COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION


FISCAL NOTE

 

L.R. No.:         4329-03

Bill No.:          HCS for HB 1790

Subject:           Health Care; Health Care Professionals; Health Department; Hospitals; Physicians

Type:              Original

Date:               February 29, 2008





 

Bill Summary:            This legislation modifies the designation of hospitals as trauma, heart attack, or stroke centers to implement a time critical diagnosis system.



FISCAL SUMMARY


ESTIMATED NET EFFECT ON GENERAL REVENUE FUND

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on

General Revenue

Fund

$0

$0

$0

  

ESTIMATED NET EFFECT ON OTHER STATE FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on Other

State Funds

$0

$0

$0


Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.




ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on All

Federal Funds

$0

$0

$0



ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on

FTE

0

0

0


Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).


Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).


ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

Local Government

$0

$0

$0








FISCAL ANALYSIS


ASSUMPTION


Officials from the Department of Health and Senior Services (DHSS) state the following:


Section 190.241:

This section of the proposal requires the Department to designate a hospital as a STEMI or stroke center if they meet the necessary criteria and complete the application and review process. An on-site review would be completed every five (5) years. The legislation would also allow the DHSS to establish an appropriate fee for the review.


It is difficult to estimate the number of hospitals that will participate as STEMI and/or stroke centers. There are currently 29 hospitals designated as trauma centers. DHSS believes that most of the 29 trauma centers would also participate as a stroke center, but that only about two-thirds (19) would participate as STEMI centers. DHSS further believes there will be other hospitals that are not trauma centers that would participate in one or both programs.


Section 190.200.2:

This section of the proposal requires the Department to compile and assess clinical research and guidelines on treatment standards, to promulgate rules on transportation of patients to the proper center within time limits suggested by the clinical research and to promote the development of regional or community-based plans for the transportation of STEMI or stroke patients and establishment of procedures for department approval.


DHSS believes that existing resources, including grant funding from the Centers for Disease Control and Prevention, can be utilized to implement this program. No additional funding would be required.


Officials from the Department of Social Services states the Institutional Reimbursement Unit (IRU) of the MO HealthNet Division (MHD) determines a per diem reimbursement rate for each hospital based on the cost reports submitted by the hospital to the IRU. Payments are made to all hospitals based on their per diem rate for all inpatient care they provide regardless of the patient's injury or disease.


The proposal creates additional designations for heart attack or stroke centers. Although facilities' payments may be identified differently due to these designations, their overall payments will not increase or decrease due to these designations. Some incidental costs may be incurred by the facilities due to licensing fees and paperwork associated with these designations, but MHD assumes these costs would be insignificant.


ASSUMPTION (continued)


Officials from the Taney County Ambulance District assumes the proposal would have an estimated fiscal impact of $7,000 in additional mileage cost.


Oversight assumes, because the potential for increased mileage is speculative, that the Taney County Ambulance District will not incur significant costs related to this proposal.



FISCAL IMPACT - State Government

FY 2009

(10 Mo.)

FY 2010

FY 2011

 

 

 

 

 

$0

$0

$0

 

 

 

 

 

 

 

 



FISCAL IMPACT - Local Government

FY 2009

(10 Mo.)

FY 2010

FY 2011

 

 

 

 

 

$0

$0

$0



FISCAL IMPACT - Small Business


It could impact small ambulance services by mandating that a patient be transferred to a hospital that is not the closest facility. The cost for this should be reimbursed by private insurance companies, but there could be an issue with coverage from Medicare.



FISCAL DESCRIPTION


The proposed legislation appears to have no fiscal impact.


This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.







SOURCES OF INFORMATION


Department of Health and Senior Services

Department of Social Services

Taney County Ambulance District






                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                February 29, 2008