FISCAL NOTE
FUND(S):
Medicaid State Share Fund
Sources of Revenue:
Special Fund
Legislation creates:
Neither Program nor Fund
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The stated purpose of this bill is to clarify the intent of the Legislature as to the activities that qualify as physicians’ services for purposes of the health care provider tax.
As written, this bill adds clarifying language to the definition of physicians’ services to specifically include those services furnished by a physician within the scope of the practice of medicine or osteopathy no matter the location at which those services are provided. The bill also clarifies that while the term “physicians’ services” includes those professional services directly furnished by a physician in the scope of his or her employment by a hospital, other services rendered in conjunction with hospital-employed physicians’ services, such as the use of hospital facilities, staff, equipment, drugs and supplies ordinarily furnished by a hospital are not considered physicians’ services. Passage of this bill would help maintain the long-standing in-patient hospital revenue classification practices generally followed by hospitals and the State Tax Department since the inception of the Health Care Provider Tax in 1993. Revenues from the Health Care Provider Tax complement other State funds to provide the necessary match to federal Medicaid funds to maintain a viable Medicaid Program for the West Virginia health care delivery system.
Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2009
Increase/Decrease
(use"-") |
2010
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
0 |
0 |
| Personal Services |
0 |
0 |
0 |
| Current Expenses |
0 |
0 |
0 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
As written, this bill adds clarifying language to the definition of physicians’ services to specifically include those services furnished by a physician within the scope of the practice of medicine or osteopathy no matter the location at which those services are provided. The bill also clarifies that while the term “physicians’ services” includes those professional services directly furnished by a physician in the scope of his or her employment by a hospital, other services rendered in conjunction with hospital-employed physicians’ services, such as the use of hospital facilities, staff, equipment, drugs and supplies ordinarily furnished by a hospital are not considered physicians’ services. Passage of this bill would help maintain the long-standing in-patient hospital revenue classification practices generally followed by hospitals and the State Tax Department since the inception of the Health Care Provider Tax in 1993. Revenues from the Health Care Provider Tax complement other State funds to provide the necessary match to federal Medicaid funds to maintain a viable Medicaid Program for the West Virginia health care delivery system.
Additional administrative costs to the State Tax Department associated with passage of this bill would be minimal.
Memorandum
The stated purpose of this bill is to clarify the intent of the Legislature as to the activities that qualify as physicians’ services for purposes of the health care provider tax.
As written, this bill first defines physicians’ services to specifically include those “services furnished by a physician within the scope of the practice of medicine or osteopathy” no matter the location at which those services are provided. The bill then states “the term “physicians’ services” includes those professional services directly furnished by a physician in the scope of his or her employment by a hospital.” The term “professional services” could possibly be interpreted to include non-medical related services such as legal services, accounting services, etc.
Person submitting Fiscal Note: Mark Muchow
Email Address: kpetry@tax.state.wv.us