LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session April 26, 1999 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB3216 by McCall (relating to the standarization of credentialing of physicians), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB3216, Committee Report 1st House, Substituted: positive impact * * of $0 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 $0 * * 2001 0 * * 2002 0 * * 2003 0 * * 2004 0 * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Probable Revenue Gain/(Loss) * * Year General Revenue Fund from General Revenue Fund * * 0001 0001 * * 2000 $(1,564,470) $1,564,470 * * 2001 (403,792) 403,792 * * 2002 (363,160) 363,160 * * 2003 (363,160) 363,160 * * 2004 (363,160) 363,160 * *************************************************************************** Technology Impact The bill would require programming costs of $530,000 in the first year and $61,200 in the second year. Fiscal Analysis The bill would amend the Medical Practice Act by creating a credentials verification program and would require the Board of Medical Examiners (BME) to collect, verify, maintain and store physician credentials data. The bill would establish guidelines for the program, allow the BME to charge fees to cover the program costs, and prohibit health care entities from collecting duplicate credential data. The bill would also prohibit state agencies from collecting duplicate core credentials data from physicians if that information is already available through the program as of September 1, 2002. The bill would prohibit the BME from making the credentials reports available before September 1, 2001 and clarifies that the BME is not required to implement the program if appropriations are not made by the legislature specifically for that purpose. The bill would take effect September 1, 1999. Methodology The BME estimates the increased workload created by the bill would require 5 FTEs for the development and maintenance of the credential verification program and would require $1,389,360 in programming costs, operating costs, and computer hardware and software upgrades in the first year. In addition, $228,682 in programming and operating costs would be required in 2001. In subsequent years the cost of operation would be reduced to $363,160 per year. The BME estimates licensing 56,617 physicians in fiscal year 2000 and 57,917 in fiscal year 2001 and that a minimum of 5 verifications per physician per year would be issued. It is assumed that the BME would adopt rules necessary to implement the provisions of the bill and would charge fees in an amount sufficient to cover the estimated costs. Local Government Impact No significant fiscal implication to units of local government is anticipated. Source Agencies: 304 Comptroller of Public Accounts, 503 Board of Medical Examiners LBB Staff: JK, TP, RT, MW