SRC-JFA S.B. 1764 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1764
By: Moncrief
Health & Human Services
4-7-97
As Filed


DIGEST 

Currently, a rider in the Texas Department of Human Services' (DHS) budget
prohibits the agency 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.  As a result of this rider, 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.  Such a result, in rural areas of the state, limits
the facilities Medicaid recipients can choose and insulates facilities
with Medicaid beds from competition.  This bill would authorize DHS to
contract for additional nursing home beds under the state Medicaid program
in certain counties without regard to the occupancy rate of available
Medicaid beds.   
 
PURPOSE

As proposed, S.B. 1764 authorizes the Texas Department of Human Resources
to contract for additional nursing home beds under the state Medicaid
program in certain counties without regard to the occupancy rate of
available Medicaid beds.   

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

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

Sec.  32.0246.  NURSING HOME BEDS IN CERTAIN COUNTIES.  Authorizes the
Texas Department of Human Services (DHS), at the request of the
commissioners court of a county in which not more than two nursing
facilities are certified to participate in the state Medicaid program, to
contract for additional nursing home beds under the state Medicaid program
in the county without regard to the occupancy rate of available Medicaid
beds. Requires a commissioners court that intends to make a request under
this section to publish notice of its intent.  Sets forth the required
contents of the notice request.  Requires a commissioners court to
determine whether to proceed with a request after considering all comments
and proposals received in response to the notices.  Authorizes the court
to recommend that DHS contract with a specific nursing facility that
submitted a proposal.  Sets forth the factors the commissioners court is
required to consider in determining whether to proceed with the request
and whether to recommend a specific nursing facility.  Prohibits DHS from
contracting for more than 500 additional nursing home beds in a calender
year.  

SECTION 2. Requires DHS, if, before implementing Section 32.0246, Human
Resources Code, as added by this Act, DHS determines that a waiver or
authorization from a federal agency is necessary for implementation, to
request the waiver or authorization and may delay implementing that
section until the waiver or authorization is granted.  

SECTION 3. Emergency clause.
  Effective date: upon passage.