HBA-MPM H.B. 2070 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2070
By: Gray
Higher Education
4/6/1999
Introduced



BACKGROUND AND PURPOSE 

The University of Texas Medical Branch (UTMB) at Galveston is the state's
oldest and largest health sciences center.  Additionally, it is the only
one of the state's medical schools that owns and operates hospital
facilities.  These hospital facilities, which are classified as general
categorical (treating all types of illnesses), have served as a statewide
"safety net" hospital for patients without medical coverage for more than
100 years.  While UTMB's annual operating expenses are approximately $1
billion, the majority of these funds must be earned by UTMB through the
provision of health care services. 

Managed care concepts such as HMOs have significantly altered the
environment in which health care organizations operate.  UTMB, however, has
difficulties effectively operating in this environment due to constraints
placed upon it under current law.  H.B. 2070 allows UTMB flexibility with
respect to entering into contracts with other health care providers,
acquiring goods and services, and issuing employee retirement benefits. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the medical branch in SECTION 1
(Section 74.008, Education Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 74, Education Code, by adding
Sections 74.005, 74.006, 74.007, and 74.008, as follows: 

Sec. 74.005.  TREATMENT OF INDIGENT PATIENTS.  (a)  Authorizes the medical
branch to enter into a contract with a county, public hospital, or hospital
district to provide treatment to residents of those service areas who are
eligible for health care assistance under Chapter 61 (Indigent Health Care
and Treatment Act), Health and Safety Code. 

(b)  Prohibits the liability of a county, public hospital, or hospital
district to the medical branch for the treatment of residents of those
service areas by the medical branch from exceeding the responsibility of a
county as provided by Chapter 61, Health and Safety Code, unless agreed to
by the county, public hospital, or hospital district in a contract entered
into under this section. 

(c)  Requires the liability of a county, public hospital, or hospital
district, if a contract is entered into under this section, to take into
consideration the actual costs of the medical branch in providing health
care services under the contract.  Prohibits the liability of these
entities from exceeding the medical branch's costs. 

(d)  Provides that the medical branch must receive the approval of a
county, public hospital, or hospital district before providing nonemergency
heath care services to an eligible resident of those service areas if a
contract is not entered into under this section. Provides that if approval
is not received, these entities are not liable to the medical branch for
any nonemergency care provided to the resident, and that if approval is
received, these entities are liable to the medical branch under Subsection
(b) for the services provided by  the branch to the resident. 

(e)  Assigns the terms "eligible resident," "hospital district," "public
hospital," and "service area" the meanings given under Chapter 61, Health
and Safety Code. 

Sec. 74.006.  SUFFICIENCY OF INSTITUTIONAL FUNDS, FEES, AND PATIENT BASE.
Requires the medical branch to ensure that its funds and its hospital and
clinic fees and patient base are sufficient to fund an achieve the mission
and strategic plan of the branch and protect the state's investment in the
development of the branch. 

Sec. 74.007.  INCENTIVE RETIREMENT PLANS.  Authorizes the medical branch to
offer incentive retirement plans to employees of the branch who elect to
retire under other state law.  Provides that the incentive must be paid
from the branch's funds or hospital or clinic fees.  Provides that an
institutional plan providing for incentive retirement plans must be filed
with the Legislative Budget Board no later than the 61st day after the plan
is implemented.  Prohibits the branch from rehiring an employee receiving
an incentive under this section without the specific approval of the
president. 

Sec. 74.008.  ACQUISITION OF GOODS AND SERVICES.  (a)  Authorizes a medical
branch to acquire goods and services by the method that provides best value
to the branch, including certain methods of purchase, and requires the
branch to determine what is the best value to the branch using certain
criteria.  Authorizes the state auditor to audit the branch's purchases of
goods or services.  Authorizes the branch to adopt rules and procedures for
the acquisition of the goods and services. Provides that to the extent of
any conflict, this section prevails over any other law relating to the
purchase of goods and services except a law relating to contracting with
historically underutilized businesses.  Provides that Subtitle D (State
Purchasing and General Services), Title 10 (Government Code) and Chapter
2254 (Professional and Consulting Services), Government Code, do not apply
to the purchases of goods and services made under this section. 

SECTION 2.  Repealer:  Subchapter B (Moody State School for Cerebral
Palsied Children), Chapter 74, Education Code. 

SECTION 3.  Effective date for Section 1 of this Act:  September 1, 1999.
Effective date for Section 2 of this Act:  September 1, 2001.  Requires the
University of Texas Medical Branch at Galveston, the Moody State School for
Cerebral Palsied Children, and the University of Texas Medical Branch at
Galveston Special School to discuss and enter into a memorandum of
understanding relating to the transfer of powers, duties, property,
personnel, and other assets or liabilities of these institutions no later
than January 1, 2000.  Provides that funding that could have been provided
to the Moody State School for Cerebral Palsied Children and the University
of Texas Medical Branch at Galveston Special School under Subchapter B,
Chapter 74, Education Code, may be provided to the University of Texas
Medical Branch at Galveston if the medical branch performs the same duties
as the providing institutions before the repeal of Subchapter B, Chapter
74, Education Code.  

SECTION 4.Emergency clause.
  Effective date: upon passage.