LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 15, 1997 TO: Honorable Judith Zaffirini, Chair IN RE: Senate Bill No. 1246 Committee on Health & Human Services By: Madla Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1246 ( Relating to the establishment of the statewide rural community health system to allow for the delivery of certain health care services pursuant to the Texas Insurance Code.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB1246-As Introduced 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 TDI 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 ,BK