LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 9, 2001 TO: Honorable Patricia Gray, Chair, House Committee on Public Health FROM: John Keel, Director, Legislative Budget Board IN RE: HB2423 by Hawley (Relating to the designation of a hospital as a rural hospital.), Committee Report 1st House, Substituted ************************************************************************** * No significant fiscal implication to the State is anticipated. * ************************************************************************** The bill would direct the Health and Human Services Commission to establish rules to designate hospitals as rural hospitals in order to qualify for federal funds under 42 CFR 411-412 (Medicare). According to the Texas Department of Health, the Texas Medicaid program reimburses hospitals, except for in-state children's hospitals, using a prospective payment system. Medicaid has no designation for a rural hospital. Therefore, according to the Texas Department of Health, there should be little effect on Medicaid expenditures. Local Government Impact No fiscal implication to units of local government is anticipated. Source Agencies: 529 Health and Human Services Commission, 501 Texas Department of Health LBB Staff: JK, HD, KF