1-1                                   AN ACT
 1-2     relating to tertiary medical care.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subtitle B, Title 2, Health and Safety Code, is
 1-5     amended by adding Chapter 46 to read as follows:
 1-6                     CHAPTER 46.  TERTIARY MEDICAL CARE
 1-7           Sec. 46.001.  DEFINITIONS.  In this chapter:
 1-8                 (1)  "Tertiary care facility" means a:
 1-9                       (A)  primary teaching hospital of a medical
1-10     school;
1-11                       (B)  level I trauma center;
1-12                       (C)  level II trauma center; or
1-13                       (D)  level III trauma center.
1-14                 (2)  "Tertiary medical services" includes, but is not
1-15     limited to, services provided by state-designated trauma centers,
1-16     burn center treatment, neonatology Level III unit services,
1-17     pediatric surgery, trauma surgery, neurosurgery, cardiothoracic and
1-18     vascular surgery, organ transplant, services provided for a
1-19     life-threatening dermatologic illness, services provided to a
1-20     person with a high-risk pregnancy or cancer, and radiation
1-21     oncology.
1-22                 (3)  "Stabilization services" means services provided
1-23     by a tertiary care facility or a level IV designated trauma center
1-24     that are necessary to assure, within reasonable medical
 2-1     probability, that no material deterioration of a patient's medical
 2-2     condition is likely to result from or occur during the transfer of
 2-3     the patient to a tertiary care facility.
 2-4                 (4)  "Unreimbursed tertiary medical services" means
 2-5     tertiary care medical services for which a tertiary care facility
 2-6     has not received full payment from any public or private source.
 2-7                 (5)  "Unreimbursed stabilization services" means
 2-8     stabilization services for which a tertiary care facility or level
 2-9     IV designated trauma facility has not received full payment from
2-10     any public or private source.
2-11           Sec. 46.002.  RULES.  (a)  The board may adopt rules to
2-12     implement a system that encourages hospitals to provide tertiary
2-13     medical services and stabilization services.
2-14           (b)  The rules must address:
2-15                 (1)  coordination of tertiary medical services and
2-16     stabilization services  among health care facilities in the
2-17     delivery area;
2-18                 (2)  pre-hospital care management guidelines for
2-19     triage, transfer, and transportation of patients and periodic
2-20     evaluation of tertiary care facilities' and level IV trauma
2-21     facilities' compliance with the guidelines and the trauma facility
2-22     rules, as appropriate;
2-23                 (3)  requirements for data collection, including
2-24     patient outcomes;
2-25                 (4)  assurances that tertiary care facilities will not
2-26     refuse to accept the transfer of a patient solely because of the
2-27     person's inability to pay for services or because of the person's
 3-1     age, sex, race, religion, or national origin; and
 3-2                 (5)  enforcement of the rules.
 3-3           Sec. 46.003.  TERTIARY CARE ACCOUNT.  (a)  The tertiary care
 3-4     account is an account in the state treasury.  Money in the account
 3-5     may be appropriated only to the department for the purposes of this
 3-6     chapter.
 3-7           (b)  The account is composed of money appropriated to the
 3-8     account and any other funds required to be put in the account.
 3-9           (c)  The department may seek and accept gifts, grants, and
3-10     donations from any public or private entity on behalf of the
3-11     account.
3-12           (d)  Section 403.095, Government Code, does not apply to the
3-13     account.
3-14           (e)  For each fiscal year, five percent of the total amount
3-15     in the account shall be held in reserve and may be used only for
3-16     reimbursement of unpaid tertiary medical services and stabilization
3-17     services provided as a result of extraordinary emergencies
3-18     occurring during that year.  Of the amount remaining, not more than
3-19     five percent may be used for the costs of administering the
3-20     account.
3-21           (f)  Except as provided by Subsection (e), the account shall
3-22     be allocated for payment to tertiary care facilities and level IV
3-23     trauma centers for unreimbursed tertiary medical services and
3-24     stabilization services, as provided for in Sections 46.005 and
3-25     46.006.
