HBA-MPM C.S.H.B. 3504 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 3504
By: Solis, Jim
Public Health
4/12/1999
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

The Texas Center for Infectious Diseases in San Antonio and South Texas
Hospital in Harlingen, opening in 1954 and 1956, respectively, were built
to treat tuberculosis in Texas.  Additionally, these facilities were
authorized to treat other persons with infectious or chronic respiratory
ailments; to quarantine individuals under specified conditions; and to
provide patient care, research, education, and support services for the
Texas Department of Health (TDH) bureaus, public health regions, local
health departments, and other TDH contractors. 

Due to the growing need for indigent health care, South Texas Hospital was
authorized by the Texas Legislature in 1983 to broaden its scope to include
medical and sub-acute surgical services, in addition to the authority to
provide cancer screenings, and diagnostic, educational, obstetrical,
gynecological, and other inpatient services.  South Texas Hospital serves
as the major provider of sub-acute indigent care in its region. 

Both hospitals' programs were found in 1996 to comply with regulations
specified by the Joint Commission on Accreditation of Healthcare
Organizations (JCAHO), however, serious design and structural deficiencies
were indicated at both facilities, resulting in JCAHO notification that
they would not be re-accredited in 1999 unless a plan was developed to
renovate the old facilities or construct new ones.  During the 75th Texas
Legislature, TDH requested appropriations to bring the facilities up to
JCAHO standards, which resulted in appropriation Rider 44 which directed
TDH to develop a long-range plan to determine the future of these two
facilities. 

C.S.H.B. 3504 establishes a long-range plan for South Texas Hospital.
Specifically, it requires TDH to contract for the construction of a new
facility for outpatient health care services out of appropriated funds
either at the hospital's original site, or colocated with the Regional
Academic Health Center at a common site in Harlingen.  This bill also
addresses the transfer of services from the old facility to the new,
contracts with public or private health care providers for services
provided to the new facility, interim health care services, and issues
affecting displaced state employees of South Texas Hospital. 

RULEMAKING AUTHORITY

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  CONSTRUCTION OF NEW PHYSICAL FACILITY FOR OUTPATIENT HEALTH
CARE SERVICES.  (a)  Requires the Texas Department of Health (TDH) to
contract for the construction of a new physical facility for outpatient
health care services out of appropriated funds. Provides that the facility
is required to be located at the site of the South Texas Hospital or
colocated with the initial site of the Regional Academic Health Center at a
common site in Harlingen, Texas, and adjacent to the center. 

(b)  Provides that the contract for the facility must specify that it be
designed and constructed to provide for all outpatient health care
services, including outpatient tuberculosis services, provided at the South
Texas Hospital on the effective date of this Act.  Provides that the
facility may be designed and constructed to allow for the provision of
additional outpatient health care services. 

(c)  Provides that if the facility is colocated with the Regional Academic
Health Center, the contract must specify that, to the maximum extent
possible, that facility and the Regional Academic Health Center must be
designed and constructed together to save construction costs and long-term
maintenance and operations costs by using common central utility plants,
cafeterias, and laundry, maintenance, and other support facilities.
Requires the board of regents of The University of Texas System (board) to
cooperate with TDH to coordinate the structure and design of the physical
facilities of the facility and the Regional Academic Health Center to
achieve a maximally efficient use of resources. 

SECTION 2.  OUTPATIENT HEALTH CARE SERVICES.  (a) Requires the provision of
all outpatient health care services provided by the South Texas Hospital on
the effective date of this Act to be transferred to the new facility upon
its completion. 

(b) Authorizes TDH to contract with any public or private health care
provider or entity for the management and operation of the facility and for
provision of outpatient health care services at the facility. 

SECTION 3.  INPATIENT HEALTH CARE AND RELATED LABORATORY SERVICES.  (a)
Requires TDH to contract with one or more public or private health care
providers or entities, including a political subdivision that is located in
the Rio Grande Valley region and is responsible for providing health care
for its residents, for the provision of inpatient health care services,
including inpatient tuberculosis services and related laboratory services
provided by the South Texas Hospital on the effective date of this Act out
of funds appropriated to TDH for that purpose. 

