CLC S.B. 1763 75(R)BILL ANALYSIS


HUMAN SERVICES
S.B. 1763
By: Moncrief
5-29-97
Committee Report (Unamended)


BACKGROUND 

Currently, the Texas Department of Human Services is prohibited from
contracting for additional Medicaid beds in nursing facilities unless the
number of occupied Medicaid beds in a geographic area falls below a
certain percentage of the total number of beds.  This often means that
facilities which do not have any Medicaid beds cannot obtain any so long
as facilities which do have Medicaid beds ensure that the occupancy rate
does not drop under the specified percentage.  This has the practical
effect of limiting the facilities Medicaid recipients can choose and
insulating Medicaid beds from meaningful competition.  This bill will
authorize the department to contract for Medicaidcertified beds in nursing
facilities if certain conditions are met. 

PURPOSE

As proposed, S.B. 1763 authorizes the Texas Department of Human Services
to contract for Medicaid-certified beds in nursing facilities if certain
conditions are met. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Department of Human Services
in SECTION 2 (Section 32.0247, Human Resources Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 32B, Human Resources Code, by adding Section
32.0246, as follows: 

Sec.  32.0246.  WAIVER OF RESTRICTIONS ON CONTRACTING FOR CERTIFIED
NURSING FACILITY BEDS.  Authorizes the Texas Department of Human Services
(department) to waive any restriction imposed by state law on the
authority to contract for Medicaid beds in a facility, regardless of the
percentage of Medicaid beds occupied in a geographic area, if certain
conditions are met.  Requires the department to waive any restrictions
imposed by state law on the authority to contract for Medicaid beds
occupied in a geographic area if certain conditions are met. 

SECTION 2.Requires the department to adopt rules necessary to implement
this Act no later than October 1, 1997. 

SECTION 3. Emergency clause.
  Effective date: 90 days after adjournment.