3-26           Sec. 46.004.  COLLECTION OF INFORMATION.  (a)  Each tertiary
3-27     care facility or level IV trauma facility that seeks payment under
 4-1     this chapter shall submit to the department, in the manner and at
 4-2     the time required by the department, information that relates to
 4-3     the unreimbursed tertiary medical services or stabilization
 4-4     services provided to persons who reside outside the service area of
 4-5     the county, public hospital, or hospital district that is
 4-6     responsible for indigent health care under Chapter 61 in the area
 4-7     in which the tertiary care facility or level IV trauma facility is
 4-8     located.
 4-9           (b)  The board shall adopt rules governing the collection of
4-10     the information under Subsection (a).
4-11           Sec. 46.005.  CERTIFICATION TO COMPTROLLER OF UNREIMBURSED
4-12     TERTIARY MEDICAL SERVICES.  (a)  The department shall certify to
4-13     the comptroller for each tertiary care facility the cost of
4-14     unreimbursed tertiary medical services provided to persons who
4-15     reside outside the service area of the county, public hospital, or
4-16     hospital district that is responsible for indigent health care
4-17     under Chapter 61 in the area in which the tertiary care facility is
4-18     located.
4-19           (b)  In each fiscal year the department shall use at least 86
4-20     percent of the appropriated money in the tertiary care account to
4-21     compensate tertiary care facilities for unreimbursed tertiary
4-22     medical services.
4-23           (c)  Each year the department shall make, for a facility that
4-24     operated as a tertiary care facility during the previous year, an
4-25     initial certification to the comptroller under Subsection (a) in an
4-26     amount that equals 80 percent of the amount certified under this
4-27     section for the facility in the previous year.  The department
 5-1     shall make a subsequent certification of the cost of additional
 5-2     unreimbursed tertiary medical services provided by the facility on
 5-3     receipt from the facility of the information required to be
 5-4     submitted under Section 46.004.
 5-5           (d)  Except as provided by Subsection (e), each year the
 5-6     comptroller shall pay a tertiary care facility the certified amount
 5-7     determined under Subsection (a) from the funds specified under
 5-8     Section 46.003(f).
 5-9           (e)  If in any year the total cost of unreimbursed tertiary
5-10     medical services certified under Subsection (a) for all tertiary
5-11     care facilities exceeds the amount available for payment to the
5-12     facilities under Section 46.003(f), the department shall allocate
5-13     the amount available under Section 46.003(f) to each facility based
5-14     on the percentages computed by dividing the cost of the facility's
5-15     unreimbursed services by the total cost of all facilities'
5-16     unreimbursed services.  The comptroller shall pay each tertiary
5-17     care facility based on the allocation made under this subsection.
5-18           (f)  For purposes of this section and Section 46.007, the
5-19     cost of each service provided by a tertiary care facility is the
5-20     average amount payable under Medicare reimbursement policies for
5-21     that service.
5-22           Sec. 46.006.  CERTIFICATION TO COMPTROLLER OF UNREIMBURSED
5-23     STABILIZATION SERVICES.  (a)  The department shall certify to the
5-24     comptroller for each tertiary care facility or level IV trauma
5-25     facility the cost of unreimbursed stabilization services provided
5-26     to persons who reside outside the service area of the county,
5-27     public hospital, or hospital district that is responsible for
 6-1     indigent health care under Chapter 61 in the area in which the
 6-2     tertiary care facility or level IV trauma facility is located.
 6-3           (b)  In each fiscal year the department shall use no more
 6-4     than four percent of the appropriated money in the tertiary care
 6-5     account to compensate tertiary care facilities and level IV trauma
 6-6     facilities for unreimbursed stabilization services.
 6-7           (c)  Each year the department shall make, for a facility that
 6-8     operated as a tertiary care facility or level IV trauma facility
 6-9     during the previous year, an initial certification to the
6-10     comptroller under Subsection (a) in an amount that equals 80
6-11     percent of the amount certified under this section for the facility
6-12     in the previous year.  The department shall make a subsequent
6-13     certification of the cost of additional unreimbursed stabilization
6-14     services provided by the facility on receipt from the facility of
6-15     the information required to be submitted under Section 46.004.
