SRC-VRA S.B. 1730 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1730
78R5634 CLG-FBy: Gallegos
Health & Human Services
3/26/2003
As Filed


DIGEST AND PURPOSE 

Federal law provides for additional financial assistance under the
Medicaid program to hospitals that care for large numbers of low income
patients with special needs.  The federal government, through the U.S.
Department of Health and Human Services, provides federal matching funds
to states to provide payments to hospitals under the Medicaid
Disproportionate Share Hospital Program (DSH).  The Texas DSH program
provides funds to both public and private hospitals that meet certain
criteria established by the Texas Health and Human Services Commission
pursuant to federal guidelines.  Urban hospitals in Texas are expending
voluminous resources on providing uncompensated emergency and inpatient
care.  Pursuant to state law, counties and hospital districts are required
to provide the indigent care for patients located within their counties or
hospital districts.  However, many county and hospital district facilities
are overcrowded and are unable to fulfill their obligations.  As proposed,
S.B. 1730 increases payments to urban hospitals which provide services to
a high percentage of Medicaid and indigent patients to provide those
hospitals with much needed financial assistance and to acknowledge the
important benefit these hospitals are providing to patients, counties, and
hospital districts.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 32B, Human Resources Code, by adding Section
32.02805, as follows: 

 Sec.  32.02805.  REIMBURSEMENTS UNDER DISPROPORTIONATE SHARE PROGRAM.
(a)  Defines "qualifying hospital." 

(b)  Requires the Health and Human Services Commission, in its rules
prescribing the method and procedures for the reimbursement of a
qualifying hospital under the disproportionate share program, to provide
for a weight factor of 1.5 for a qualifying hospital that meets certain
criteria. 

SECTION 2.  Requires an agency to seek a waiver or authorization from a
federal agency if necessary for implementation of the Act. 

SECTION 3.  Effective date:  September 1, 2003.