LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 17, 2001
  
  
          TO:  Honorable James E. "Pete" Laney, Speaker of the House,
               House of Representatives
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1001  by Naishtat (Relating to the review of the
               reimbursement methodology for and resource needs of
               nursing facilities.), As Passed 2nd House
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1001, As Passed 2nd House:  negative impact of $(500,000)           *
*  through the biennium ending August 31, 2003.                          *
*                                                                        *
*  The bill would make no appropriation but could provide the legal      *
*  basis for an appropriation of funds to implement the provisions of    *
*  the bill.                                                             *
**************************************************************************
  
General Revenue-Related Funds, Five-Year Impact:
  
          ****************************************************
          *  Fiscal Year  Probable Net Positive/(Negative)   *
          *               Impact to General Revenue Related  *
          *                             Funds                *
          *       2002                           $(500,000)  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
***************************************************************************
*Fiscal    Probable Savings/(Cost) from    Probable Savings/(Cost) from   *
* Year         General Revenue Fund          Federal Funds - Federal      *
*                      0001                            0555               *
*  2002                        $(500,000)                      $(500,000) *
*  2003                                 0                               0 *
*  2004                                 0                               0 *
*  2005                                 0                               0 *
*  2006                                 0                               0 *
***************************************************************************
  
Fiscal Analysis
  
The bill would require the Health and Human Services Commission (HHSC)
and the Department of Human Services (DHS) to evaluate nursing
facilities' Medicaid rate reimbursement methodology including the Texas
Index for Level of Effort (TILE) classification system. The bill would
also require a report on the evaluation to the Legislature not later
than September 1, 2002. The effective date would be September 1, 2001.
  
  
Methodology
  
HHSC and DHS indicate that an outside contractor would be needed to
conduct the evaluation.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   529   Health and Human Services Commission, 324
                   Texas Department of Human Services
LBB Staff:         JK, HD, AJ, KF