HBA-MSH H.B. 3583 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3583
By: Coleman
Public Health
3/28/2001
Introduced



BACKGROUND AND PURPOSE 

Under current rules, the Texas Department of Mental Health and Mental
Retardation (MHMR) is authorized to impose a vendor hold or require the
implementation of a directed plan of correction for a violation of MHMR
rules.  However, if MHMR does not cancel the contract with the vendor, it
can decrease the effectiveness of the penalty.  House Bill 3583 requires
MHMR to terminate the contract of a vendor who is subject to a vendor hold
three times within an 18-month period. 

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. 

ANALYSIS

The bill amends the Health and Safety Code to require the Texas Department
of Mental Health and Mental Retardation (MHMR) to include in a contract
with a provider participating in the medical assistance program serving
persons with mental retardation who receive care in intermediate care
facilities (ICF-MR program) a provision stating that the contract
terminates if MHMR imposes a vendor hold on payments made to the facility
under the medical assistance program three times during an 18-month period.
The bill requires MHMR to ensure that each provision of a contract with an
ICF-MR program provider is consistent with MHMR and Texas Department of
Human Services (DHS)  rules that govern the ICF-MR program.  If DHS
recommends that a vendor hold be imposed on payments made to an ICF-MR
program provider or that the contract with the ICF-MR program provider be
terminated, the bill requires MHMR to immediately impose the vendor hold or
terminate the contract, as appropriate, without conducting a further
investigation or providing the ICF-MR program provider with an opportunity
to take corrective action.  The bill repeals rules adopted by the Texas
Board of Mental Health and Mental Retardation before September 1, 2001
relating to imposition of a vendor hold on payments made to an ICF-MR
program provider or the cancellation of a contract with an ICF-MR program
provider after the imposition of vendor holds. 

EFFECTIVE DATE

September 1, 2001.