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F I S C A L I M P A C T R E P O R T
SPONSOR Jennings
DATE TYPED 2-25-05
HB
SHORT TITLE Health Care Provider Financial Disclosure
SB 791
ANALYST Collard
APPROPRIATION
Appropriation Contained Estimated Additional Impact Recurring
or Non-Rec
Fund
Affected
FY05
FY06
FY05
FY06
NFI
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC Files
Responses Received From
Human Services Department (HSD)
Aging and Long-Term Services Department (ALTSD)
Health Policy Commission (HPC)
SUMMARY
Synopsis of Bill
Senate Bill 791 requires any health care provider who refers or seeks consultation from an entity
in which the health care provider has a financial interest to disclose the interest to the patient or
the minor patient’s parents or guardians. The bill requires the provider to provide a list of alter-
native facilities if reasonably available. The bill requires written disclosure of financial interests
a provider has in an entity that the provider is referring the patient to. The provider is to inform
the patient that the patient has the option to use an alternative facility if reasonably available and
the bill requires that the provider will not treat the patient differently if the patient chooses the
alternative facility. Health care provider is defined and financial interest is defined in the bill.
Significant Issues
HSD notes, on the federal level, Section 1877 of the Social Security Act, there is a specific pro-
hibition against referrals to businesses that the health care provider has an interest in, as that type
of referral becomes a self-referral. The federal restriction is specific and prohibits such acts, and
this proposal is general, requiring only that notice be given of the potential self-referral, and pro-