HBA-NMO C.S.H.B. 1398 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1398
By: Coleman
Public Health
4/19/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

In 1985, the 69th Texas Legislature enacted the Indigent Health Care and
Treatment Act  to address the problem of medical indigence in Texas and to
define the basic indigent health care responsibilities of counties, public
hospitals, and hospital districts. 

In 1997, a joint interim charge was issued to the House Committees on
Public Health and County Affairs to review the law and make
recommendations.  The committees' interim report concluded that changes in
health care delivery, health care financing, and the population of this
state, left some situations inadequately addressed. 

C.S.H.B. 1398 authorizes the Texas Department of Health (TDH) to administer
and enforce the Indigent Health Care and Treatment Act, widens the scope of
mandatory and optional indigent health care services, amends eligibility
requirements, modifies state financial assistance to counties, provides for
a tertiary care facility account, and establishes reporting requirements.
This bill also requires TDH make a study relating to basic health care
services and state assistance, and requires the commissioner of health and
human services to establish a regional health care delivery system pilot
program in a region of the state.    

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Department of Health in
SECTION 1.14 (Section 61.037, Health and Safety Code), to the Texas Board
of Health in SECTION 2.01 (Sections 46.002 and 46.004, Health and Safety
Code), and to the commissioner of health and human services in SECTION 5.02
of this bill. 

SECTION BY SECTION ANALYSIS

ARTICLE 1.  DELIVERY OF INDIGENT HEALTH CARE BY COUNTIES, 
PUBLIC HOSPITALS, AND HOSPITAL DISTRICTS

SECTION 1.01.  Amends Section 61.002, Health and Safety Code, to delete the
definition of "AFDC."  Makes conforming changes. 

SECTION 1.02.  Amends Section 61.004, Health and Safety Code, as follows:

Sec. 61.004.  New title:  RESIDENCE OR ELIGIBILITY DISPUTE.  Authorizes the
provider of assistance or the governmental entity or hospital district, if
a provider and a governmental entity or hospital district cannot agree on
whether a person is eligible for assistance under this chapter, in addition
to agreeing on the person's residence, to submit the matter to the Texas
Department of Health (TDH).  Makes a conforming change. 

SECTION 1.03.  Amends Subchapter A, Chapter 61, Health and Safety Code, by
adding Section 61.0045, as follows: 

Sec. 61.0045.  INFORMATION NECESSARY TO DETERMINE ELIGIBILITY.  (a)
Authorizes any provider that delivers health care services to a patient who
the provider suspects is an eligible resident of the service area of a
county, hospital district, or public  hospital under this chapter (Indigent
Health Care and Treatment Act) to require the patient to provide any
information necessary to establish that the patient is an eligible resident
of the applicable service area, and authorize the release of any
information relating to the patient to permit the provider to submit a
claim to the applicable entity. 

(b) Requires a county, hospital district, or public hospital that receives
information obtained under Subsection (a) to use the information to
determining whether the patient to whom services were provided is an
eligible resident of the service area of the applicable entity and, if so,
requires the entity to pay the claim made by the provider in accordance
with this chapter. 

(c) Authorizes that the application, documentation, and verification
procedures established by TDH for counties under Section 61.006 include a
standard format for obtaining information under Subsection (a) to
facilitate eligibility and residence determinations.       

SECTION 1.04.  Amends Sections 61.006 and 61.007, Health and Safety Code,
as follows: 

Sec. 61.006.  STANDARDS AND PROCEDURES.  (a) Requires TDH to establish
minimum eligibility, rather than eligibility, standards for counties to use
in determining eligibility under this chapter. 

(b) Requires the minimum eligibility standards to incorporate a net income
eligibility level equal to 25 percent of the federal poverty level based on
the federal Office of Management and Budget (OMB) poverty index.  Deletes
language to make a conforming change. 

(b-1)  Provides that the minimum eligibility standards, effective January
1, 2000, must incorporate a net income eligibility  level equal to 22
percent of the federal poverty level based on the OMB poverty index.
Provides that this subsection expires December 31, 2000. 

