By Hawley                                             H.B. No. 2426
         77R6552 YDB-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to disbursements to rural hospitals from the tertiary care
 1-3     account.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 46.001, Health and Safety Code, as added
 1-6     by Chapters 969 and 1377, Acts of the 76th Legislature, Regular
 1-7     Session, 1999, is amended by adding Subdivisions (6), (7), and (8)
 1-8     to read as follows:
 1-9                 (6)  "Rural emergency medical services" means services
1-10     provided by a rural hospital to respond to an individual's
1-11     perceived need for immediate medical care or to prevent death or
1-12     aggravation of physiological or psychological illness or injury.
1-13                 (7)  "Rural hospital" means a general acute care
1-14     hospital licensed under Chapter 241 that is located in a county:
1-15                       (A)  with a population of 35,000 or less; or
1-16                       (B)  with a population of more than 35,000, but
1-17     that has fewer than 101 licensed hospital beds and is not in an
1-18     urbanized area as determined by the United States Census Bureau.
1-19                 (8)  "Unreimbursed rural emergency medical services"
1-20     means rural emergency medical services for which a rural hospital
1-21     has not received full payment from any public or private source.
1-22           SECTION 2.  Section 46.002, Health and Safety Code, as added
1-23     by Chapters 969 and 1377, Acts of the 76th Legislature, Regular
1-24     Session, 1999, is amended to read as follows:
 2-1           Sec. 46.002.  RULES. (a)  The board may adopt rules to
 2-2     implement a system that encourages hospitals to provide tertiary
 2-3     medical services, [and] stabilization services, and rural emergency
 2-4     medical services.
 2-5           (b)  The rules must address:
 2-6                 (1)  coordination of tertiary medical services, [and]
 2-7     stabilization services, and rural emergency medical services among
 2-8     health care facilities in the delivery area;
 2-9                 (2)  pre-hospital care management guidelines for
2-10     triage, transfer, and transportation of patients and periodic
2-11     evaluation of tertiary care facilities', [and] level IV trauma
2-12     facilities', and rural hospitals' compliance with the guidelines
2-13     and the trauma facility rules, as appropriate;
2-14                 (3)  requirements for data collection, including
2-15     patient outcomes;
2-16                 (4)  assurances that tertiary care facilities will not
2-17     refuse to accept the transfer of a patient solely because of the
2-18     person's inability to pay for services or because of the person's
2-19     age, sex, race, religion, or national origin; and
2-20                 (5)  enforcement of the rules.
2-21           SECTION 3. Sections 46.003(e) and (f), Health and Safety
2-22     Code, as added by Chapters 969 and 1377, Acts of the 76th
2-23     Legislature, Regular Session, 1999, are amended to read as follows:
2-24           (e)  For each fiscal year, five percent of the total amount
2-25     in the account shall be held in reserve and may be used only for
2-26     reimbursement of unpaid tertiary medical services, [and]
2-27     stabilization services, and rural emergency medical services
 3-1     provided as a result of extraordinary emergencies occurring during
 3-2     that year.  Of the amount remaining, not more than five percent may
 3-3     be used for the costs of administering the account.
 3-4           (f)  Except as provided by Subsection (e), the account shall
 3-5     be allocated for payment to tertiary care facilities and level IV
 3-6     trauma centers for unreimbursed tertiary medical services, [and]
 3-7     stabilization services, and rural emergency medical services, as
 3-8     provided for in Sections 46.005 and 46.006.
 3-9           SECTION 4. Section 46.004(a), Health and Safety Code, as
3-10     added by Chapters 969 and 1377, Acts of the 76th Legislature,
3-11     Regular Session, 1999, is amended to read as follows:
3-12           (a)  Each tertiary care facility, [or] level IV trauma, or
3-13     rural hospital facility that seeks payment under this chapter shall
3-14     submit to the department, in the manner and at the time required by
3-15     the department, information that relates to the unreimbursed
3-16     tertiary medical services, [or] stabilization services, or rural
3-17     emergency medical services provided to persons who reside outside
3-18     the service area of the county, public hospital, or hospital
3-19     district that is responsible for indigent health care under Chapter
3-20     61 in the area in which the tertiary care facility, [or] level IV
3-21     trauma facility, or rural hospital is located.
3-22           SECTION 5. Section 46.005(b), Health and Safety Code, as
3-23     added by Chapters 969 and 1377, Acts of the 76th Legislature,
3-24     Regular Session, 1999, is amended to read as follows:
3-25           (b)  In each fiscal year the department shall use at least 80
3-26     [86] percent of the appropriated money in the tertiary care account
3-27     to compensate tertiary care facilities for unreimbursed tertiary
 4-1     medical services.
