84R4796 KEL-D By: Howard H.B. No. 1489 A BILL TO BE ENTITLED AN ACT relating to measures to enhance graduate medical education in this state. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Chapter 58A, Education Code, is amended by adding Subchapters D, E, and F to read as follows: SUBCHAPTER D. CRITICAL SHORTAGE PHYSICIAN GRANT PROGRAM Sec. 58A.101. DEFINITIONS. In this subchapter: (1) "Center" means the comprehensive health professions resource center established under Chapter 105, Health and Safety Code. (2) "Graduate medical residency training program" means a residency or other postgraduate medical training program: (A) participation in which may be counted toward certification in a medical specialty or subspecialty; and (B) that: (i) is accredited by the Accreditation Council for Graduate Medical Education or the American Osteopathic Association; or (ii) demonstrates eligibility to apply for and receive an accreditation described by Subparagraph (i). (3) "Program" means the critical shortage physician grant program established under this subchapter. (4) "Teaching hospital" means a teaching hospital affiliated with a medical school that is described as a medical and dental unit under Section 61.003. Sec. 58A.102. ESTABLISHMENT OF PROGRAM. The board shall establish the critical shortage physician grant program to provide grants to teaching hospitals for graduate medical residency training programs to increase the number of physicians in the medical specialties and subspecialties that are determined by the board to be at a critical shortage level in this state. Sec. 58A.103. RULES. (a) The board shall adopt rules to administer the program, including rules regarding: (1) a grant application process; (2) reporting requirements for grant recipients; and (3) requirements and benchmarks for grant recipients to satisfy regarding the granting of additional program funding under Section 58A.106. (b) The rules adopted under Subsection (a) must require grant recipients to submit reports at least quarterly, based on outcome measures established by the board in consultation with the Legislative Budget Board. Sec. 58A.104. ELIGIBILITY. To be eligible to receive a grant under this subchapter, a teaching hospital must: (1) provide a number of graduate medical residency positions in excess of both the cap on the number of positions funded by direct graduate medical education payments made under Section 1886(h), Social Security Act (42 U.S.C. Section 1395ww(h)), and the cap on the number of positions funded by indirect medical education payments made under Section 1886(d)(5)(B), Social Security Act (42 U.S.C. Section 1395ww(d)(5)(B)); and (2) offer or seek to offer one or more graduate medical residency training programs in a specialty described by Section 58.008(a) or in any other medical specialty or subspecialty determined by the board to be at a critical shortage level in this state. Sec. 58A.105. USE OF FUNDS. In each state fiscal year, the board shall award grants for establishing new accredited graduate medical residency training programs or increasing the number of residency positions in existing accredited graduate medical residency training programs in specialties described by Section 58.008(a) or in any other medical specialties or subspecialties determined by the board to be at a critical shortage level in this state. Sec. 58A.106. ADDITIONAL USE: START-UP COSTS. (a) If in a state fiscal year excess program funds remain after funds are granted under Section 58A.105, the board may grant additional program funding to teaching hospitals to pay any start-up costs associated with establishing and seeking accreditation for a new graduate medical residency training program in a specialty described by Section 58.008(a) or in any other medical specialty or subspecialty determined by the board to be at a critical shortage level in this state, provided that no other federal or state funding is available for that program. (b) To be eligible for funding under this section, start-up costs must be directly related to the establishment or accreditation of the new program. (c) The board may grant program funding under this section to pay a percentage of the total amount of applicable start-up costs for the teaching hospital, not to exceed 20 percent. Sec. 58A.107. REDUCTION IN FUNDING. The board shall limit or withhold funding from grant recipients that do not comply with reporting requirements or that use grant funds for a purpose not authorized by this subchapter. The board shall seek reimbursement with respect to any grant funds that are not used for purposes authorized by this subchapter. Sec. 58A.108. CRITERIA FOR DETERMINING CRITICAL SHORTAGE LEVELS. (a) For purposes of this subchapter, the board shall determine critical shortage levels for medical specialties and subspecialties in this state according to criteria used by the United States Department of Health and Human Services Health Resources and Services Administration to designate health professional shortage areas. (b) In its methodology for determining critical shortage levels under this section, the board shall include the results of the research conducted by the center under Section 105.009(a)(1), Health and Safety Code, and similar research performed by other appropriate entities. SUBCHAPTER E. TEXAS TEACHING HEALTH CENTER