Texas 2017 - 85th Regular

Texas House Bill HB2939 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R12161 SMT-D
2	2	By: Dutton H.B. No. 2939
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to contracts with private entities to operate state
8	8	hospitals for persons with mental illness.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 533, Health and Safety
11	11	Code, is amended by adding Section 533.050 to read as follows:
12	12	Sec. 533.050. PRIVATIZATION OF STATE MENTAL HOSPITAL;
13	13	CONSTRUCTION AND OPERATION OF REPLACEMENT FACILITY. (a) The
14	14	department shall contract with a private service provider to
15	15	operate a state mental hospital if:
16	16	(1) the executive commissioner determines that the
17	17	private service provider will operate the hospital at a cost that is
18	18	at least five percent less than the cost to the department to
19	19	operate the hospital;
20	20	(2) the executive commissioner approves the contract;
21	21	(3) the hospital, when operated under the contract,
22	22	treats a population with essentially the same characteristics and
23	23	acuity levels as the population treated at the hospital when
24	24	operated by the department; and
25	25	(4) the private service provider is required under the
26	26	contract to operate the hospital at a quality level at least equal
27	27	to the quality level achieved by the department when the department
28	28	operated the hospital, as measured by the hospital's most recent
29	29	applicable accreditation determination from The Joint Commission
30	30	on health care organization accreditation.
31	31	(b) The department shall report to the executive
32	32	commissioner regarding whether the department has received a
33	33	proposal by a private service provider to operate a state mental
34	34	hospital. The report must include an evaluation of the private
35	35	service provider's qualifications, experience, and financial
36	36	strength, a determination of whether the provider can operate the
37	37	hospital under the same standard of care as the department, and an
38	38	analysis of the projected savings under a proposed contract with
39	39	the provider. The savings analysis must include all department
40	40	costs to operate the hospital, including costs, such as employee
41	41	benefits, that are not appropriated to the department.
42	42	(c) A contract entered into under Subsection (a) must:
43	43	(1) provide that the department retains the right to
44	44	assume management of the hospital if contract terms are not met or
45	45	if the five percent cost savings requirement is not met; and
46	46	(2) establish specific goals for the provider to meet:
47	47	(A) in significantly reducing the use of
48	48	restraints and the seclusion of patients;
49	49	(B) in significantly reducing patient waiting
50	50	lists;
51	51	(C) in significantly reducing total length of
52	52	stay for patients, measured annually;
53	53	(D) in increasing access to mental health
54	54	inpatient services; and
55	55	(E) in reducing recidivism.
56	56	(d) The department shall monitor care of patients at a state
57	57	hospital operated by a contract authorized by this section. The
58	58	department shall develop and maintain information on activities
59	59	carried out under the contract without violating privacy or
60	60	confidentiality rules. The information developed under this
61	61	subsection must include:
62	62	(1) the number of incidents in which patients were
63	63	restrained or secluded;
64	64	(2) the number of incidents of serious assaults in the
65	65	hospital setting;
66	66	(3) the number of occurrences in the hospital setting
67	67	involving contacts with law enforcement personnel;
68	68	(4) individual and average lengths of stay, including
69	69	computation of lengths of stay according to the number of days a
70	70	patient is in the facility during each calendar year, regardless of
71	71	discharge and readmission; and
72	72	(5) client outcomes.
73	73	(e) The department may not enter into a contract under this
74	74	section with a private service provider unless the provider has a
75	75	documented and verified record of success in:
76	76	(1) providing mental health services over a five-year
77	77	period; and
78	78	(2) managing an inpatient mental health facility with
79	79	a population of at least 250 patients.
80	80	(f) If the department contracts with a private service
81	81	provider to operate a state mental hospital under Subsection (a) or
82	82	with a person to finance, design, construct, and operate a state
83	83	mental hospital under Subsection (h), the department, the
84	84	Governor's Office of Budget and Planning, and the Legislative
85	85	Budget Board shall identify sources of funding that must be
86	86	transferred to the department to fund the contract.
87	87	(g) The department may renew a contract under this section.
88	88	The conditions provided by this section apply to the renewal of the
89	89	contract.
90	90	(h) The department shall enter into an agreement with a
91	91	private entity to finance, design, construct, and operate a new
92	92	facility to replace one or more state hospitals. The term of the
93	93	agreement may not exceed 25 years. The agreement must provide for
94	94	the department to acquire the facility under a lease-purchase
95	95	agreement with a term not to exceed 25 years and authorize the
96	96	private entity to issue certificates of participation or other
97	97	appropriate securities to finance the construction of the facility.
98	98	The portions of the agreement that govern the provision of services
99	99	must meet the requirements for a contract entered into under
100	100	Subsection (a). Operational savings used to pay debt service
101	101	payments for financing a new facility shall be counted in
102	102	calculating whether the proposal meets the five percent savings
103	103	required by Subsection (a)(1). The department shall report to the
104	104	executive commissioner regarding whether the department has
105	105	received a proposal from a person to finance, design, construct,
106	106	and operate a facility under this subsection. The report must
107	107	include an evaluation of the proposal, including an evaluation of
108	108	the person's qualifications, experience, and financial strength, a
109	109	determination of whether the person can operate the new facility
110	110	under the same standard of care as the department, and an analysis
111	111	of the projected savings under the proposal.
112	112	(i) The department and each private entity that contracts
113	113	with the department under this section shall provide to the
114	114	legislature a report on the progress of activities under the
115	115	contract and performance of services under the contract. The
116	116	report must be provided to the legislature not later than November 1
117	117	of each even-numbered year.
118	118	SECTION 2. Not later than October 13, 2017, the Department
119	119	of State Health Services shall issue a request for proposals for a
120	120	private service provider to contract with the department to
121	121	finance, design, construct, and operate a state hospital as
122	122	authorized by Section 533.050(h), Health and Safety Code, as added
123	123	by this Act.
124	124	SECTION 3. This Act takes effect September 1, 2017.