LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 19, 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 standardization of
credentialing of physicians:), As Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3216, As Introduced: 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. *
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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:
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*Fiscal Probable Probable Revenue Change in Number of *
* Year Savings/(Cost) from Gain/(Loss) from State Employees from *
* General Revenue Fund General Revenue Fund FY 1999 *
* 0001 0001 *
* 2000 $(1,564,470) $1,564,470 5.0 *
* 2001 (403,792) 403,792 5.0 *
* 2002 (363,160) 363,160 5.0 *
* 2003 (363,160) 363,160 5.0 *
* 2004 (363,160) 363,160 5.0 *
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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 Article 4495b, by adding subchapter G to the Medical
Practice Act to establish a mandatory credentials collection program.
The bill would create the Credentials Verification Council,
administratively attached to the Texas State Board of Medical Examiners,
that would administer the collecting, verifying, maintaining and storing
of information relating to physician credentials. The bill would allow
the Council to charge a reasonable fee for information to cover the cost
of implementing the provisions of the bill and would prohibit health
care entities from collecting duplicate credential data. The bill would
also prohibit a state agency from collecting duplicate core credentials
from a physician if that information is already available from the
council as of July 1, 2002. The bill would require the Council to make
the credentials reports required by the bill available no later than July
1, 2000.
In addition, the bill would require the Council to study the feasibility
of adding additional health care providers to its services and to report
its findings to the Speaker of the House and the Lt. Governor no later
than December 1, 2000. The bill would also require the Council to
appoint a task force no later than January 5, 2000 to develop procedures
to expand the program to include office site visits and medical chart
reviews and to report to the Council no later than December 1, 2000.
Subsequently, the bill would require the Council to report to the Speaker
of the House and the Lt. Governor the findings of the Task Force no
later than December 31, 2000.
The bill would take effect September 1, 1999.
Methodology
The Board of Medical Examiners (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 would issue a minimum of 5
verifications per physician per year. It is assumed that the BME 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: 503 Board of Medical Examiners, 501 Department of
Health, 454 Department of Insurance
LBB Staff: JK, TH, MW