(c) Requires TDH to define the services and establish the payment standards
for the categories of services listed in Section 61.0285 (Optional Health
Care Services), Health and Safety Code, in addition to Section 61.028(a)
(relating to mandatory health care services), Health and Safety Code, in
accordance with DHS rules relating to the Temporary Assistance for Needy
Families (TANF)-Medicaid program.  Makes conforming changes. 

(d) Requires TDH to establish application, documentation, and verification
procedures that are consistent with procedures used to determine
eligibility in the TANF-Medicaid program.  Deletes language relating to the
simplification of standards to provide efficient county administration.
Makes conforming changes. 

(e) Makes conforming changes.

(f) Makes conforming changes.

(g) Makes conforming changes.

(h) Makes conforming changes.

Sec. 61.007.  INFORMATION PROVIDED BY APPLICANT.  Makes conforming changes.

SECTION 1.05.  Amends Section 61.023(b), Health and Safety Code, to
authorize a county, in addition to using a less restrictive standard of
eligibility for residents than prescribed by Subsection (a), to credit the
services provided to all persons who are eligible residents under that
standard toward eligibility for state assistance under this subchapter. 

 SECTION 1.06.  Amends Subchapter B, Chapter 61, Health and Safety Code, by
adding Section 61.0235, as follows: 

Sec. 61.0235.  COUNTY JAIL INMATES.  (a) Authorizes a county to elect to
treat as eligible county residents the inmates of a county jail in the
county who satisfy the eligibility requirements applicable in the county
under Section 61.023(a)(2) and (3) or (b), but who do not reside in the
county or reside in the service area of a public hospital or hospital
district in the county. 

(b) Provides that a county that elects to treat inmates as eligible county
residents under Subsection (a) must waive any right to reimbursement from
other counties or from public hospitals or hospital districts in whose
service areas the inmates reside.   

(c) Authorizes a county to credit the services provided to each inmate who
is treated as an eligible county resident under Subsection (a) toward
eligibility for state assistance under this subchapter. 

SECTION 1.07.  Amends Section 61.025(d), Health and Safety Code, to make
conforming changes.  

SECTION 1.08.  Amends Section 61.028, Health and Safety Code, as follows:

Sec. 61.028.  New title:  BASIC HEALTH CARE SERVICES.  Requires a county to
provide basic health care services designed to meet the needs of the
community, in addition to other mandatory health care services.  Makes
conforming changes. 

SECTION 1.09.  Amends Subchapter B, Chapter 61, Health and Safety Code, by
adding Sections 61.0285, as follows: 

Sec. 61.0285.  OPTIONAL HEALTH CARE SERVICES.  (a) Authorizes a county, in
accordance with TDH rules adopted under 61.006, Health and Safety Code, to
provide certain other medically necessary services or supplies that the
county determines to be costeffective, in addition to mandatory services
provided under Section 61.028, Health and Safety Code.   

(b) Provides that the county must notify TDH of the county's intent to
provide services specified by Subsection (a).  Authorizes the county, if
the services are approved by TDH under Section 61.006, Health and Safety
Code, or if TDH fails to notify the county of its disapproval before the
31st day after the date the county notifies TDH of its intent to provide
the services, to credit the services toward eligibility for state
assistance under this subchapter.   

(c) Authorizes a county to provide health care services that are not
specified in Subsection (a) without actual or constructive approval of the
department, but prohibits the county from crediting those services toward
eligibility for state assistance. 

SECTION 1.10.  Amends Section 61.031(b), Health and Safety Code, to require
that notice of health care services provided be made by telephone not later
than the 72nd hour, rather than as soon as possible, after the provider
determines the patient's county of residence, and by mail postmarked not
later than the fifth, rather than third, working day after the date on
which the provider determines the patient's county of residence.  

SECTION 1.11.  Amends Section 61.032(a), Health and Safety Code, to make
conforming changes. 

SECTION 1.12.  Amends Section 61.034(a), Health and Safety Code, as follows:

Sec. 61.034.  New title:  PAYMENT STANDARDS FOR HEALTH CARE SERVICES.
Deletes "mandatory" from the title.  Makes conforming changes. 

