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