LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 15, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: House Bill No. 2556, As Engrossed
Committee on Health & Human Services By: Kuempel
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2556 ( Relating
to eligibility for state assistance under the Indigent Health
Care and Treatment Act for certain hospitals.) this office has
detemined the following:
Biennial Net Impact to General Revenue Funds by HB2556-As Engrossed
Implementing the provisions of the bill would result in a net
impact in the range from $0 to ($600,000) to General Revenue
Related Funds through the biennium ending August 31, 1999
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would allow a hospital jointly managed by a city and
a county to be eligible to participate in the Indigent Health
Care Programs, if the county spends at least 10 percent of the
county general revenue levy for the year to provide mandatory
health care services to eligible county residents.
Methodolgy
The Texas Department of Health projects no fiscal impact to
the Department of Health, as data are not available on the indigent
health care spending history of the facility that would become
eligible to participate in the program. This scenario is represented
in the first table below.
Only one hospital in the state
is known by the Department of Health to fit the criteria to
become eligible to participate in the Indigent Health Care Program.
If this facility were to participate, the fiscal impact to
the state would be approximately $300,000 per year, based on
an approximate average cost of participation. This scenario
is represented in the second table below. (Note: This fiscal
note is based on updated information received from the Department
of Health on 5/15/97.)
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable
Savings/(Cost)
from General
Revenue Fund
0001
1998 $0
1998 0
2000 0
2001 0
2002 0
Fiscal Year Probable
Savings/(Cost)
from General
Revenue Fund
0001
1998
1999 (300,000)
2000 (300,000)
2001 (300,000)
2002 (300,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
In order to participate in the program, a facility that is jointly
managed by a city and county will be required to pay for the
range of services required under the Indigent Health Care Program,
which include physician charges, prescriptions, skilled nursing
facility services, family planning, and others. The facility
would be required to adjust eligibility standards based upon
those of the Indigent Health Care Program.
Source: Agencies: 501 Department of Health
LBB Staff: JK ,BB ,KF