By:  Brown                                             S.B. No. 347
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the provision of health care, including prescription
 1-3     drugs, for persons confined in institutions operated by the Texas
 1-4     Department of Criminal Justice.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subsections (a) and (c), Section 501.147,
 1-7     Government Code, are amended to read as follows:
 1-8           (a)  The committee may enter into a contract on behalf of the
 1-9     department to fully implement the managed health care plan under
1-10     this subchapter.  A contract entered into under this subsection
1-11     must include provisions necessary to ensure that The University of
1-12     Texas Medical Branch at Galveston is eligible for and makes
1-13     reasonable efforts to participate in the purchase of prescription
1-14     drugs under  Section 340B, Public Health Service Act (42 U.S.C.
1-15     Section 256b).
1-16           (c)  In contracting for implementation of the managed health
1-17     care plan, the committee, to the extent possible, shall integrate
1-18     the managed health care provider network with the public medical
1-19     schools of this state and the component and affiliated hospitals of
1-20     those medical schools.  The contract must authorize The University
1-21     of Texas Medical Branch at Galveston to contract directly with the
1-22     Texas Tech University Health Sciences Center for the provision of
1-23     health care services.  The Texas Tech University Health Sciences
1-24     Center shall cooperate with The University of Texas Medical Branch
1-25     at Galveston in its efforts to participate in the purchase of
 2-1     prescription drugs under Section 340B, Public Health Service Act
 2-2     (42 U.S.C. Section 256b).
 2-3           SECTION 2.  Subsection (a), Section 501.148, Government Code,
 2-4     is amended to read as follows:
 2-5           (a)  The committee shall:
 2-6                 (1)  develop the contracts for health care services in
 2-7     consultation with the department and the health care providers;
 2-8                 (2)  determine a capitation rate reflecting the true
 2-9     cost of correctional health care, including necessary catastrophic
2-10     reserves;
2-11                 (3)  monitor and develop reports on general quality of
2-12     care issues;
2-13                 (4)  act as an independent third party in the
2-14     allocation of money to inmate health care providers, including the
2-15     allocation of money between The University of Texas Medical Branch
2-16     at Galveston and the Texas Tech University Health Sciences Center;
2-17                 (5)  act as an independent third party for the purpose
2-18     of dispute resolution in the event of a disagreement relating to
2-19     inmate health care services between:
2-20                       (A)  the department and the health care
2-21     providers; or
2-22                       (B)  The University of Texas Medical Branch at
2-23     Galveston and the Texas Tech University Health Sciences Center; and
2-24                 (6)  enforce compliance with contract provisions,
2-25     including requiring corrective action if care does not meet
2-26     expectations as determined by quality of care monitoring
 3-1     activities.
 3-2           SECTION 3.  The Correctional Managed Health Care Committee,
 3-3     in cooperation with the Texas Department of Criminal Justice, shall
 3-4     amend any existing contract for the implementation of the managed
 3-5     health care plan established under Section 501.146, Government
 3-6     Code, as necessary to meet the requirements imposed on the contract
 3-7     under Subsections (a) and (c), Section 501.147, Government Code, as
 3-8     amended by this Act, not later than January 1, 2002.
 3-9           SECTION 4.  This Act takes effect September 1, 2001.