COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 1511-01

Bill No.: SB 558

Subject: Health Care; Health Care Professionals; Hospitals; Medical Procedures and Personnel; Physicians

Type: Original

Date: March 26, 2001




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
None
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2002 FY 2003 FY 2004
Local Government $0 $0 $0

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



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



FISCAL IMPACT - State Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$0 $0 $0





FISCAL IMPACT - Local Government FY 2002

(10 Mo.)

FY 2003 FY 2004
$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 clarify the use of non-compete clauses in contracts between physicians and hospitals. A new Section 334.113 would be created and would make covenants not to compete enforceable except when they are 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 be enforceable as long as they: 1) Do not deny the physician access to a list of patients the physician had seen within a year of 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.



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 Insurance

Missouri Consolidated Health Care Plan

Department of Social Services

Department of Conservation

Department of Transportation

Department of Public Safety

Missouri State Highway Patrol

Department of Economic Development

Division of Professional Registration















Jeanne Jarrett, CPA

Director



March 26, 2001