LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 1, 1997
TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 908, Committee Report 1st House, as amended
Committee on Health & Human Services By: Zaffirini
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB908 ( Relating
to the licensing and inspection of certain hospitals.) this
office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB908-Committee Report 1st House, as amended
Implementing the provisions of the bill would result in a net
impact of $0 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 authorize the Department of Health to conduct
an inspection of a hospital exempt from an annual licensing
inspection before issuing a renewal license to the hospital
if the certification or accreditation body has not conducted
an on-site inspection of the hospital in the preceding three
years.
Methodolgy
There are approximately 123 hospitals currently licensed by
the Department of Health but not accredited by the Joint Commission
on the Accreditation of Healthcare Organizations (JCAHO). Hospitals
accredited by the JCAHO receive an on-site inspection at least
every three years. The Department of Health states that, for
hospitals that are Medicare certified, funding limitations may
prevent an on-site inspection from being conducted at least
every three years.
The Department of Health estimates that
inspections would be needed at least once every three years
for all hospitals not accredited by the JCAHO. In order to
accomplish this, one new inspection team would be added, with
seven full-time equivalent positions. It is estimated that
licensing fees would be increased to cover the cost of the bill.
The Department of Health anticipates increasing licensing fees
to $10 per bed, which would result in an approximate minimum
fee of $1,300 and an approximate maximum fee of $10,000.
First year costs are reduced to reflect a start-up phase.
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 Probable Revenue Change in Number
Savings/(Cost) Gain/(Loss) to of State
to Hospital Hospital Employees from
Licensing Licensing FY 1997
Account/ Account/
GR-Dedicated GR-Dedicated
0129 0129
1998 ($304,909) $304,909 5.0
1998 (418,355) 418,355 7.0
2000 (418,355) 418,355 7.0
2001 (418,355) 418,355 7.0
2002 (418,355) 418,355 7.0
Net Impact on General Revenue Related Funds:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
No significant fiscal implication to units of local government
is anticipated.
Source: Agencies: 501 Department of Health
LBB Staff: JK ,BB