HBA-ATS C.S.H.B. 2966 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2966 By: Hilbert Urban Affairs 3/27/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Texas law authorizes a governing body to adopt an ordinance creating a hospital authority if the governing body finds that creation of the authority is in the best interest of the municipality and its residents. All hospital authorities may own or operate a hospital, but only hospital authorities that are located in a county with a population of 35,000 or less, a rural area, or an area that is not delineated as an urbanized area by the federal census bureau may own or operate other medical facilities that cater to the elderly or disabled. The Tomball Hospital Authority (authority) owns and operates several medical facilities, including the Tomball Regional Hospital, an acute-care hospital, an ambulatory surgery center, a home health agency, a sports medicine center, a skilled nursing center, and a rehabilitation care center. The governing body of the Tomball Hospital Authority wants to operate a nursing home, an assisted living facility, and an independent living facility on land it owns adjacent to its hospital. The authority believes that if it is allowed to operate a limited number of nursing home beds it can accommodate the growing number of post-acute patients who are unable to receive immediate care because of long waiting lists at the two existing nursing homes in the city. In addition, hospital beds currently used by post-acute patients can be made available for patients that require acute care. The problem is that the authority is located in Harris County and therefore does not meet the statutory requirements to own or operate medical facilities that cater to the elderly or disabled. C.S.H.B. 2966 provides that a hospital authority that begins operating a facility or providing a service that caters to the elderly or disabled in a municipality with a population of less than 12,000 and a county with a population of 2.5 million or more is governed by Section 262.034 (Facilities and Services for Elderly and Disabled), Health and Safety Code. Under this bill, a hospital authority that operates a facility or provides a service that caters to the elderly or disabled in a municipality with a population of less than 12,000 and a county with a population of 2.5 million or more is prohibited from owning or operating more than 50 licensed nursing home beds. In addition, this bill provides that a hospital authority that provides services that cater to the elderly or disabled is not subject to the general prohibition against an authority issuing revenue bonds to own or operate such a facility if a private provider is available in the area. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 262.034, Health and Safety Code, by amending Subsection (e) and adding Subsection (g), as follows: (e) Includes a municipality with a population of less than 12,000 and a county with a population of 2.5 million or more at the time a hospital authority begins operating a facility or providing a service that caters to the elderly or disabled among the geographic areas in which a hospital authority is governed by Section 262.034 (Facilities and Services for Elderly and Disabled). (g) Prohibits a hospital authority that operates a facility or provides a service that caters to the elderly or disabled in a municipality with a population of less than 12,000 and a county with a population of 2.5 million or more from owning or operating more than 50 licensed nursing home beds under Section 262.034. Provides that such an authority is not subject to Subsection (f) (prohibition against an authority issuing revenue bonds to own or operate a facility that caters to the elderly or disabled if there is a private provider in the area). SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE C.S.H.B. 2966 modifies the original bill in SECTION 1 by amending existing Subsection (e) of Section 262.034 (Facilities and Services for Elderly and Disabled), Health and Safety Code, to include a municipality with a population of less than 12,000 and a county with a population of 2.5 million or more at the time a hospital authority begins operating a facility or providing a service that caters to the elderly or disabled, among the geographic areas in which a hospital authority is governed by Section 262.034. The substitute also modifies the original bill by amending the proposed addition of Subsection (g) to Section 262.034. The substitute prohibits a hospital authority that operates a facility or provides a service that caters to the elderly or disabled in a municipality with a population of less than 12,000 and a county with a population of 2.5 million or more from owning or operating more than 50 licensed nursing home beds under Section 262.034. The substitute also provides that such an authority is not subject to Subsection (f) (prohibition against an authority issuing revenue bonds to own or operate a facility that caters to the elderly or disabled if there is a private provider in the area). Under the original bill, proposed Subsection (g) prohibited the restrictions contained in existing Subsections (e) (rural area or county population) and (f) (prohibition against an authority issuing revenue bonds to own or operate a facility that caters to the elderly or disabled if there is a private provider in the area) from applying to an authority created by a municipality with a population less than 12,000 and that is located in a county with a population of 2.5 million or more, if the authority does not own or operate more than 50 licensed nursing home beds.