LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 23, 1997
TO: Honorable Hugo Berlanga, Chair IN RE: House Bill No. 2556
Committee on Public Health By: Kuempel
House
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 & Treatment Act for a hospital managed jointly by a city
or county.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2556-As Introduced
Implementing the provisions of the bill would result in a net
impact in the range from $0 to ($1,800,000) 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 three facilities that would
become eligible to participate in the program. This scenario
is represented in the first table below.
Three hospitals
in the state are known by the Department of Health to fit the
criteria to become eligible to participate in the Indigent Health
Care Program. If all three were to participate, at an approximate
average cost of participation in the program of $300,000 per
year, the fiscal impact to the state would be approximately
$900,000 per year. This scenario is represented in the second
table below.
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 (900,000)
2000 (900,000)
2001 (900,000)
2002 (900,000)
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
In order to participate in the program, the facilities that
are 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 facilities 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