LEGISLATIVE BUDGET BOARD
Austin, Texas
 
FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION
 
May 20, 2009

TO:
Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health
 
FROM:
John S. O'Brien, Director, Legislative Budget Board
 
IN RE:
SB288 by Nelson (Relating to improving the quality of health care services provided under certain state programs through certain initiatives, including payment strategies and medication history review requirements.), Committee Report 2nd House, Substituted

No significant fiscal implication to the State is anticipated.

The bill would require the Health and Human Services Commission (HHSC) to establish a health care quality advisory committee.  In addition, the Commission would establish a pilot program relating to a pay-for-performance system for Medicaid or CHIP recipients (or both).  The pilot may require a Medicaid acute care provider to review a patient's medication history contained in an electronic health record prior to providing a health service.  This would be required only in instances where the provider has access to such a record.  Since electronic health records are only available for a limited number of Medicaid clients (foster care health passport), the agency assumed no significant change in provider review processes.  However, if HHSC were required to broadly implement electronic health records, there would likely be implementation costs related to information technology.

HHSC assumes the cost of supporting the advisory committee could be absorbed within existing resources.  The members would not receive travel reimbursement unless specifically provided for in the General Appropriations Act.  The pilot program is assumed to be conducted with existing client services funds for the affected recipients.  While cost savings may accrue and be shared with providers, no estimate was provided by HHSC.  The agency would complete the report on the pilot program using in-house existing resources.


Local Government Impact

No fiscal implication to units of local government is anticipated.


Source Agencies:
529 Health and Human Services Commission
LBB Staff:
JOB, CL, PP, MB