LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 4, 1997
         
         
      TO: Honorable Ron E. Lewis, Chair            IN RE:  House Bill No. 794
          Committee on County Affairs                              By: Rodriguez
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB794 ( Relating 
to intergovernmental contracting by certain hospital districts.) 
this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB794-As Introduced
         
No fiscal implication to the State is anticipated.
         

         
 
          
This bill would affect hospital districts in counties with a 
population of more than 190,000.  The bill would remove from 
the list of entities with which a hospital district can contract 
privately owned or operated hospitals located within the district.

This 
bill would have no significant impact on hospital districts 
which do not contract with private hospitals for services.  
However, hospital districts which do contract for services with 
private hospitals would have to provide such services themselves 
or find another governmental entity to provide them, if this 
bill were enacted.  For example, the Tarrant County Hospital 
District estimates that it would have to begin performing several 
procedures which are currently handled by private entities at 
an additional cost of $2.5 million per year.  
          
   Source:            Agencies:   
                                         Tarrant County Hospital District
                                         University Health System
                      LBB Staff:   JK ,TL