LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 8, 1997
         
         
      TO: Honorable Judith Zaffirini, Chair            IN RE:  Senate Bill No. 1574
          Committee on Health & Human Services                              By: Madla
          Senate
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on SB1574 ( Relating 
to the health care provider network of the state Medicaid program 
health care delivery system.) this office has detemined the 
following:
         
         Biennial Net Impact to General Revenue Funds by SB1574-As Introduced
         
No significant fiscal implication to the State is anticipated.
         
The bill would make no appropriation but could provide the legal 
basis for an appropriation of funds to implement the provisions 
of the bill.  The bill would amend current law to require the 
Health and Human Services Commission, each intergovernmental 
initiative, and each managed care organization to include in 
its managed care provider networks certain traditional providers 
of Medicaid services for not less than three years after the 
date of implementing managed care in a service area.  In the 
event that these provisions diminish the state's ability to 
negotiate reimbursement rates for these services, savings to 
the Medicaid program may be lower.
         
 
          
No significant fiscal implication to units of local government 
is anticipated.
          
   Source:            Agencies:   324   Department of Human Services
                                         529   Health and Human Services Commission
                                         501   Department of Health
                                         
                      LBB Staff:   JK ,BB ,AZ