 4-2           SECTION 6. Sections 46.006 and 46.007, Health and Safety
 4-3     Code, as added by Chapters 969 and 1377, Acts of the 76th
 4-4     Legislature, Regular Session, 1999, are amended to read as follows:
 4-5           Sec. 46.006.  CERTIFICATION TO COMPTROLLER OF UNREIMBURSED
 4-6     STABILIZATION SERVICES AND UNREIMBURSED RURAL EMERGENCY MEDICAL
 4-7     SERVICES. (a)  The department shall certify to the comptroller for
 4-8     each tertiary care facility, [or] level IV trauma facility, or
 4-9     rural hospital the cost of unreimbursed stabilization services or
4-10     unreimbursed rural emergency medical services provided to persons
4-11     who reside outside the service area of the county, public hospital,
4-12     or hospital district that is responsible for indigent health care
4-13     under Chapter 61 in the area in which the tertiary care facility,
4-14     [or] level IV trauma facility, or rural hospital is located.
4-15           (b)  In each fiscal year the department shall use no more
4-16     than 10 [four] percent of the appropriated money in the tertiary
4-17     care account to compensate tertiary care facilities, [and] level IV
4-18     trauma facilities, or rural hospitals for unreimbursed
4-19     stabilization services or unreimbursed rural emergency medical
4-20     services.
4-21           (c)  Each year the department shall make, for a facility that
4-22     operated as a tertiary care facility, [or] level IV trauma
4-23     facility, or rural hospital during the previous year, an initial
4-24     certification to the comptroller under Subsection (a)  in an amount
4-25     that equals 80 percent of the amount certified under this section
4-26     for the facility in the previous year.  The department shall make a
4-27     subsequent certification of the cost of additional unreimbursed
 5-1     stabilization services and unreimbursed rural emergency medical
 5-2     services provided by the facility on receipt from the facility of
 5-3     the information required to be submitted under Section 46.004.
 5-4           (d)  Except as provided by Subsection (e), each year the
 5-5     comptroller shall pay a tertiary care facility, [or] level IV
 5-6     trauma facility, or rural hospital the certified amount determined
 5-7     under Subsection (a)  from the funds specified under Section
 5-8     46.003(f).
 5-9           (e)  If in any year the total cost of unreimbursed
5-10     stabilization services and unreimbursed rural emergency medical
5-11     services certified under Subsection (a)  for all tertiary care
5-12     facilities, [or] level IV trauma facilities, or rural hospitals
5-13     exceeds the amount available for payment to the facilities under
5-14     Section 46.003(f), as limited by Subsection (b), the department
5-15     shall allocate the amount available under Section 46.003(f) to each
5-16     facility based on the percentages computed by dividing the cost of
5-17     the facility's unreimbursed stabilization services and unreimbursed
5-18     rural emergency medical services by the total cost of all
5-19     facilities' unreimbursed stabilization services and unreimbursed
5-20     rural emergency medical services.  The comptroller shall pay each
5-21     tertiary care facility, [or] level IV trauma facility, or rural
5-22     hospital based on the allocation made under this subsection.
5-23           (f)  For purposes of this section and Section 46.007, the
5-24     cost of each service provided by a tertiary care facility, [or]
5-25     level IV trauma facility, or rural hospital is the average amount
5-26     payable under Medicare reimbursement policies for that service.
5-27           Sec. 46.007.  CERTIFICATION OF EMERGENCIES. (a)  For purposes
 6-1     of reimbursing extraordinary emergencies under this chapter, the
 6-2     department shall certify an extraordinary emergency:
 6-3                 (1)  if the governor issues an executive order or a
 6-4     proclamation under Chapter 418, Government Code;
 6-5                 (2)  if a disaster is declared by the president of the
 6-6     United States under the Robert T. Stafford Disaster Relief and
 6-7     Emergency Assistance Act (42 U.S.C. Section 5121 et seq.); or
 6-8                 (3)  for another similar disaster the department finds
 6-9     has resulted in an extraordinary cost to a tertiary care facility,
6-10     [or] level IV trauma facility, or rural hospital.
6-11           (b)  If an extraordinary emergency is certified under
6-12     Subsection (a), the department shall certify to the comptroller the
6-13     amount of unreimbursed tertiary medical services, [or]
6-14     stabilization services, rural emergency medical services, or
6-15     transportation services incurred by a tertiary care facility, [or]
6-16     level IV trauma facility, or rural hospital, as appropriate, during
6-17     the emergency.
6-18           (c)  Except as provided by Subsection (d), each year the
6-19     comptroller shall pay a tertiary care facility, [or] level IV
6-20     trauma facility, or rural hospital the certified amount determined
6-21     under Subsection (b) from the funds specified under Section
6-22     46.003(e).
6-23           (d)  If in any year the total cost of unreimbursed tertiary
6-24     medical services, [or] stabilization services, or rural emergency
6-25     medical services certified under Subsection (b) for all facilities
6-26     exceeds the amount available for payment to the facilities under
6-27     Section 46.003(e), the department shall allocate the amount
 7-1     available under Section 46.003(e) to each facility based on the
 7-2     percentages computed by dividing the cost of the facility's [or
 7-3     provider's] unreimbursed services by the total cost of all
 7-4     facilities' unreimbursed services.  The comptroller shall pay each
 7-5     tertiary care facility, [or] level IV trauma facility, or rural
 7-6     hospital based on the allocation made under this subsection.
 7-7           SECTION 7. This Act takes effect September 1, 2001.