COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. NO.: 2697-01

BILL NO.: SB 1012

SUBJECT: Contracts and Contractors; Health Care; Health Care Professionals; Physicians; Hospitals; Medical Procedures and Personnel

TYPE: Original

DATE: March 8, 2000




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2001 FY 2002 FY 2003
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.

FISCAL ANALYSIS



ASSUMPTION



Officials from the Missouri Consolidated Health Care Plan, the Department of Public Safety - Missouri State Highway Patrol, the Department of Social Services, the Department of Conservation, and the Department of Transportation assume this proposal would not fiscally impact their agencies.





FISCAL IMPACT - State Government FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0





FISCAL IMPACT - Local Government FY 2001

(10 Mo.)

FY 2002 FY 2003
$0 $0 $0





FISCAL IMPACT - Small Business



Small businesses would expect to be fiscally impacted to the extent that they would incur additional administrative costs due to the requirements of this proposal.



DESCRIPTION



This proposal would prohibit the utilization of non-compete clauses in certain situations and would clarify the extent to which they may be used in other situations. A new Section 334.108 would make covenants not to compete enforceable except when they would be part of a physician's contract with a not-for-profit health services corporation as defined in Section 354.010. Covenants with other health care facilities would enforceable as long as they: 1. Do not deny the physician access to a list of patients the physician saw within a year of contract termination; 2. Provide access to patient medical records with the patient's consent and in an accessible format; 3. Provide for a buy-out of the covenant by the physician at a reasonable price; and 4. Provide that the physician would not be prohibited from providing continuing treatment to specific acutely ill patients after the contract has terminated.





DESCRIPTION (continued)



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



Missouri Consolidated Health Care Plan

Department of Social Services

Department of Transportation

Department of Public Safety

Missouri State Highway Patrol

Department of Conservation

















Jeanne Jarrett, CPA

Director

March 8, 2000