SECTION 4.  INTERIM RENOVATION OF PHYSICAL FACILITIES OF THE SOUTH TEXAS
HOSPITAL.  Requires TDH, out of funds appropriated for that purpose, to
contract for minimally necessary structural and design renovations to the
physical facilities of the South Texas Hospital required for compliance
with certain state and federal standards regarding accessibility for the
disabled and for the continued operation of the hospital to provide
services until construction of the new facility and the provision of those
services is complete. 

SECTION 5.  FUTURE OF THE SOUTH TEXAS HOSPITAL.  Requires the board to give
the Texas Department of Mental Health and Mental Retardation (MHMR) the
first option to lease the current physical facilities of the South Texas
Hospital on completion of a new physical facility for outpatient health
care services and after contracting providers or entities under SECTION 3
of this Act have begun providing inpatient health care and related
laboratory services.  Requires the board to study and prepare leasing and
other options for potential future uses of the facilities if MHMR does not
lease the facilities. 

SECTION 6.  CONTINUATION OF SUPPORT SERVICES.  (a)  Requires TDH and the
Texas Department of Mental Health and Mental Retardation (MHMR) to enter
into an interagency contract to provide for continuation of support
services for the facility operated by MHMR that is colocated with the South
Texas Hospital, if the new facility required by Section 1 of this Act is
colocated with the Regional Academic Health Center. 

(b)  Authorizes the contract to include a provision requiring TDH to
continue providing employees for support facilities at the site. 

SECTION 7.  DISPLACED EMPLOYEES OF SOUTH TEXAS HOSPITAL.  (a)  Requires
TDH to reassign a member of the employee class of TDH who is employed at
the South Texas Hospital and whose position is displaced as a result of the
contract entered into by TDH under this Act or the transfer of services
from the South Texas Hospital to an open position within TDH in reasonable
proximity to the hospital and for which the member is qualified.  Requires
TDH to provide job placement assistance to a member of the employee class
if reassignment within TDH is not possible. 

(b)  Provides that a contract awarded by TDH under this Act must include a
provision that  the contracting entity is required to offer an employee of
the South Texas Hospital whose position is displaced as a result of the
contract a similar employment position with the entity before offering the
position to any other person. 

SECTION 8.  TIME FRAME.  Requires TDH to enter into the contracts required
by this Act no later than September 1, 2000. 

SECTION 9.  AMENDMENTS.  (a) Amends Subchapter B, Chapter 814, Government
Code, by adding Section 814.1043, as follows: 

Sec. 814.1043.  TEMPORARY SERVICE RETIREMENT OPTION FOR MEMBERS EMPLOYED AT
SOUTH TEXAS HOSPITAL.  (a)  Makes this section applicable to members of the
employee class who are employed by TDH at the South Texas Hospital on or
after the effective date of this section and on or before September 1,
2000, and who separate from state service at that time. 

(b)  Makes an eliminated employee eligible to retire and receive a service
retirement annuity if the member's age and service credit, each increased
by three years, would meet age and service requirements for service
retirement under Section 814.104(a) (Eligibility of Member for Service
Retirement), Government Code, which states that a member who has service
credit in the retirement system is eligible to retire and receive a service
retirement annuity if the member is at least 60 years old and has 5 years
of service credit in the employee class, or if the sum of the member's age
and amount of service credit in the employee class, including months of age
and credit, equals the number 80.  Provides that the annuity of a person
retiring under this section is computed based on the person's accrued
service credit increased by three years. 

(c)  Provides that an eliminated employee becomes eligible to retire and
receive a service retirement annuity on the date on which the member would
have met age and service requirements for service retirement under Section
814.104(a), Government Code, had the member remained employed by the state
if, on the date of separation from state service, the member's age and
service credit, each increased by five years, would meet age and service
requirements for service retirement under that section.  Provides that the
annuity of a person retiring under this subsection is computed based on the
person's accrued service credit. 

(d)  Provides that if a member described by Subsection (c) is reemployed by
the state before retirement, the time between the member's separation from
state service and reemployment is authorized to be used only to compute
eligibility for service retirement and is prohibited from being used to
compute the amount of any service retirement annuity. 

(e)  Requires a member applying to retire under this section and TDH to
provide documentation required by the retirement system to establish
eligibility to retire under this section. 

(b)  Amends Section 13.003, Health and Safety Code, to provide that the
purpose of the South Texas Hospital is to provide outpatient, in addition
to inpatient, services, either directly or by contract with one or more
private health care providers or entities, to the residents of the Lower
Rio Grande Valley.  Adds outpatient health care services, including
diagnostic, treatment, disease management, and supportive care services to
those services the board may establish at the hospital. 

