LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              April 6, 1999
  
  
          TO:  Honorable Patricia Gray, Chair, House Committee on Public
               Health
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB714  by Naishtat (Relating to hearing screening for
               newborn children.), As Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB714, As Introduced:  negative impact of $(230,573) through the      *
*  biennium ending August 31, 2001.                                      *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2000                            $(45,874)  *
          *       2001                            (184,699)  *
          *       2002                            (185,858)  *
          *       2003                            (186,631)  *
          *       2004                            (187,790)  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Savings/(Cost) from   *
* Year         General Revenue Fund               Federal Funds           *
*                      0001                            0555               *
*  2000                         $(45,874)                       $(73,126) *
*  2001                         (184,699)                       (293,301) *
*  2002                         (185,858)                       (295,142) *
*  2003                         (186,631)                       (296,369) *
*  2004                         (187,790)                       (298,210) *
***************************************************************************
  
Fiscal Analysis
  
The bill would require that a physician attending a newborn child or the
person attending the delivery of a newborn child ensure that the child
is subjected to a screening test approved by the Department of Health
for hearing impairments before the child is 181 days old.
  
  
Methodology
  
The Department of Health assumes that the only costs incurred by the
department would be in the Medicaid program for hearing aids and
audiological assessments and similar costs for children identified as
having a hearing impairment.

The hospital reimbursement for the screen would become part of the
Diagnosis Related Group (DRG) reimbursement in the Medicaid program.
However, the Department of Health has not provided the dollar value of
this impact; therefore, the cost estimates understate the fiscal impact
to the General Revenue Fund.
  
  
Local Government Impact
  
It is likely that hospital districts would incur some additional costs to
implement a universal hearing screening program for newborns.
  
  
Source Agencies:   
LBB Staff:         JK, TP, KF