78R5634 CLG-F

By:  Edwards                                                      H.B. No. 1585



A BILL TO BE ENTITLED

AN ACT

relating to reimbursements to certain urban hospitals under the 
disproportionate share program.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 32, Human Resources Code, 
is amended by adding Section 32.02805 to read as follows:
	Sec. 32.02805.  REIMBURSEMENTS UNDER DISPROPORTIONATE SHARE 
PROGRAM.  (a)  In this section, "qualifying hospital" means a 
hospital eligible for medical assistance disproportionate share 
funds.
	(b)  The department, in its rules prescribing the method and 
procedures for the reimbursement of a qualifying hospital under the 
disproportionate share program, must provide for a weight factor of 
1.5 for a qualifying hospital:
		(1)  that is located in a metropolitan statistical 
area, as defined by the United States Office of Management and 
Budget, with a population of more than one million; and
		(2)  for which at least 40 percent of the hospital's 
gross revenue during a calendar year is attributable to patients 
receiving medical assistance or uncompensated care.
	SECTION 2.  If before implementing any provision of this Act 
a state agency determines that a waiver or authorization from a 
federal agency is necessary for implementing that provision, the 
agency affected by the provision shall request the waiver or 
authorization and may delay implementing that provision until the 
waiver or authorization is granted.
	SECTION 3.  This Act takes effect September 1, 2003.