Office of House Bill AnalysisC.S.H.B. 2419
By: Coleman
Public Health
Committee Report (Substituted)


Current law requires nonprofit hospitals or hospital systems to devote a
specific amount of their net patient revenues to charity care and
government-sponsored indigent health care.  C.S.H.B. 2419 further develops
charity care reporting requirements and requires clarification of charity
care policies of nonprofit hospitals and hospital systems. 


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution.  


C.S.H.B. 2419 amends the Health and Safety Code to authorize a nonprofit
hospital or hospital system under contract with a local county to provide
indigent health care services under the Indigent Health Care and Treatment
Act to credit unreimbursed costs from direct care provided to an eligible
county resident toward meeting the hospital's or system's charity care and
government-sponsored indigent health care requirement.  The bill requires
each hospital to provide to each person who seeks any health care service
at the hospital notice of the charity care program and the program's
charity care and eligibility policies.  The bill requires each hospital to
publish annually a notice of the hospital's charity care program and
policies in a local newspaper.  C.S.H.B. 2419 requires the Texas Department
of Health (department) to publish annually a manual that lists each
nonprofit hospital in this state with a brief summary of the charity care
policies and community benefits that the nonprofit hospital provides. 


September 1, 2001.


C.S.H.B. 2419 modifies the original bill by reinstating a provision
authorizing a nonprofit hospital or hospital system to elect to provide
community benefits, according to the standard of charity care and
governmentsponsored indigent health care provided at a level which is
reasonable in relation to the community needs, the available resources of
the hospital or hospital system, and the tax-exempt benefits received by
the hospital or hospital system.  The substitute specifies that the direct
care that a nonprofit hospital or hospital system may credit is the
unreimbursed costs from direct care.  The substitute removes provisions
authorizing a nonprofit hospital or hospital system to credit expenditures
for community benefits under the standard that the care and benefits are
provided in an amount equal to at least five percent of the net revenue.
The substitute removes provisions  requiring the  annual report of the
community benefits plan to include the populations affected and the
anticipated outcomes.  The substitute removes provisions relating to a
state access fund.  The substitute removes the provision requiring the
comptroller of public accounts to conduct an appraisal of the taxable value
of the hospitals.