SECTION 1.13.  Amends Section 61.036(b), Health and Safety Code, to make
conforming changes. 
 
SECTION 1.14.  Amends Sections 61.037, 61.038, and 61.039, Health and
Safety Code, as follows: 

Sec. 61.037.  COUNTY ELIGIBILITY FOR STATE ASSISTANCE.  Provides that a
county must spend in a state fiscal year at least eight, rather than 10,
percent of the county general revenue levy for that year to provide health
care service to eligible county residents who qualify for assistance.
Authorizes TDH to waive the requirement that a county meet the minimum
expenditure level and provide that assistance under this chapter at a lower
level determined by TDH if the county demonstrates that it is unable to
satisfy the eight percent expenditure level for certain reasons.  Requires
TDH to adopt rules governing the circumstances under which a waiver is
authorized to be granted and the procedures to be used by a county to apply
for the waiver.  Sets forth procedures regarding TDH determination of
waiver and the submission of monthly financial reports by a county.  Makes
conforming changes. 

Sec. 61.038.  DISTRIBUTION OF ASSISTANCE FUNDS.  Provides that state funds
provided under this section to a county must be equal to at least 90,
rather than 80, percent of the actual payment for the health care services
for the county's eligible residents during the remainder of the state
fiscal year after the eight percent expenditure level is reached. Makes
conforming changes. 

Sec. 61.039.  FAILURE TO PROVIDE STATE ASSISTANCE.  Makes a conforming
change. 

SECTION 1.15.  Amends Section 61.041, Health and Safety Code, by amending
Subsections (a) and (b) and adding Subsection (d), as follows: 

(a) Makes a conforming change.

(b) Makes conforming changes.

(d) Requires TDH to establish annual reporting requirements for each county
that is required to provide indigent health care under this chapter but
that is not required to report.  Provides that a county satisfies the
annual reporting requirement if the county submits information to TDH as
required by law to obtain an annual distribution under the Agreement
Regarding Disposition of Settlement Proceeds filed on July 24, 1998, in the
United States District Court, Eastern District of Texas, in the case styled
The State of Texas v. The American Tobacco Co., et al., No. 5-96CV-91. 

SECTION 1.16.  Amends Section 61.052, Health and Safety Code, by adding
Subsection (g), as follows: 

(g) Authorizes a county that provides health care services to its eligible
residents through a hospital established by a board of managers jointly
appointed by a county and a municipality that establishes an income and
resources standard in accordance with this section (General Eligibility
Provisions) to credit the services provided to all persons who are eligible
under that standard toward eligibility for state assistance. 

SECTION 1.17.  Amends Section 61.054(a), Health and Safety Code, to require
a public hospital to provide the basic health care, rather than inpatient
and outpatient hospital, services a county is required to provide.  Makes
conforming changes. 

SECTION 1.18.  Amends Section 61.055, Health and Safety Code, to require a
hospital district to provide the basic health care services a county is
required to provide under Section 61.028, Health and Safety Code, together
with any other services required under the Texas Constitution and the
statute creating the district. 

SECTION 1.19.  Amends Section 61.058(b), Health and Safety Code, to make
conforming changes. 

SECTION 1.20.  Amends Section 61.059(a), Health and Safety Code, to make
conforming changes. 
 
SECTION 1.21.  Amends Section 61.062, Health and Safety Code, to make
conforming changes. 

SECTION 1.22.  Amends Section 61.064(a), Health and Safety Code, to make
conforming changes. 

SECTION 1.23.  Amends Section 531.204(b), Government Code, to provide that
the report of the Texas Integrated Enrollment Services (TIES) Legislative
Oversight Committee must include an analysis of the feasibility of
including indigent health care programs provided by counties, public
hospitals, and hospital districts in the TIES, a schedule for inclusion of
these programs, and a statement of how TIES may be structured to address
the wide variation in information systems used by counties, public
hospitals, and hospital districts. 

SECTION 1.24.  Amends Chapter 26, Tax Code, by adding Section 26.0441, as
follows: 

Sec. 26.0441.  TAX RATE ADJUSTMENT FOR INDIGENT HEALTH CARE.  Sets forth
the procedure for tax rate adjustment for indigent health care. 

