TITLE 25.HEALTH SERVICES

Part 1. TEXAS DEPARTMENT OF HEALTH

Chapter 43. MEDICAID RECIPIENT UTILIZATION REVIEW AND CONTROL

On behalf of the State Medicaid Director, the Texas Department of Health (department) adopts the repeal of §§43.22 - 43.25 and adopts new §§43.21 - 43.24, concerning Medicaid recipient review and control, without changes to the proposed text as published in the November 5, 1999, issue of the Texas Register (24 TexReg 9745) , and therefore, the sections will not be republished.

The department monitors the use of health care services by Medicaid recipients. If the recipient's usage pattern appears to be unnecessary, excessive, or inappropriate, the recipient is placed in the limited program. The repeal of §§43.22 - 43.25 and the adoption of new §§43.21 - 43.24 will allow the department to review a broader base of recipients who may be misusing, wasting, or fraudulently acquiring Medicaid services.

Additionally, §§43.21 - 43.24 have been reviewed in accordance with Government Code §2001.039, which requires each state agency to review and consider for readopting each rule adopted by that agency pursuant to the Government Code, Chapter 2001 (Administrative Procedure Act). The department has determined that the reasons for adopting the sections continue to exist in that rules are needed; however, the rules need revision as described in this preamble. The department published a Notice of Intention to Review §§43.22 - 43.25 in the May 7, 1999, issue of the Texas Register (24 TexReg 3546), and no comments were received as a result of this publication.

No comments concerning the proposed repeal or proposed new rules were received during the 30-day comment period.

25 TAC §§43.21 - 43.24

The new sections are adopted under the Human Resource Code §32.021, and Government Code §531.021, which provide the Health and Human Services Commission with the authority to adopt rules to administer the state's medical assistance program and is submitted by the Texas Department of Health under its agreement with the Health and Human Services Commission to operate the purchased health services program and as authorized under Chapter 15, §1.07, Acts of the 72nd Legislature, First Call Session (1991). Government Code, §2001.039 is implemented by this adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 13, 2000.

TRD-200001909

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: April 2, 2000

Proposal publication date: November 5, 1999

For further information, please call: (512) 458-7236


Chapter 43. UTILIZATION CONTROL

25 TAC §§43.22 - 43.25

The repeals are adopted under the Human Resource Code §32.021, and Government Code §531.021, which provide the Health and Human Services Commission with the authority to adopt rules to administer the state's medical assistance program and is submitted by the Texas Department of Health under its agreement with the Health and Human Services Commission to operate the purchased health services program and as authorized under Chapter 15, §1.07, Acts of the 72nd Legislature, First Call Session (1991). Government Code, §2001.039 is implemented by this adoption.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 13, 2000.

TRD-200001908

Susan K. Steeg

General Counsel

Texas Department of Health

Effective date: April 2, 2000

Proposal publication date: November 5, 1999

For further information, please call: (512) 458-7236


Part 5. CENTER FOR RURAL HEALTH INITIATIVES

Chapter 500. EXECUTIVE COMMITTEE FOR THE CENTER FOR RURAL HEALTH INITIATIVES

Subchapter G. PERMANENT FUND FOR RURAL HEALTH FACILITY CAPITAL IMPROVEMENT

25 TAC §§500.401 - 500.411

The Center for Rural Health Initiatives (center) adopts new §§500.401 - 500.411 relating to grants, loans and loan guarantees for capital improvements in rural health facilities, specifically rural hospitals. These rules are adopted without changes to the proposed text as published in the Texas Register on January 7, 2000, on page (25 TexReg 51).

These rules are adopted to implement a portion of Acts 1999, 76th Legislature, Chapter 1391 (House Bill (HB) 1676), which creates the Permanent Fund for Rural Health Facility Capital Improvement.

HB 1676 enacts the Government Code, 403.1065, which creates the Permanent Fund for Rural Health Facility Capital Improvement. HB 1676 allows the earnings of this fund to be appropriated to the center for providing grants, loans and loan guarantees to a public or nonprofit hospital located in a rural county. HB 1676 also enacts the Health and Safety Code, §§106.201 - 106.204 relating to the center's use of the earnings. These sections address grants, loans, and loan guarantees; however, the center proposes that grants and no interest loans be awarded, at least initially, because of the projected higher administrative cost of providing loans with interest rates or loan guarantees.

The sections accomplish the following: define terms in the legislation; provide the center's philosophy in making the grants, loans and loan guarantees; discuss the sources and allocation of funds; establish who is eligible to receive the grants, loans and loan guarantees; provide the requirements for receiving the grants, loans and loan guarantees; establish the procedures for grant announcements; establish the procedures for grant, loan and loan guarantee applications; describe the competitive review process; and outline the first biennium, less than the total appropriation of $2.5 million for the Permanent Fund for Rural Health Facility Capital Improvement may be spend in one fiscal year of the biennium but the entire appropriation for the fund for the biennium will be spent by the end of the biennium.

It is estimated that there will be a positive impact on local governments in an amount equal to the amount of grants and loans local governments receive. Public or nonprofit hospitals located in a rural county are eligible to receive grants, loans and loan guarantees under the Permanent Fund for Rural Health Facility Capital Improvement, therefore some portion of the $2.5 million appropriated may be granted to hospital districts or counties or municipalities which own public hospitals.

No comments were received on the proposal during the comment period.

The new sections are adopted under the Health and Safety Code, §106.202 which provides the center with the authority to adopt rules concerning the Permanent Fund for Rural Health Facility Capital Improvement; Health and Safety Code, §106.021(j) which provides the center with the authority to adopt rules to implement Chapter 106.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 15, 2000.

TRD-200001964

Robt. J. "Sam" Tessen

Executive Director

Center for Rural Health Initiatives

Effective date: April 4, 2000

Proposal publication date: January 7, 2000

For further information, please call: (512) 479-8891