Honorable Lois W. Kolkhorst, Chair, House Committee on Public Health
Ursula Parks, Director, Legislative Budget Board
HB15 by Kolkhorst (Relating to level of care designations for hospitals that provide neonatal and maternal services.), Committee Report 1st House, Substituted
|Fiscal Year||Probable Net Positive/(Negative) Impact to General Revenue Related Funds|
|Fiscal Year||Probable (Cost) from
General Revenue Fund
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|Change in Number of State Employees from FY 2013|
According to HHSC there would be a cost of $80,000 in All Funds, including $40,000 in General Revenue Funds, in fiscal years 2014, 2015, and 2016 associated with travel reimbursement for members of the Perinatal Advisory Council and staff supporting the advisory council. HHSC assumes 16 meetings per fiscal year due to the complex and technical nature of the task force's responsibilities and 10 out-of-town members attending each meeting at a cost of $500 per member per meeting.
According to DSHS, 2.0 full-time equivalents (FTEs) would be required beginning in fiscal year 2014 to coordinate with stakeholders; research and develop rules, policies, and procedures related to level of care designations; and work with the task force and regional advisory councils. Additional FTEs will be required to coordinate and work with the hospitals seeking designation and to review applications from the hospitals; staff is assumed to be phased in due to the staggered nature of the designations (1 FTE hired mid-year of fiscal year 2015, 2 additional FTEs in fiscal year 2016, 1 additional FTE added in fiscal year 2017 and 2018. Estimated General Revenue Fund staffing costs are $115,033 in fiscal year 2014; $144,091 in fiscal year 2015; $338,372 in fiscal year 2016; $405,174 in fiscal year 2017; and $480,523 in fiscal year 2018. According to the agency, staffing costs can be absorbed within available resources in fiscal years 2014 and 2015.
HHSC estimates a cost in fiscal year 2017 of $798,129 in All Funds, including $199,532 in General Revenue Funds, for one-time modifications to the claims processing system. The agency estimates ongoing operations costs of $315,872 in All Funds ($157,936 in General Revenue Funds) in fiscal year 2017 and $253,470 in All Funds ($126,735 in General Revenue Funds) in fiscal year 2018.
The fiscal impact of prohibiting Medicaid reimbursement for neonatal and/or maternal services for any hospital failing to meet the minimum requirements for any level of care designation cannot be determined. Until the system for assigning levels of care has been established, it cannot be determined whether or not any hospital would be prohibited from receiving reimbursement. Additionally, maternal and neonatal services are not defined so it is unclear what services could not be reimbursed.
It is assumed that any cost to study patient transfers would be minimal and could be absorbed by HHSC. Any cost or savings associated with implementing rules related to patient transfers cannot be determined until the results of the study are known.
537 State Health Services, Department of, 529 Health and Human Services Commission
UP, CL, MB, LR, NB, CH