JKC H.B. 2321 75(R)    BILL ANALYSIS


HUMAN SERVICES
H.B. 2321
By: Palmer
4-14-97
Committee Report (Unamended)



BACKGROUND 

Since 1983, the Department of Human Services (DHS) has been required to
enforce a moratorium on the certification of Medicaid beds for nursing
homes.  This policy has effectively prevented any non-Medicaid-certified
nursing homes from entering the program.  As a result, elderly residents
at these facilities whose private funds are exhausted are being forced to
relocate to certified homes that sometimes provide less quality care.  At
the same time, the moratorium has prevented quality, Medicaid facilities
with high occupancy rates from requesting new beds.  

PURPOSE

This bill will gradually phase out the Medicaid moratorium by granting DHS
the power to adopt rules regarding decertification of unused Medicaid beds
and reallocation of such beds to other certified nursing homes.  It also
allows the agency to certify existing non-Medicaid facilities that have
been unable to achieve such status under current law.   

RULEMAKING AUTHORITY

Rulemaking authority is expressly given to DHS in SECTION 1, Section
32.0213(a). 

SECTION BY SECTION ANALYSIS

SECTION 1.Amends Subchapter B, Chapter 32 of the Human Resources Code by
adding Section 32.0213. 

 Sec. 32.0213(a)Grants DHS the power to establish procedures for
decertifying unoccupied, Medicaid nursing home beds. 
  
 Sec. 32.0213(b)Permits Medicaid certified nursing homes to request
certification of additional beds after they meet an annual occupancy rate
of 80 percent over three consecutive years. 

 Sec. 32.0213(c)Allows the Department of Human Services to waive the
occupancy rate requirement in (b) for newly certified Medicaid nursing
home facilities. 

SECTION 2.Effective Date: September 1, 1997.

SECTION 3. Emergency Clause.