SECTION 1.25.  Makes application of this Article prospective to January 1,
2000. 

SECTION 1.26. Requires TDH to study the feasibility of requiring or
permitting a county, public hospital, and hospital district to issue a
uniform identification card to eligible county resident or eligible service
area resident, as appropriate, that identifies the resident as eligible for
health care assistance under Chapter 61, Health and Safety Code.  Requires
TDH, not later than December 15, 2000, to report the results of its study
to the governor, lieutenant governor, and the speaker of the house of
representatives. 

ARTICLE 2.  TERTIARY CARE

SECTION 2.01.  Amends Subtitle B, Title 2, Health and Safety Code, by
adding Chapter 46, as follows: 

CHAPTER 46.  TERTIARY MEDICAL CARE

Sec. 46.001.  DEFINITIONS.  Defines "tertiary care facility," "tertiary
medical services," and "unreimbursed tertiary medical service." 

Sec. 46.002.  RULES.  Authorizes the Texas Board of Health (board) to adopt
rules to implement this chapter.   

Sec. 46.003.  TERTIARY CARE FACILITY ACCOUNT.  Provides that the tertiary
care facility account is an account in the state treasury.  Authorizes the
appropriation of money in the account only to TDH for the purposes of this
chapter.  Authorizes TDH to seek and accept gifts, grants, and donations
from any public or private entity on behalf of the account. Provides that
Section 403.095 (Use of Dedicated Revenue), Government Code, does not apply
to the account.  Requires that five percent of the total amount in the
account, for each fiscal year, be held in reserve and authorizes its use
only to pay for unreimbursed tertiary medical services provided as a result
of extraordinary emergencies occurring during that year in accordance with
this chapter.  Prohibits more than five percent of the amount remaining
from being used for the costs of administering  the account. 

Sec. 46.004.  COLLECTION OF INFORMATION.  Requires a tertiary care facility
that seeks payment under this chapter to submit to TDH, in the manner and
the time required by TDH, information that related to the unreimbursed
tertiary medical services provided to persons who reside outside the
service area of the county, public hospital, or hospital district that is
responsible for indigent health care under Chapter 61 in the area in which
the tertiary care facility is located.  Requires the board to adopt rules
governing the collection of such information. 

Sec. 46.005.  CERTIFICATION TO COMPTROLLER.  (a) Requires TDH to certify to
the comptroller for each tertiary care facility the cost of unreimbursed
tertiary medical services  provided by the facility to persons who reside
outside the service area of the county, public, hospital, or hospital
district that is responsible for indigent health care under Chapter 61 in
the area in which the tertiary care facility is located. 

(b) Requires TDH, each year, for a facility that was a designated tertiary
care facility during the previous year, an initial certification to the
comptroller under Subsection (a) in an amount that equals 80 percent of the
amount certified under this section for the facility in the previous year.
Requires TDH to make a subsequent certification of the cost of additional
unreimbursed tertiary medical services provided  by the facility on receipt
from the facility of the information required to be submitted under Section
46.004. 

(c) Requires TDH, if in any year the total cost of unreimbursed tertiary
medical services certified under Subsection (a) for all tertiary care
facilities exceeds the amount available for payment to the facilities under
Section 46.003(e), to allocate the amount available under Section 46.003(e)
to each facility based on the percentages computed by dividing the cost of
the facility's unreimbursed tertiary medical services by the total cost of
all facilities' unreimbursed tertiary medical services. 

(d) Provides that the cost of each unreimbursed tertiary medical service
provided, for the purposes of Section 46.006, is the average amount payable
under Medicare for services for the Medicare diagnosis related groups
applicable to the tertiary medical services provided by a tertiary care
facility. 

