Texas House Bill HB4073

Texas 2017 - 85th Regular

Caption

Relating to outsourcing a service performed by the Health and Human Services Commission or a health and human services agency to a private commercial contractor.

Impact

The implications of HB 4073 are noteworthy as it mandates a thorough comparative cost analysis, which means that the commission or agency must evaluate not only the costs associated with outsourcing but also assess the efficiency and effectiveness of current services conducted by state employees. This could lead to significant shifts in how health services are administered in Texas, potentially favoring private contractors who could provide services at lower costs, albeit with the consequent risk of compromising service quality or state employee job security.

Summary

House Bill 4073 proposes significant changes to the outsourcing processes employed by the Health and Human Services Commission (HHSC) and related health agencies in Texas. The bill aims to streamline the outsourcing of services currently provided by state agencies by requiring detailed cost analyses prior to any contract initiation with private contractors. Specifically, the legislation focuses on cases where contracts could result in the loss of 100 or more state employee positions or have a total value of $10 million or more. This threshold aims to ensure that major changes are subjected to rigorous scrutiny and evaluation.

Contention

Notably, the bill has sparked debates regarding the potential impacts on state employment, service quality, and the financial implications of contracting out government services. Critics argue that the focus on outsourcing could jeopardize the jobs of state employees and lead to a decline in the quality of services provided, especially in essential areas such as public health and safety. Advocates, however, suggest that the competitive nature of private contracting might result in better resource allocation and improved service delivery, emphasizing the need for cost efficiency in government spending.