FISCAL NOTE
FUND(S):
0407 Central Office General Adminstrative Fund; 5172 Health Facility Licensing Fund
Sources of Revenue:
General Fund,Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to require the Office of Health Facility Licensure and Certification (OHFLAC) to license free clinics within West Virginia.
This bill requires free clinics operating in West Virginia to obtain a license. According to the Office of Community Health Systems, there are currently nine (9) free clinics in West Virginia. Since free clinics are not currently licensed in West Virginia, this would require the writing of a free clinic licensure rule. This bill would also require increased survey activity to perform licensure inspections, complaint investigations and follow-up investigations.
The Department of Health and Human Resources estimates the cost of this bill to be $16,925 for the current year, which will be for the development of rules associated with the legislation. Estimated costs to implement the licensure activity is $28,084 for SFY2009 and SFY2010.
The Department estimates revenue from the licensing of the nine free clinics in the state to be $90 per year ($10/license x 9).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2008
Increase/Decrease
(use"-") |
2009
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
16,925 |
28,084 |
28,084 |
| Personal Services |
16,925 |
24,124 |
24,124 |
| Current Expenses |
0 |
3,960 |
3,960 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
90 |
90 |
Explanation of above estimates (including long-range effect):
Current year estimate (SFY2008): Salaries and Benefits of $16,925 for a H&HR Program Manager II to write and revise a free clinic licensure rule (1 FTE for 3 Months, April-June 2008).
SFY2009 and SFY2010 estimate: Salaries and Benefits of $24,124 for 0.1 H&HR Program Manager II to be responsible for compliance with the rule and for ensuring the completion of licensure surveys and follow-up surveys resulting from new regulations, 0.25 Health Facility Nurse Surveyor to perform licensure inspections and complaint investigations at the free clinics and 0.1 Office Assistant position to provide clerical support. Travel cost is estimated at $3,960 per year, beginning in SFY2009.
Revenue will be generated in the second year and thereafter from licensure fees. Nine free clinics will generate $90 in licensure revenue each year ($10 per inspection x 9 facilities).
Costs associated with this bill will participate in the Office of Health Facility Licensure and Certification cost allocation program. Up to fifty percent of the total cost may be general revenue, up to twenty-five percent may be federal funding and up to twenty-five percent may be special revenue funding.
Memorandum
Person submitting Fiscal Note: Martha Yeager Walker
Email Address: fnbudoff@wvdhhr.org