Sec. 46.006.  CERTIFICATION OF EMERGENCIES.  Requires TDH, for the purposes
of reimbursing extraordinary emergencies under this chapter, to certify an
extraordinary emergency if an emergency is declared by the governor or the
president of the U.S., or for another similar disaster TDH finds has
resulted in an extraordinary cost to a tertiary care facility.  Requires
TDH, if an extraordinary emergency is declared, to certify to the
comptroller the amount of unreimbursed tertiary medical services incurred
by a tertiary care facility during the emergency.  Requires the comptroller
to pay the tertiary care facility.  

ARTICLE 3.  FEDERAL AUTHORIZATION FOR STATE
MEDICAID PROGRAM

SECTION 3.01.  FEDERAL AUTHORIZATION.  Sets forth legislative intent.

ARTICLE 4.  STUDY RELATING TO BASIC HEALTH CARE 
SERVICES AND STATE ASSISTANCE

SECTION 4.01.  STUDY.  Requires TDH to study the provision of basic health
care services by counties, hospital districts, and public hospitals under
Chapter 61, Health and Safety Code,  and the cost of providing those
services.  Requires TDH to study the threshold for eligibility for state
assistance to a county established under Section 61.037 (County Eligibility
for State Assistance), Health and Safety Code, and develop a threshold to
replace the threshold established under that section that is stated as a
formula that reflects a county's fiscal capacity,  health care resources,
and demographics. 

SECTION 4.02.  REPORT.  Requires TDH, not later than December 1, 2000, to
submit a written report of the study conducted under this article to the
governor, lieutenant governor, and the speaker of the house of
representatives.  Provides that the report must include the recommendations
of the work group with the proposed eligibility threshold. 

SECTION 4.03.  EXPIRATION.  Provides that this article expires August 31,
2001.   

ARTICLE 5.  PILOT PROGRAM FOR REGIONAL HEALTH
CARE DELIVERY SYSTEM

SECTION 5.01.  DEFINITIONS.  Defines "commissioner" and "pilot program." 
 
 SECTION 5.02.  PILOT PROGRAM.  Requires the commissioner of health and
human services (commissioner), not later than January 1, 2000, to establish
a regional health care delivery system pilot program (pilot program) to
coordinate the use of health care resources in a region of the state.
Provides that the pilot program must address certain issues.  Authorizes
the commissioner to adopt rules as necessary to implement the pilot
program.  Authorizes that the rules provide an alternative funding
structure to the funding structure established under Chapter 61, Health and
Safety Code. Prohibits the commissioner from requiring a county, public
hospital, hospital district, or other entity to participate in the pilot
program 

SECTION 5.03.  REPORT.  Requires the commissioner, not later than January
1, 2003, to submit a written report relating to the pilot program to the
governor, lieutenant governor, and the speaker of the house of
representatives.  Sets forth the required composition of the report. 

SECTION 5.04.  EXPIRATION; TERMINATION OF PILOT PROGRAM.  Provides that
this section expires and the pilot program is terminated August 31, 2003. 

ARTICLE 6.  EFFECTIVE DATE; EMERGENCY

SECTION 6.01.  Effective date: September 1, 1999.

SECTION 6.02.  Emergency clause.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute differs from the original in ARTICLE 1, as follows:

Modifies SECTION 1.02 by amending Section 61.004, Health and Safety Code,
relating to residence or eligibility dispute, rather than amending
Subchapter A, Chapter 61, Health and Safety Code, by adding Section 61.0055
(Administration and Enforcement; Rules). 

Creates a new SECTION 1.03 that amends Subchapter A, Chapter 61, Health and
Safety Code, by adding Section 61.0045 (Information Necessary to Determine
Eligibility).  For a complete analysis of this new section, please see the
Section-by-Section Analysis portion of this document.  

