MINUTES SENATE COMMITTEE ON FINANCE Subcommittee on Graduate Medical Education Thursday, April 20, 2000 1:00 p.m. Capitol Extension, Room E1.036 ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Finance Interim Subcommittee on Graduate Medical Education was held on Thursday, April 20, 2000, in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Mike Moncrief, Chairman Senator Jon Lindsay Senator John Carona Senator Royce West Senator Carlos Truan ***** The chair called the meeting to order at 1:05 p.m. There being a quorum present, the following business was transacted: The Chair made opening remarks and proceeded with the hearing as follows: Graduate Medical Education (GME) Issues Sam Tessen, Executive Director for the Center for Rural Health Initiatives, provided an overview of rural GME issues. A panel consisting of the following medical school representatives provided testimony on medical school efforts to address rural GME issues: Dr. Jim Guckian, representing the University of Texas System; Dr. Ralph D. Feigin, representing Baylor College of Medicine; Dr. Patti Patterson, representing Texas Tech University Health Sciences Center; Dr. Nancy Dickey, representing Texas A&M College of Medicine/Brazos Valley Family Practice Residency; and Dr. Deborah Blackwell, representing University of North Texas Health Science Center. Teri Flack, representing the Texas Higher Education Coordinating Board (THECB) and Robert Price, representing the University of Texas Health Science Center - San Antonio, provided testimony on the THECB Health-Related Formula Advisory Committee's recommendations relating to GME. Disproportionate Share Hospital (DSH) Funding Joe DaSilva, representing the Texas Hospital Association, Children's Hospital Association of Texas, Texas Conference of Catholic Health Facilities, Texas Association of Public and Non-Profit Hospitals, Texas Organization of Rural and Community Hospitals, and Texas Urban Hospitals and Systems, provided an update on Medicaid DSH Formula Negotiations. After Mr. DaSilva answered questions of the committee, Chairman Moncrief laid out the proposed recommendation for consideration: For the FY 2001 allocation of Disproportionate Share funds, the Health and Human Services Commission should proceed with its proposed rule change, making adjustments to the proposed rule to mitigate the impact on rural hospitals. Prior to allocation of subsequent fiscal years' Disproportionate Share funds, the Commission should make necessary changes to further emphasize uncompensated indigent care in the distribution formula. At least every two years the Commission should evaluate the Disproportionate Share Hospital Funding Program and make necessary rule changes to ensure the program's emphasis on uncompensated care and provision of care in underserved areas of the state. Senator Truan moved to adopt Chairman Moncrief's proposed recommendation. The motion was seconded by Senator Carona. Without objection, the recommendation was adopted. There being no further business, at 3:20 p.m. Senator Truan moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. _________________________ Senator Mike Moncrief, Chair _________________________ Patricia Hicks, Clerk