
   3-23  patient's age and gender and any other information that will allow
   3-24  the nursing home to provide a more accurate estimate.
   3-25        (d)  A nursing home shall provide  notice to the public that
   3-26  the nursing home will provide an estimate of charges for diagnostic
   3-27  conditions or medical procedures.  Notice may be given by posting
    4-1  in a public area of the nursing home a statement of the procedure
    4-2  for requesting a cost estimate.
    4-3        (e)  A nursing home shall publish notice that the nursing
    4-4  home will provide an estimate of charges for diagnostic conditions
    4-5  or medical procedures in any advertisement or promotional material
    4-6  of the nursing home.
    4-7        Sec. 242.016.  REPORT.  The commissioner of human services
    4-8  shall prepare a report regarding the status and operations of
    4-9  nursing homes in the state.  The report must be submitted to the
   4-10  governor and legislature not later than February 1 of each
   4-11  odd-numbered year.  The report must contain information, analysis,
   4-12  and recommendations concerning:
   4-13              (1)  the status of the health care cost problem,
   4-14  including the costs faced by employers and individuals;
   4-15              (2)  the status of competitive forces in the market for
   4-16  health services, the market for health plans, and the effect of
   4-17  competitive forces on the health care cost problem;
   4-18              (3)  the feasibility and cost-effectiveness of
   4-19  facilitating development of strengthened competitive forces through
   4-20  state initiatives;
   4-21              (4)  the feasibility of limiting health care costs by
   4-22  means other than competitive forces, including direct forms of
   4-23  government intervention, such as price regulation;
   4-24              (5)  the overall status of access to adequate health
   4-25  services by citizens of the state, the scope of financial and
   4-26  geographic barriers to access, the effect of competitive forces on
   4-27  access, and the prospects for access to health care services
    5-1  improving or degenerating; and
    5-2              (6)  the feasibility and cost-effectiveness of
    5-3  enhancing access to adequate health services for citizens of this
    5-4  state through state initiatives.
    5-5        SECTION 3.  This Act takes effect September 1, 1995.
    5-6        SECTION 4.  The importance of this legislation and the
    5-7  crowded condition of the calendars in both houses create an
    5-8  emergency and an imperative public necessity that the
    5-9  constitutional rule requiring bills to be read on three several
   5-10  days in each house be suspended, and this rule is hereby suspended.