SRC-PNG C.S.H.B. 2573 76(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 2573
By: Wolens (Nelson)
Health Services
5/12/1999
Committee Report (Substituted)


DIGEST 

The Indigent Health Care and Treatment Act, enacted in 1985, has not
addressed all out-of-country issues impacting reimbursement of facilities
for care provided to indigent patients.  Tertiary medical centers, which
provide and coordinate care for trauma and seriously ill patients, as well
as injury prevention, research, public education, and continuing education
for rural providers, have experienced increased costs for care provided to
out-of-country indigent residents.  Currently, taxpayers of the county bear
the added costs incurred by the centers which provide health care to these
indigent residents.  This bill would require the Texas Board of Health to
adopt minimum standards and objectives to implement a system that
encourages hospitals to provide tertiary medical services and increases the
availability of these services, as well as providing funding for those
services. 

PURPOSE

As proposed, C.S.H.B. 2573 requires the Texas Board of Health to adopt
minimum standards and objectives to implement a system that encourages
hospitals to provide tertiary medical services and increases the
availability of these services, and provides funding for those services. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Board of Heath in SECTION 1
(Sections 46.002(a) and (b) and 46.004(b), Health and Safety Code) of this
bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 2B, Health And Safety Code, by adding Chapter 46,
as follows: 

CHAPTER 46.  TERTIARY MEDICAL CARE

Sec.  46.001.  DEFINITIONS.  Defines "tertiary care facility," "tertiary
medical services," "stabilization services," "unreimbursed tertiary medical
services," and "unreimbursed stabilization services."  

Sec.  46.002.  RULES.  Authorizes the Texas Board of Health (board), to
adopt rules to implement a system that encourages hospitals to provide
tertiary medical services and stabilization services.  Requires the rules
to address certain issues concerning tertiary medical services. 

Sec.  46.003.  TERTIARY CARE ACCOUNT.  Provides that the tertiary care
account (account) is an account in the state treasury.  Authorizes money in
the account to be appropriated only to TDH for the purposes of this
chapter.  Provides that the account is composed of money appropriated to
the account and any other funds required to be put in the account.
Authorizes TDH to seek and accept gifts, grants, and donations from any
public or private entity on behalf of the account.  Provides that Section
403.095, Government Code, is inapplicable to the account.  Requires five
percent of the total amount in the account to be held in reserve for each
fiscal year and authorizes it to be used only for reimbursement of unpaid
tertiary medical services and stabilization services provided as a result
of extraordinary emergencies occurring during that year.  Provides that of
the amount  remaining, no more than five percent may be used for the costs
of administering the account. Requires the account to be allocated for
payment to tertiary care facilities and level IV trauma centers for
unreimbursed tertiary medical services and stabilization services, as
provided for in Section 46.005 and 46.006.   

Sec.  46.004. COLLECTION OF INFORMATION.  Requires each facility or level
IV trauma facility that seeks payment under this chapter to submit to TDH,
in the manner and time required, information relating to unreimbursed
tertiary medical services or stabilization services provided to persons
residing outside the service area of the county, public hospital, or
hospital district responsible for indigent health care under Chapter 61,
Health and Safety Code, in the area where the facility or level IV trauma
facility is located.  Requires the board to adopt rules governing the
collection of this information. 

Sec.  46.005.  CERTIFICATION TO COMPTROLLER OF UNREIMBURSED TERTIARY
MEDICAL SERVICES.  (a) Requires TDH to certify to the comptroller of public
accounts (comptroller) for each facility or level IV trauma facility the
cost of unreimbursed stabilization services it provides to persons residing
outside the service area of the county, public hospital, or hospital
district responsible for indigent health care under Chapter 61, Health and
Safety Code, in the area where the facility or level IV trauma facility is
located.  
(b) Requires TDH to use no more than four percent of the appropriated money
in the account to compensate facilities and level IV trauma facilities for
unreimbursed stabilization services, in each fiscal year. 

