COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1938-01

Bill No.: SCR 11

Subject: General Assembly: Health Care

Type: Original

Date: March 19, 2003




FISCAL SUMMARY



ESTIMATED NET EFFECT ON GENERAL REVENUE FUND
FUND AFFECTED FY 2004 FY 2005 FY 2006
General ($226,158) ($245,125) ($252,563)
Total Estimated

Net Effect on

General Revenue

Fund

($226,158) ($245,125) ($252,563)



ESTIMATED NET EFFECT ON OTHER STATE FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on Other

State Funds

$0 $0 $0



Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.











ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2004 FY 2005 FY 2006
Local Government $0 $0 $0




FISCAL ANALYSIS



ASSUMPTION



Officials from the University of Missouri (UM) stated that the UM does not own any hospitals in Kansas City. They said should the UMKC choose to participate in the study, there would be a unknown cost to the School of Medicine.



Officials from the Department of Insurance (INS) state the INS may experience additional expenses in the areas of research, statistical analysis, etc. However, since the Department of Health and Senior Services would be responsible for monitoring the success and reporting the program status, the INS assumes they will submit costs for the pilot project. Fiscal impact to the INS is anticipated to be minimal and will be absorbed by existing staff.



Officials from the Department of Health and Senior Services (DOH) stated the DOH in conjunction with the University of Missouri-Kansas City - Hospitals and Clinics (UMKC-H&C) would enlist physician/surgeon participation across a range of specialties to identify and select a test group of surgical procedures based on: (1) Leading elective surgeries at UMKC - H&C across a range of risk levels, and (2) Availability of educational material based on accepted medical literature, including preparation and care guidelines and complications frequencies. They assume DOH and UMKC would research, develop and produce educational materials for the selected procedures included in the pilot program that. DOH officials assume DOH would collect ASSUMPTION (continued)



and compile data and maintain databases related to surgical procedures.



They would request a Research Analyst for the duration of the pilot program. This Analyst would be assigned duties related to the collection, compilation and management of the databases for all the categories of information that are required by this proposal. The analyst would assist UMKC - H&C in its efforts to enlist physician/surgeon participation across a range of specialties and identify and select a test group of surgical procedures. The Analyst would also prepare any interim reports and the final report on the program.



They would request a Senior Office Support-Keyboarding staff to provide clerical support for the duration of the pilot program.



DOH officials assume they would contract with the University of Missouri-Kansas City hospitals and clinics (UMKC - H&C) to pay for 0.15 FTE Physician, for the duration of the pilot program to subscribe participating physicians to the program and provide expert clinical advice in the development and use of educational materials and an Advanced Practice Nurse for the duration of the pilot program to develop and administer educational materials for the program and to administer data collection instruments.



They would contract with a 0.25 FTE Graphic Design Specialist to design, as needed, the paper or web-based surgical procedure educational materials and with a Research Analyst and Keyboard Specialist at UMKC.



Costs would be $255,399 in FY 04, $267,642 in FY 05, and $275,676 in FY 06.



Oversight has, for fiscal note purposes only, changed the starting salary for the DOH positions to correspond to the second step above minimum for comparable positions in the state's merit system pay grid. This decision reflects a study of actual starting salaries for new state employees for a six month period and the policy of the Oversight Subcommittee of the Joint Committee on

Legislative Research.





FISCAL IMPACT - State Government FY 2004

(10 Mo.)

FY 2005 FY 2006
GENERAL REVENUE
Costs - Department of Health and Senior Services
Personal Services (2 FTE) ($43,911) ($54,011) ($55,361)
Fringe Benefits ($17,771) ($21,858) ($22,405)
Expense and Equipment ($164,476) ($169,256) ($174,797)
ESTIMATED NET EFFECT ON GENERAL REVENUE



($226,158)


($245,125)


($252,563)




FISCAL IMPACT - Local Government FY 2004

(10 Mo.)

FY 2005 FY 2006
$0 $0 $0



FISCAL IMPACT - Small Business



No direct fiscal impact to small businesses would be expected as a result of this proposal.



DESCRIPTION



This proposal would require the Department of Health and Senior Services, in conjunction with the Department of Insurance and the University of Missouri-Kansas City Hospitals and Clinics, to establish the Comprehensive Patient Education and Healthcare Cost Improvement Pilot Program. The purpose of the program would be to improve the availability of patient information regarding risks and complications associated with elective surgical procedures.



The Pilot Program would begin no later than six (6) months after funding becomes available and would have a three (3) year duration.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This proposal would not affect Total State Revenue.





SOURCES OF INFORMATION



Department of Health and Senior Services

Department of Insurance

University of Missouri







Mickey Wilson, CPA

Director

March 19, 2003