LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
May 6, 1997
TO: Honorable Hugo Berlanga, Chair IN RE: Senate Bill No. 1246, As Engrossed
Committee on Public Health By: Madla
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB1246 ( relating
to the establishment of a statewide rural health care system.)
this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB1246-As Engrossed FN Revision 1
No fiscal implication to the State is anticipated.
The provisions of the bill would create the non-profit Statewide
Rural Health Care System (SRHCS) which would function as an
HMO and contract out with health care providers for delivery
of health care services in rural areas. The bill also allows
SRHCS to contact out for administrative services and to hire
staff, but does not identify a funding source. It is assumed
that SRHCS would not be funded by the state. Any additional
workload to the Texas Department of Insurance to regulate SRHCS
to ensure compliance with the Texas Health Maintenance Organization
Act would be handled with existing agency resources.
No significant fiscal implication to units of local government
is anticipated. To the extent that the provisions of the bill
allow SRHCS to contract out services to county hospitals, county
hospital authorities, hospital districts, municipal hospitals,
and municipal hospital authorities, there may be some continuing
fiscal impact on these local political subdivisions.
Source: Agencies: 501 Department of Health
454 Department of Insurance
LBB Staff: JK ,BB ,TH ,BK