By Patterson S.C.R. No. 59 74R5149 RNS-D CONCURRENT RESOLUTION 1-1 WHEREAS, In its report to the 74th Texas Legislature, the 1-2 Senate Health and Human Services Committee concluded that there is 1-3 a pressing need for an audit of the Medicaid program, that it may 1-4 be in the best interest of the state if nursing homes were dually 1-5 certified for Medicare and Medicaid, and that significant savings 1-6 might accrue if certain state schools and hospitals were 1-7 privatized; and 1-8 WHEREAS, The Medicaid Fraud Control Unit, Office of the 1-9 Attorney General, contends that fraud accounts for approximately 10 1-10 percent of Medicaid program costs; therefore, a targeted audit 1-11 focusing on areas not audited regularly or previously could 1-12 potentially save a substantial amount of state revenue by helping 1-13 to reduce fraud; and 1-14 WHEREAS, It is the responsibility of the federal Medicare 1-15 program to pay for the first 100 days of skilled nursing facility 1-16 care after hospital discharge, but if a facility is not dually 1-17 certified these costs are assumed by the state Medicaid program; 1-18 therefore, dual certification of facilities to serve both Medicare 1-19 and Medicaid clients could potentially save state revenue by 1-20 allowing the federally funded program to assume these costs; and 1-21 WHEREAS, Privatization of state school campus operations 1-22 potentially could save an estimated $14.1 million in general 1-23 revenue per fiscal year, while privatization of state hospitals 1-24 potentially could save an estimated $4.87 million in general 2-1 revenue for the 1996-1997 biennium; now, therefore, be it 2-2 RESOLVED, That the 74th Legislature of the State of Texas 2-3 hereby request the State Medicaid Office, in conjunction with the 2-4 appropriate state agencies, to develop a proposal for a 2-5 comprehensive or targeted audit of the Medicaid program; and, be it 2-6 further 2-7 RESOLVED, That the State Medicaid Office submit the proposal 2-8 for a program audit to the Senate Health and Human Services 2-9 Committee not later than March 1, 1995; and, be it further 2-10 RESOLVED, That the State Medicaid Office determine the 2-11 feasibility of requiring nursing homes providing Medicaid services 2-12 to be dually certified for Medicare, as is currently the practice 2-13 in Primary Home Care and Nursing Facility Waiver programs; and, be 2-14 it further 2-15 RESOLVED, That the Council on Competitive Government study 2-16 the feasibility and ramifications of privatizing state schools for 2-17 persons with mental retardation and of privatizing state hospitals 2-18 for persons with mental illness; and, be it further 2-19 RESOLVED, That the secretary of state forward official copies 2-20 of this resolution to the State Medicaid Office and to the Council 2-21 on Competitive Government.