GRADUATE MEDICAL EDUCATION GRANT PROGRAM Sec. 58A.121. DEFINITIONS. In this subchapter: (1) "Graduate medical residency training program" means a residency or other postgraduate medical training program: (A) participation in which may be counted toward certification in a medical specialty or subspecialty; and (B) that: (i) is accredited by the Accreditation Council for Graduate Medical Education or the American Osteopathic Association; or (ii) demonstrates eligibility to apply for and receive an accreditation described by Subparagraph (i). (2) "Primary care residency program" means a graduate medical residency training program in a specialty described by Section 58.008(a). (3) "Program" means the Texas teaching health center graduate medical education grant program established under this subchapter. (4) "Teaching health center" means a community-based, ambulatory patient care center that operates a primary care residency program. The term includes: (A) a federally qualified health center, as defined by Section 1905(l)(2)(B), Social Security Act (42 U.S.C. Section 1396d(l)(2)(B)); (B) a community mental health center, as defined by Section 1861(ff)(3)(B), Social Security Act (42 U.S.C. Section 1395x(ff)(3)(B)); (C) a rural health clinic, as defined by Section 1861(aa)(2), Social Security Act (42 U.S.C. Section 1395x(aa)(2)); (D) a health center operated by the Indian Health Service, an Indian tribe or tribal organization, or an urban Indian organization, as defined by Section 4, Indian Health Care Improvement Act (25 U.S.C. Section 1603); and (E) an entity receiving funds under Title X, Public Health Service Act (42 U.S.C. Section 300 et seq.). Sec. 58A.122. ESTABLISHMENT OF PROGRAM. The board shall establish the Texas teaching health center graduate medical education grant program to award grants to teaching health centers for the purpose of establishing new primary care residency programs or increasing the number of residency positions in existing primary care residency programs. Sec. 58A.123. RULES. (a) The board shall adopt rules to administer the program, including rules regarding: (1) a grant application process; (2) reporting requirements for grant recipients under Section 58A.128; and (3) the amount of the payments for direct expenses and indirect expenses, as defined by and calculated in the same manner as those expenses are calculated under the federal rules described by Subsection (b). (b) The rules adopted under this subchapter must be based as nearly as possible on the rules adopted under the federal teaching health centers development grant program established under Section 5508, Patient Protection and Affordable Care Act of 2010 (Pub. L. No. 111-148). (c) The rules adopted in relation to the reporting requirements under Section 58A.128 must also: (1) authorize the board to conduct audits of grant recipients to the extent necessary to ensure the accuracy and completeness of their annual reports; and (2) specify a mandatory amount of reduction in grant funds under Section 58A.127 for a failure to submit an accurate or complete report. Sec. 58A.124. AMOUNT AND DURATION OF GRANT. Subject to Section 58A.127, the board may award grants under this subchapter for a term of not more than three years, and the maximum award to a recipient may not exceed $500,000 during each state fiscal year. Sec. 58A.125. RELATIONSHIP OF GRANTS TO OTHER FEDERAL PAYMENTS FOR GRADUATE MEDICAL EDUCATION. A grant awarded by the board under this subchapter is in addition to any payments for: (1) direct graduate medical education costs under Section 1886(h), Social Security Act (42 U.S.C. Section 1395ww(h)); (2) indirect medical education costs under Section 1886(d)(5)(B), Social Security Act (42 U.S.C. Section 1395ww(d)(5)(B)); and (3) direct costs of medical education under Section 1886(k), Social Security Act (42 U.S.C. Section 1395ww(k)). Sec. 58A.126. USE OF FUNDS. A grant awarded under this subchapter may be used only to cover the costs of establishing a new primary care residency program at a teaching health center or the costs of increasing the number of residency positions in an existing primary care residency program, including costs associated with: (1) curriculum development; (2) recruitment, training, and retention of residents and faculty; (3) obtaining accreditation by the Accreditation Council for Graduate Medical Education or the American Osteopathic Association; and (4) faculty salaries during the development phase. Sec. 58A.127. REDUCTION IN FUNDING. The board shall limit or withhold funding from grant recipients that do not comply with reporting requirements or that use grant funds for a purpose not authorized by this subchapter. The board shall seek reimbursement with respect to any grant funds that are not used for purposes authorized by this subchapter. Sec. 58A.128. REPORTING. (a) A grant recipient shall submit an annual report that fully accounts for the use of a grant awarded under this subchapter. (b) The annual report must be made in the form and manner specified by the board and must include the following information for the most recent residency academic year completed immediately before the applicable state fiscal year: (1) the types of primary care residency programs that the grant recipient provided for residents; (2) the number of approved training positions in