SB 0409 - Fiscal Note

Fiscal Note - SB 0409 - Allows health practitioners to hold liens on a patient's negligence claims

COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. NO.: 1647-01

BILL NO.: SB 409

SUBJECT: Liens, Health Care Professionals.

TYPE: Original

DATE: February 9, 1999

---

FISCAL SUMMARY

ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
University of Missouri Hospitals and Clinics	(Unknown)	(Unknown)	(Unknown)
Total Estimated Net Effect on All State Funds	(Unknown)	(Unknown)	(Unknown)

ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
None
Total Estimated Net Effect on All Federal Funds	$0	$0	$0

ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED	FY 2000	FY 2001	FY 2002
Local Government	(Unknown) to Unknown	(Unknown) to Unknown	(Unknown) to Unknown

Numbers within parentheses: ( ) indicate costs or losses

This fiscal note contains 4 pages.

FISCAL ANALYSIS

ASSUMPTION

In response to identical legislation, officials from the Department of Transportation, Department of Health, Department of Mental Health, Department of Economic Development, Department of Social Services, Department of Conservation, Missouri Consolidated Health Care Plan, Department of Public Safety, and the Department of Insurance assumed the proposed legislation would have no fiscal impact on their agencies.

In response to identical legislation, officials from the Office of the State Court Administrator (CTS) assumed the proposal may cause an increase in the workload of the courts depending on the number of cases filed. However, CTS does not anticipate a significant increase.

In response to identical legislation, officials from the Office of Administration assumed Risk Management handles personal injury claims paid under the State Legal Expense Fund. The proposal would change the processing of personal injury claims. All medical care providers who render treatment may file a lien. This increases the administrative burden of monitoring and honoring the liens. Additional staff will be required to meet the additional tasks of responding to the liens.

Oversight assumes that any impact would be minimal and could be absorbed with existing resources.

In response to identical legislation, officials from the University of Missouri (UM) assumed the proposed legislation purports to change what is commonly referred to as the hospital lien law. However, it could have a substantial impact upon UM Health Sciences Center due to the amendments to Section 430.230. The amendment would require that before being able to assert a hospital lien, the hospital would have to be licensed in the State of Missouri. UM Health Sciences Center is not required under state law to obtain a license. In fact, it has never been licensed by the Department of Health during its existence. Therefore, if the new definition in amended Section 430.230 is interpreted literally, it would preclude the University from filing a hospital lien for its services rendered at the UM Hospital and Clinics which would have a substantial fiscal impact on the medical center.

Oversight assumes there could be a reduction in revenue to the University of Missouri Health Sciences Center in an unknown amount. Oversight also assumes that some county hospitals could experience reduction in revenue in particular cases and increased revenue in other cases.

FISCAL IMPACT - State Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
University of Missouri Health Sciences Center
Loss of Revenue	(Unknown)	(Unknown)	(Unknown)
FISCAL IMPACT - Local Government	FY 2000	FY 2001	FY 2002
	(10 Mo.)
County Hospitals
Loss/Gain of Revenue	(Unknown)	(Unknown)	(Unknown)to to to
	Unknown	Unknown	Unknown
FISCAL IMPACT - Small Business
The proposal could provide health practitioners with some additional leverage to collect money owed for services rendered.

DESCRIPTION

This proposal allows health practitioners and all private health care institutions to have liens on any claims of a person who received health care services from the institution or provider. Claims include benefits from insurance carriers and damages from someone who injured the person receiving health care services.

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

Department of Economic Development

Department of Social Services

Department of Mental Health

Department of Conservation

Office of Administration

Department of Transportation

Missouri Consolidated Health Care Plan

Department of Public Safety

SOURCES OF INFORMATION (continued)

Department of Insurance

Office of the State Courts Administrator

University of Missouri

Jeanne Jarrett, CPA

Director

February 9, 1999