Redesignates SECTION 1.03 of the original, which amends Sections 61.006 and
61.007, Health and Safety Code, as SECTION 1.04.  Modifies the proposed
amendment of Section 61.006 by providing that the minimum health care
assistance eligibility standards must incorporate a net income eligibility
level equal to 25 percent of the federal poverty level based on the federal
Office of Management and Budget poverty index, rather than prohibiting the
eligibility standards from being more restrictive than the eligibility
standards used by the Texas Department of Human Services to determine
eligibility in the Temporary Assistance for Needy Families (TANF)-Medicaid
program.  Modifies Section 61.006 by adding new Subsection (b-1) to provide
that the minimum eligibility standards, effective January 1, 2000, must
incorporate a net income eligibility  level equal to 22 percent of the
federal poverty level based on the OMB poverty index, and  that Subsection
(b-1) expires December 31, 2000. Further modifies Section 61.006 by
requiring, rather than authorizing, TDH to establish application,
documentation, and verification procedures that are consistent with the
analogous, rather than different from and less restrictive than the,
procedures used to determine eligibility in the TANF-Medicaid program.
Further modifies Section 61.006 by deleting proposed new Subsection (f)
relating to the entitled eligibility  of certain persons, and by making
conforming changes. 

Redesignates SECTION 1.04 of the original as SECTION 1.05 of the substitute.

Creates a new SECTION 1.06 that amends Subchapter B, Chapter 61, Health and
Safety Code, by adding Section 61.0235 (County Jail Inmates).  For a
complete analysis of this new section, please see the Section-by-Section
Analysis portion of this document.  

 Redesignates SECTION 1.05 of the original, which amends Section 61.025(d),
Health and Safety Code, as SECTION 1.07 and modifies it by making a
conforming change. 

Redesignates SECTION 1.06 of the original, which amends Section 61.028,
Health and Safety Code, as SECTION 1.08.  Modifies the proposed amendment
of Section 61.028 by requiring the county to provide certain basic, rather
than mandatory, health care services. Modifies it by reflecting change in
the title of the section.  Modifies it by making conforming changes.    

Redesignates SECTION 1.07 of the original, which amends Subchapter B,
Chapter 61, Health and Safety Code, by adding Section 61.0285 (Optional
Health Care Services) and 61.0286 (Premium Payments for Health Benefit
Plan), as SECTION 1.09.  Modifies SECTION 1.09 by deleting the addition of
Section 61.0286.  Modifies proposed Section 61.0285 by changing proposed
language in Subsections (a) and (b) and adding Subsection (c) regarding
optional health care services. 

Creates a new SECTION 1.10 to amend Section 61.031(b), Health and Safety
Code, to require that notice of health care services provided, made by a
provider of assistance to a patient's county of residence, be made by
telephone not later than the 72nd hour, rather than as soon as possible,
after the provider determines the patient's county of residence, and by
mail postmarked not later than the fifth, rather than third, working day
after the date on which the provider determines the patient's county of
residence.  

Creates a new SECTION 1.11 to amend Section 61.032(a), Health and Safety
Code,  to make a conforming change. 

Redesignates SECTION 1.08 of the original, which amends Section 61.034,
Health and Safety Code, as SECTION 1.12, and modifies it by making
conforming changes to the title and the text. 

Redesignates SECTION 1.09 of the original, which amends Section 61.036(b),
Health and Safety Code, as SECTION 1.13. 

Redesignates SECTION 1.10 of the original, which amends Sections 61.037,
61.038, and 61.039, Health and Safety Code, as SECTION 1.14.  Modifies the
proposed amendment of Section 61.037 by adding new Subsections (g) and (h)
regarding the authority of TDH to waive the requirement of a county to meet
the minimum health care assistance expenditure level, and by making
conforming changes.  Modifies the proposed amendment to Section 61.038 by
making conforming changes. 

Deletes SECTION 1.11 of the original, the addition of Section 61.0395
(Additional State Assistance for  Out-of-County Tertiary Care), Health and
Safety Code. 

Redesignates SECTION 1.12 of the original, which amends Section 61.041,
Health and Safety Code, as SECTION 1.15.  Modifies the proposed amendment
of Section 61.041 by deleting proposed language regarding the reporting
requirements of all counties, by adding a new Subsection (d) regarding
annual reporting requirements, and by making conforming changes. 

Deletes SECTION 1.13 of the original, the addition of Section 61.0415
(Performance Standards for Primary and Preventative Care), Health and
Safety Code. 

Redesignates SECTION 1.14 of the original, which amends Section 61.054(a),
Health and Safety Code, as SECTION 1.17, and modifies it by making
conforming change. 