(c) Requires TDH, on a yearly basis, to make for a facility that operated
as a tertiary care facility or level IV trauma facility during the previous
year, an initial certification to the comptroller under Subsection (a) in
an amount equaling 80 percent of that certified under this section for a
facility in the previous year.  Requires TDH to make a subsequent
certification of the cost of additional unreimbursed stabilization services
provided by the facility on receipt from the facility of the required
information under Section 46.006, Health and Safety Code. 

(d) Requires the comptroller, each year, to pay a facility or level IV
trauma facility the certified amount determined under Subsection (a) from
the funds specified under Section 46.003(f), except as provided by
Subsection (e). 

(e) Requires TDH to allocate the amount available under Section 46.005,
Health and Safety Code, to each facility based on the percentages computed
by dividing the cost of the facility's unreimbursed stabilization services,
if in any year, the cost of services certified under Subsection (a) for all
facilities exceeds the amount available for payment to the facilities under
that section.  Requires the comptroller to pay each facility based on the
allocation made under this subsection. 

(f) Provides that the cost of each service provided by a facility  is the
average amount payable under Medicare reimbursement policies for that
service. 

Sec.  46.006.  CERTIFICATION TO COMPTROLLER OF UNREIMBURSED STABILIZATION
SERVICES.  (a) Requires TDH to certify to the comptroller for each facility
the cost of unreimbursed tertiary medical services it provides to persons
residing outside the service area of the county, public hospital, or
hospital district responsible for indigent health care under Chapter 61,
Health and Safety Code, in the area where the facility is located.   

(b) Requires TDH to use at least 86 percent of the appropriated money in
the account to compensate facilities for unreimbursed tertiary medical
services, in each fiscal year. 

(c) Requires TDH, on a yearly basis, to make, for a facility that operated
as a tertiary care facility during the previous year, an initial
certification to the comptroller under Subsection (a) in an amount equaling
80 percent of that certified under this section for a facility in the
previous year.  Requires TDH to make a subsequent certification of the cost
of additional unreimbursed tertiary medical services provided by the
facility on receipt from the facility of the required information under
Section 46.006, Health and Safety Code. 

(d) Requires the comptroller, each year, to pay a facility the certified
amount determined under Subsection (a) from the funds specified under
Section 46.003(f), except as provided by Subsection (e). 

(e) Requires TDH to allocate the amount available under Section 46.005,
Health and Safety Code, to each facility based on the percentages computed
by dividing the cost of the facility's unreimbursed tertiary medical
services, if in any year, the cost of services certified under Subsection
(a) for all designated facilities exceeds the amount available for payment
to the facilities under that section.  Requires the comptroller to pay each
facility based on the allocation made under this subsection. 

(f) Provides that the cost of each service provided by a tertiary care
facility is the average amount payable under Medicare reimbursement
policies for that service. 

Sec.  46.007.  CERTIFICATION OF EMERGENCIES.  Requires TDH, for the
purposes of reimbursement under this chapter, to certify an extraordinary
emergency under certain conditions.  Requires TDH to certify to the
comptroller the amount of unreimbursed tertiary medical services or
stabilization services or transportation services incurred by a facility or
a level IV trauma facility during an emergency if one is certified under
Subsection (a). 

Sec.  46.008.  Requires the comptroller to pay, each year, the certified
amount determined under Subsection (b) from the funds specified under
Section 46.003(e) to a facility or a level IV trauma facility.  Requires
TDH to allocate the amount available under Section 46.003(e) to each
facility based on the percentages computed by dividing the cost of the
facility's or provider unreimbursed services by the total cost of all
facilities' unreimbursed services, under certain conditions.  Requires the
comptroller to pay each facility or level IV trauma facility based on the
allocation made under this subsection. 

SECTION 2. Effective date: September 1, 1999.

SECTION 3. Provides that this Act takes effect only if a specific
appropriation for the implementation of this Act is provided in H.B. No.  1
(General Appropriations Act).  Provides that if no specific appropriation
is provided in H.B. No.  1, this Act has no effect. 

SECTION 4. Emergency clause.