6-16           (d)  Except as provided by Subsection (e), each year the
6-17     comptroller shall pay a tertiary care facility or level IV trauma
6-18     facility the certified amount determined under Subsection (a) from
6-19     the funds specified under Section 46.003(f).
6-20           (e)  If in any year the total cost of unreimbursed
6-21     stabilization services certified under Subsection (a) for all
6-22     tertiary care facilities or level IV trauma facilities exceeds the
6-23     amount available for payment to the facilities under Section
6-24     46.003(f), the department shall allocate the amount available under
6-25     Section 46.003(f) to each facility based on the percentages
6-26     computed by dividing the cost of the facility's unreimbursed
6-27     stabilization services by the total cost of all facilities'
 7-1     unreimbursed stabilization services.  The comptroller shall pay
 7-2     each tertiary care facility or level IV trauma facility based on
 7-3     the allocation made under this subsection.
 7-4           (f)  For purposes of this section and Section 46.007, the
 7-5     cost of each service provided by a tertiary care facility or level
 7-6     IV trauma facility is the average amount payable under Medicare
 7-7     reimbursement policies for that service.
 7-8           Sec. 46.007.  CERTIFICATION OF EMERGENCIES.  (a)  For
 7-9     purposes of reimbursing extraordinary emergencies under this
7-10     chapter, the department shall certify an extraordinary emergency:
7-11                 (1)  if the governor issues an executive order or a
7-12     proclamation under Chapter 418, Government Code;
7-13                 (2)  if a disaster is declared by the president of the
7-14     United States under the Robert T. Stafford Disaster Relief and
7-15     Emergency Assistance Act (42 U.S.C. Section 5121 et seq.); or
7-16                 (3)  for another similar disaster the department finds
7-17     has resulted in an extraordinary cost to a tertiary care facility
7-18     or level IV trauma facility.
7-19           (b)  If an extraordinary emergency is certified under
7-20     Subsection (a), the department shall certify to the comptroller the
7-21     amount of unreimbursed tertiary medical services or stabilization
7-22     services or transportation services incurred by a tertiary care
7-23     facility or level IV trauma facility, as appropriate, during the
7-24     emergency.
7-25           (c)  Except as provided by Subsection (d), each year the
7-26     comptroller shall pay a tertiary care facility or level IV trauma
7-27     facility the certified amount determined under Subsection (b) from
 8-1     the funds specified under Section 46.003(e).
 8-2           (d)  If in any year the total cost of unreimbursed tertiary
 8-3     medical services or stabilization services certified under
 8-4     Subsection (b) for all facilities exceeds the amount available for
 8-5     payment to the facilities under Section 46.003(e), the department
 8-6     shall allocate the amount available under Section 46.003(e) to each
 8-7     facility based on the percentages computed by dividing the cost of
 8-8     the facility's or provider's unreimbursed services by the total
 8-9     cost of all facilities' unreimbursed services.  The comptroller
8-10     shall pay each tertiary care facility or level IV trauma facility
8-11     based on the allocation made under this subsection.
8-12           SECTION 2.  This Act takes effect September 1, 1999.
8-13           SECTION 3.  This Act takes effect only if a specific
8-14     appropriation for the implementation of this Act is provided in
8-15     H.B. No. 1 (General Appropriations Act), Acts of the 76th
8-16     Legislature, Regular Session, 1999.  If no specific appropriation
8-17     is provided in H.B. No. 1, the General Appropriations Act, this Act
8-18     has no effect.
8-19           SECTION 4.  The importance of this legislation and the
8-20     crowded condition of the calendars in both houses create an
8-21     emergency and an imperative public necessity that the
8-22     constitutional rule requiring bills to be read on three several
8-23     days in each house be suspended, and this rule is hereby suspended.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2573 was passed by the House on April
         27, 1999, by a non-record vote; and that the House concurred in
         Senate amendments to H.B. No. 2573 on May 26, 1999, by a non-record
         vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2573 was passed by the Senate, with
         amendments, on May 24, 1999, by the following vote:  Yeas 30, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor