BG H.B. 2984 75(R)BILL ANALYSIS PUBLIC HEALTH H.B. 2984 By: Hunter 4-16-97 Committee Report (Unamended) BACKGROUND Chronically ill children constitute one of the highest cost groups for numerous state programs, including public assistance and education. The number of children in need of continuous long term medical care is expected to increase as is the cost of care and special educational requirements. A highly regarded non-profit entity, The House That Kerry Built, has developed a cost-effective model for care and education of such children and their families. Before the state adopts a long term health and education program for such children, it needs reliable information. A limited term pilot program under oversight of the Board of Health could provide the legislature the information needed for this long term plan. PURPOSE HB 2984 establishes a limited term pilot program to address the needs of medically fragile children in this state and provide reliable information to the legislature for future establishment of cost efficient methods of providing for the health and education needs of these children and their families. RULEMAKING AUTHORITY It is the committee's opinion that this bill expressly grants additional rulemaking authority to the Board of Health in Section 1 (Section 35.019, Health and Safety Code). SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 35, Health and Safety Code, by adding Sections 35.014 - 35.019 as follows: Sec. 35.014. CARE OF MEDICALLY FRAGILE; POLICY. Provides the policy and background of legislative acknowledgment of the expanding demographics of chronically ill children and their need for long term medical care. Establishes legislative recognition for cost effective medical care, education, and public assistance for such children and that such care should be community based and family centered. Specifies the legislative finding that research is needed as to the unique needs of "medically fragile children" and their families. Sec. 35.015. PILOT PROGRAM. Requires the Board of Health (board) to establish a pilot program and to select a non-profit private entity to operate the program. Allows the board to grant the pilot program an amount not exceeding $400,000 for each fiscal year. Sec. 35.016. PROGRAM CRITERIA. Requires the board to require the pilot program to include certain programs, services and other criteria as specified. Sec. 35.017. SELECTION. Requires the board to consider cost efficiency, ability to provide services on a regional basis, and demonstrated track record in selecting a private non-profit entity to operate the pilot program. Sec. 35.018. TERM: REPORT AND REVIEW. Establishes that the selection of the operating entity is effective for five years. Requires the board to monitor and review the pilot program and deliver a report to the Sunset Commission by September 1, 2000. Requires the commission to make legislative recommendations as specified. Requires the board and the commission to address in the review and reports, the benefits of the program as specified, the overall cost savings as specified, and provide recommendations as specified. Sec. 35.019. RULES. Allows the board to adopt rules to implement and oversee the program and to obtain the necessary reports as specified. SECTION 2. Amends Section 35.002, Health and Safety Code as follows: Subsection (9) defines "medically fragile child." Subsections (10) - (17) make renumbering changes to conform. SECTION 3. Provides that the effective date of the Act is September 1, 1997. Requires the board to select the entity to run the program by January 1, 1998. SECTION 4. Emergency clause.