FISCAL NOTE
Date Requested: January 29, 2024
Time Requested: 12:10 PM |
| Agency: |
Health Facility Licensure & Certification, Office of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3149 |
Introduced |
HB5248 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
0407 - Central Office General Administrative Fund; 5172 - Health Facilities Licensing Account
Sources of Revenue:
General Fund
Legislation creates:
Increases Existing Expenses
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to consolidate and update the behavioral health center licensing provisions and requirements. This update would separate behavioral health centers based on treatment settings, residential or non-residential. This division would allow better regulation of the facilities based on the treatment setting. Modernization of licensing fees and civil money penalties are to address issues related to behavioral health centers.
The Office of the Inspector General estimates the fiscal impact of this legislation to be $109,888. Current licensed behavioral health centers that provide both residential and non-residential services will be required to have a separate license for these services with inspection by the Office of Health Facility Licensure and Certification.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2024
Increase/Decrease
(use"-") |
2025
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
109,888 |
109,888 |
| Personal Services |
0 |
79,205 |
79,205 |
| Current Expenses |
0 |
30,683 |
30,683 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
6,250 |
6,250 |
Explanation of above estimates (including long-range effect):
The estimated cost of this legislation to the Office of Inspector General's (OIG) Office of Health Facility Licensure and Certification (OHFLAC) is $109,888 in FY2025 and upon full implementation.
OHFLAC currently has 211 licensed providers, requiring bi-annual surveys. Of these 211 licensed providers, approximately 50 provide both residential and non-residential services. This bill would place the responsibility of licensing and conducting 50 additional bi-annual surveys / compliance inspections for those providing both out-patient and residential services. The amounts noted above reflect the cost of 25 surveys annually, including salary, fringe benefits, travel expenses, and vehicle.
Based upon the number of surveys completed in calendar year 2023 (108), it is estimated that one additional Health Facility Surveyor 1 position would be needed to cover the additional 25 surveys for the year. This would equate to $79,205 for personal services (average salary of $58,670 plus benefits of $20,535 (35%)).
Current expense costs are based on travel and vehicle expense for SFY2023 for the 108 surveys that were provided. Total current expense is estimated at $30,683. Travel costs were approximately $100,000 for 108 surveys which would average $926 per survey or $23,150 for all (926 x 25 surveys). Vehicle costs including rental, fuel, maintenance was approximately $24,908 to cover the 108 surveys performed which would average $231 per survey or $5,775 for 25 surveys (231 x 25 surveys).
Revenue listed would be generated from the collection of licensure fees from the estimated 50 providers, over the two year period, with fluctuation in the amount collected based on licensure fee rates. Upon implementation fees would be calculated at 25 providers by the $250 application fee.
Revenues will increase and are estimated to be _$6,250.00___.
Memorandum
This bill allows behavioral health centers to be solely 100% telehealth. Based on research, this is not permitted in the following surrounding states: Maryland, Virginia, Pennsylvania, Kentucky, and OHFLAC is waiting on a response from Ohio. Based on this, the amount of staff needed to handle the electronic surveys for these facilities is unknown as there is no known data from surrounding states to guestimate the influx of behavioral health centers that may wish to provide solely telehealth services in WV. Furthermore, there is no way to know how many electronic health record systems the OHFLAC surveyors will need to be proficient in to adequately conduct review of medical records and other services needed to be reviewed for surveys.
WV Code ยง 16-2D-9(5)(2023) limits the number of residential substance use disorder beds to 250 per county which will continue to be enforced with these new provisions.
Also, this bill states: ""Group residential home" means a residence owned or leased by a developmentally disabled or behaviorally disabled persons for the purpose of establishing a personal residence. A behavioral health center shall not lease a residence to such persons if the behavioral health center is providing behavioral health services to those persons." Currently, such situations are allowed. There are approximately 56 homes with 161 licensed beds that may be affected by this new requirement.
Person submitting Fiscal Note: Dr. Sherri A Young, D.O., MBA, FAAFP
Email Address: dhhrbudgetoffice@wv.gov