LEGISLATIVE BUDGET BOARD

Austin, Texas

 

FISCAL NOTE

74th Regular Session

 

March 30, 1995

 

TO:      Honorable Judith Zaffifini, Chair

            Committee on Health & Human Services

            Senate

            Austin, Texas

IN RE: Senate Bill No. 673

            By: Madla, et al.

 

FROM: John Keel, Director

 

In response to your request for a Fiscal Note on Senate Bill No. 673 (Relating to health care, including powers and duties of the center for rural health initiatives, continuing medical education, the delegation of prescription drug orders, services and patient protection in the Medicaid program, standards for utilization review, medically under served areas, health facilities and services for the elderly and disabled.) this office has determined the following:

 

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

 

The bill contains the following sections: Section 1, providing that the Act may be cited as the Omnibus Rural Health Services Enhancement and Patient Protection Act; Section 2, which relates to duties and powers of the Center for Rural Health Initiatives; Section 3, which deals with the health professions resources center; Sections 4, 5, and 6, which address the practice of physician assistants and the delegation of powers by physicians to physician assistants under their supervision; Section 7, the Medical Assistance Patient Protection Act, dealing with managed care plans; Section 8, which addresses utilization reviews; Section 9, which relates to relief service programs for rural physicians and allied health personnel; Section 10, which relates to facilities and services for the elderly and disabled, Section 11, regarding long term care and related facilities; and Section 12, which provides for a Managed Health Care Advisory Committee.

 

Areas that would be associated with costs include:

 

Section 2, which requires the Center for Rural Health Initiatives to develop a quality assessment program to evaluate health outcomes.

Section 3, which requires the health professions resource center to develop a clearinghouse for health professionals seeking collaborative practice in rural or medically underserved areas.

Sections 4, 5, and 6, which address the practice of physician assistants and the delegation of powers by physicians to physician assistants would require additional complaint investigation/enforcement activity by the Board that licenses physicians and physician assistants.

 

Section 3 also would permit the health professions resource center to charge a fee for services rendered.  This revenue gain is represented in the table below.

 

Section 7 includes language requiring managed care plans to accept as providers historical Medicaid providers who agree to terms and conditions of the plan.  The fiscal implications of this provision cannot be determined.

 

The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows:

 

Fiscal Year

Probable Cost Out of General Revenue Fund 001

Probable Revenue Gain from General Revenue Fund 001

Probable Cost Out of GR Consolidated - Medical Registration Fund 055

Change in Number of State Employees from FY 1995

1996

$150,091

$76,839

$33,308

5.0

1997

137,131

70,359

33,034

5.0

1998

137,131

70,359

33,034

5.0

1999

137,131

70,359

33,034

5.0

2000

137,131

70,359

33,034

5.0

 

 

Similar annual fiscal implications would continue as long as the provisions of the bill are in effect.

 

No fiscal implication to units of local government is anticipated.

 

 

Source:            Department of Human Services, Department of Health

                        Health and Human Services Commission, Board of Medical Examiners

                        LBB Staff: JK, KF, DF