those programs for part-time or full-time residents; (3) the number of part-time or full-time residents who: (A) completed their residency training in those programs at the end of the residency academic year; and (B) care for vulnerable populations living in underserved areas; and (4) any other information considered appropriate by the board. SUBCHAPTER F. GRADUATE MEDICAL EDUCATION PARTNERSHIP GRANT PROGRAM Sec. 58A.151. DEFINITIONS. In this subchapter: (1) "Graduate medical education partnership" means a partnership entered into by a teaching health center and an accredited graduate medical residency training program offered by a hospital or medical school. (2) "Graduate medical residency training program" means a residency or other postgraduate medical training program: (A) participation in which may be counted toward certification in a medical specialty or subspecialty; and (B) that: (i) is accredited by the Accreditation Council for Graduate Medical Education or the American Osteopathic Association; or (ii) demonstrates eligibility to apply for and receive an accreditation described by Subparagraph (i). (3) "Primary care residency program" means a graduate medical residency training program in a specialty described by Section 58.008(a). (4) "Program" means the graduate medical education partnership grant program established under this subchapter. (5) "Teaching health center" means a community-based, ambulatory patient care center that operates a primary care residency program. The term includes: (A) a federally qualified health center, as defined by Section 1905(l)(2)(B), Social Security Act (42 U.S.C. Section 1396d(l)(2)(B)); (B) a community mental health center, as defined by Section 1861(ff)(3)(B), Social Security Act (42 U.S.C. Section 1395x(ff)(3)(B)); (C) a rural health clinic, as defined by Section 1861(aa)(2), Social Security Act (42 U.S.C. Section 1395x(aa)(2)); (D) a health center operated by the Indian Health Service, an Indian tribe or tribal organization, or an urban Indian organization, as defined by Section 4, Indian Health Care Improvement Act (25 U.S.C. Section 1603); and (E) an entity receiving funds under Title X, Public Health Service Act (42 U.S.C. Section 300 et seq.). Sec. 58A.152. ESTABLISHMENT OF PROGRAM. The board shall establish the graduate medical education partnership grant program to allow a teaching health center that is establishing and seeking accreditation for a new primary care residency program to partner with an accredited graduate medical residency training program offered by a hospital or medical school. Sec. 58A.153. RULES. The board shall adopt rules to administer the program, including rules regarding a grant application process and reporting requirements for grant recipients. Sec. 58A.154. USE OF FUNDS. The board shall award grants to each participant in a graduate medical education partnership to: (1) facilitate a mentoring relationship between partners that will provide information and guidance for the participating teaching health center during the accreditation process; and (2) assist the partners in building a collaborative working relationship for the future. Sec. 58A.155. REDUCTION IN FUNDING. The board shall limit or withhold funding from grant recipients that do not comply with reporting requirements or that use grant funds for a purpose not authorized by this subchapter. The board shall seek reimbursement for any grant funds that are not used for purposes authorized by this subchapter. SECTION 2. Chapter 105, Health and Safety Code, is amended by adding Section 105.009 to read as follows: Sec. 105.009. RESEARCH REGARDING GRADUATE MEDICAL EDUCATION SYSTEM. (a) The comprehensive health professions resource center shall conduct research: (1) to identify: (A) the ratio of primary care to non-primary care physicians that is necessary and appropriate to meet the current and future health care needs of this state; and (B) all medical specialties and subspecialties that are at critical shortage levels in this state, together with the geographic location of the physicians in those specialties and subspecialties; and (2) regarding the overall supply of physicians in this state and any other issues that are relevant to the status of the state's graduate medical education system and the ability of that system to meet the current and future health care needs of this state. (b) Not later than August 31 of each even-numbered year, the council shall report the results of the center's research to the Legislative Budget Board, the Texas Higher Education Coordinating Board, the office of the governor, and the standing committees of each house of the legislature with primary jurisdiction over state finance or appropriations. SECTION 3. (a) Not later than December 31, 2015, the Texas Higher Education Coordinating Board shall adopt rules for the critical shortage physician grant program, the Texas teaching health center graduate medical education grant program, and the graduate medical education partnership grant program established under Subchapters D, E, and F, Chapter 58A, Education Code, respectively, as added by this Act. (b) The board shall award grants under the programs described by Subsection (a) of this section beginning with the state fiscal year ending August 31, 2016. SECTION 4. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.