SECTION 10.Emergency clause.
  Effective date: upon passage.





 COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3504 differs from the original bill as follows:

SECTION 1.  Changes proposed Subsection (a) of the original bill to specify
that the physical facility must be colocated with "the initial site of" the
Regional Academic Health Center, rather than with the center, at a common
site in Harlingen, Texas, and adjacent to the center.  Provides that the
facility may be designed and constructed to allow for the provision of
additional outpatient health care services. 

SECTION 2.  Changes proposed Subsection (b) of the original to authorize
the Texas Department of Health (TDH) to contract with any public or private
health care provider or entity, rather than a political subdivision,  for
the management of the physical facility constructed under SECTION 1 of this
Act. 

SECTION 3.  Changes the title of this proposed section of the original to:
INPATIENT HEALTH CARE AND RELATED LABORATORY SERVICES.  Further modifies
the original bill to require TDH to contract with one or more, rather than
any, public or private health care providers or entities, including a
political subdivision that is located in the Rio Grande Valley region and
is responsible for providing health care services to its residents, for the
provision of certain services.  Makes a conforming change. 

SECTION 4.  Deletes reference made in the original to reaccreditation
during 1999 by the Joint Commission on Accreditation of Healthcare
Organizations. 

SECTION 5.  The substitute changes the original to delete the original text
regarding the procedure by which the South Texas Hospital shall close.
Instead, the substitute requires the board to give MHMR the first option to
lease the current physical facilities of the hospital on completion of
construction of a new physical facility for outpatient health care services
and after contracting providers or entities under SECTION 3 of this Act
have begun providing inpatient health care and related laboratory services.
Requires the board to study and prepare leasing and other options for
potential future uses of the facilities, if MHMR does not lease them. 

SECTION 6.  Makes no change.

SECTION 7.  Changes the title of this proposed section of the original to:
DISPLACED EMPLOYEES OF SOUTH TEXAS HOSPITAL.  (a)  The substitute further
differs from the original by requiring TDH to reassign a member of the
TDH's employee class who is displaced as a result of a transfer of services
from the South Texas Hospital, in addition to a contract entered into by
TDH under this Act, to an open position within the department in reasonable
proximity to the hospital and for which the member is qualified.  The
substitute adds the requirement that TDH provide job placement assistance
to a member who cannot be reassigned to another position in TDH. 

In Subsection (b), the substitute differs from the original by providing
that a contract awarded by TDH under this Act must include a provision that
the contracting entity is required to offer an employee of the South Texas
Hospital whose position is displaced as a result of the contract a similar
employment position with the contracting entity before offering the
position to any other person. Strikes language from the original bill
stipulating that the contracting entity must offer a hospital employee a
similar position to the maximum extent possible. 

SECTION 8.  Makes no change.

SECTION 9.  In Subsection (a), the substitute changes the title of this
proposed section of the original to:  TEMPORARY SERVICE RETIREMENT OPTION
FOR MEMBERS EMPLOYED AT SOUTH TEXAS HOSPITAL.  The substitute differs from
the original by making this section applicable to employees who are
employed by TDH at the South Texas Hospital on or after the effective date
of this section and on or before September 1, 2000, rather than those
employees whose positions with TDH at the hospital are eliminated as a
result of contracts with public or private health care providers or
entities or as a result of the closing of the hospital. Makes
nonsubstantive changes. 
 
The substitute further modifies SECTION 9 by adding Subsection (b), which
amends Section 13.003, (Services at South Texas Hospital) Health and Safety
Code, to add outpatient services, in addition to inpatient services, which
are either directly or by contract with one or more public or private
health care providers or entities, to those services provided by the South
Texas Hospital.  Includes outpatient health care services, including
diagnostic, treatment, disease management, and supportive care services to
those services provided by the hospital.  Deletes proposed Section
814.1043(f), which makes this section applicable only to positions
eliminated on or after the effective date of this section as a result of a
contract with a public or private health care provider or entity or the
closing of the South Texas Hospital. 

The substitute deletes proposed SECTION 10 of the original, which required
TDH to enter into the contracts required by this Act no later than
September 1, 2000. 

SECTION 10 (emergency clause) is redesignated from SECTION 11 of the
original bill.