HBA-NRS H.B. 2419 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2419
By: Coleman
Public Health
3/26/2001
Introduced



BACKGROUND AND PURPOSE 

Current law requires nonprofit hospitals or hospital systems to devote a
specific amount of their net patient revenues to charity care and
government-sponsored indigent health care. House Bill 2419 further develops
charity care reporting requirements, establishes an access fund for charity
care services and requires clarification of charity care policies of
nonprofit hospitals and hospital systems. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Health SECTION
4 (Section 311.0463, Health and Safety Code) of this bill. 

ANALYSIS

House Bill 2419 amends the Health and Safety Code to delete a provision
authorizing a nonprofit hospital or hospital system to elect to provide
community benefits, according to the standard of charity care and
government-sponsored indigent health care provided at a level which is
reasonable in relation to the community needs, the available resources of
the hospital or hospital system, and the tax-exempt benefits received by
the hospital or hospital system (Sec. 311.045).  

The bill authorizes a nonprofit hospital or hospital system to credit
expenditures for community benefits when charity care and community
benefits are provided in a combined amount equal to at least five percent
of the hospital's or hospital system's net patient revenue only if the
nonprofit hospital demonstrates to the Texas Department of Health
(department) how those expenditures will benefit the communities they serve
and the department approves the credit (Sec. 311.045).  

The bill authorizes a nonprofit hospital or hospital system under contract
with a local county to provide indigent health care services under the
Indigent Health Care and Treatment Act to credit direct care provided to an
eligible county resident toward meeting the hospital's or system's charity
care and government-sponsored indigent health care requirement (Sec.
311.045). 

The bill requires a nonprofit hospital to prepare an annual report of the
community benefits plan and to include in the report a detailed disclosure
of the amount and types of community benefits, including information on the
populations affected by the benefits and the anticipated outcomes of those
benefits. The bill requires each hospital to provide to each person who
seeks any health care service at the hospital notice of the charity care
program and the program's charity care and eligibility policies. The bill
requires each hospital to publish notice of the hospital's charity care
program and policies in a local newspaper (Sec. 311.046). 

H.B. 2419 requires the department to publish annually a manual that lists
each nonprofit hospital in this state with a brief summary of the charity
care policies and community benefits that the nonprofit hospital provides.
The bill creates the state access fund (fund) as a trust fund with the
comptroller of public accounts (comptroller) and requires the fund to be
administered by the department as a trustee on behalf of recipients of
money from the fund. The bill sets forth the fund's composition. The bill
authorizes money in the fund to  be used only to finance initiatives to
expand access to charity care and community benefits. The bill authorizes
the department to authorize the commissioner of public health to use money
in the fund for any authorized purpose (Sec. 311.0462). The bill authorizes
a nonprofit hospital or hospital system to credit donations to the fund
toward meeting the hospital's or system's charity care and community
benefits requirements. The bill requires the department to adopt rules for
the administration of provisions related to credit for donations to the
fund (Sec. 311.0463).  

Not later than September 1, 2002, the bill requires the comptroller to
randomly select five nonprofit hospitals from the state and conduct, or
cause to be conducted, an appraisal of the taxable value of the hospitals
(SECTION 5). 

EFFECTIVE DATE

September 1, 2001.