Redesignates SECTION 1.15 of the original, which amends Section 61.055,
Health and Safety Code, as SECTION 1.18, and modifies it to make a
conforming change. 

Deletes SECTION 1.16 of the original, which amends Section 157.006, Local
Government  Code. 

Creates a new SECTION 1.19 to amend Section 61.058(b), Health and Safety
Code, to make a conforming change. 

Creates a new SECTION 1.20 to amend Section 61.059(a), Health and Safety
Code, to make a conforming change. 

Creates a new SECTION 1.21 to amend Section 61.062, Health and Safety Code,
to make conforming changes. 

Redesignates SECTION 1.17 of the original, which amends Section 531.204(b),
Government Code, as SECTION 1.23. 

Creates new SECTION 1.24 to amends Chapter 26, Tax Code, by adding Section
26.0441 (Tax Adjustment for Indigent Health Care).  For a complete analysis
of this new section, please see the Section-by-Section Analysis portion of
this document.  

Redesignates SECTION 1.18 of the original, which makes application of
Article 1 prospective to January 1, 2000, as SECTION 1.25. 

Creates new SECTION 1.26, regarding a TDH study of uniform identification
cards for health care assistance. 

Creates a new ARTICLE 2 (Tertiary Care), to amend Subtitle B, Title 2,
Health and Safety Code, by adding Chapter 46 (Tertiary Medical Care).  For
a complete analysis of this new section, please see the Section-by-Section
Analysis portion of this document.  

Redesignates ARTICLE 2 of the original (Federal Authorization for State
Medicaid Program) as ARTICLE 3, and modifies it by adding Subdivision (3)
regarding legislative intent. 

Redesignates ARTICLE 3 of the original (Threshold for State Assistance to
Counties) as ARTICLE 4, and retitles it "Study Relating to Basic Health
Care Services and State Assistance."   

Redesignates SECTION 3.01 of the original as SECTION 4.01, and modifies it
by requiring TDH to study the provision of basic health care services by
counties, hospital districts, and public hospitals under Chapter 61, Health
and Safety Code,  and the cost of providing those services; and by making
conforming and nonsubstantive changes. 

Deletes SECTION 3.02 of the original (Work Group).

Redesignates SECTION 3.03 of the original (Report) as SECTION 4.02, and
modifies it by making a conforming change. 

Redesignates SECTION 3.04 or the original (Expiration) as SECTION 4.03.

Redesignates ARTICLE 4 of the original (Pilot Program for Regional Health
Care Delivery System) as ARTICLE 5.   

Redesignates SECTION 4.01 of the original (Definitions) as SECTION 5.01,
and modifies it by deleting definitions of "fund," "hospital district,"
"public hospital," and "regional advisory committee." 

Redesignates SECTION 4.02 of the original (Pilot Program) as SECTION 5.02,
and modifies it by requiring the commissioner of health and human services
(commissioner), not later than January 1, 2000, to establish a regional
health care delivery system pilot program (pilot program) to coordinate the
use of health care resources in a region of the state, rather than
requiring the commissioner to establish a regional health care delivery
system pilot program in one region of the state.  Further modifies SECTION
5.02 by providing that the pilot  program must address certain issues;
authorizing the commissioner to adopt rules as necessary to implement the
pilot program; authorizing that the rules provide an alternative funding
structure to the funding structure established under Chapter 61, Health and
Safety Code; prohibiting the commissioner from requiring a county, public
hospital, hospital district, or other entity to participate in the pilot
program; and deleting proposed language regarding establishment of the
pilot program. 

Deletes SECTIONS 4.03 (Regional Health Care Delivery System Trust Fund),
4.04 (Regional Health Care Delivery System), 4.05 (Rules), and 4.06
(Delegation of Power or Duties) of the original. 

Redesignates SECTION 4.07 (Report) as SECTION 5.03, and modifies it by
making conforming changes. 

Redesignates SECTION 4.08 (Expiration; Termination of Pilot Program) as
SECTION 5.04. 

Redesignates ARTICLE 5 of the original (Effective Date; Emergency) as
ARTICLE 6.