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SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Amendment

House Appropriations and Finance Committee amendment to House Bill 604 does the following:

1. Inserts language on page 2, line 12, to now allow "state institutions of higher learning" to be eligible entities for contracts for behavior health services with the Department of Health.

2. Changes the word "alcoholism" to the term "substance abuse" to make it consistent with all other references of that term in the bill.

Synopsis of Bill

House Bill 604 amends current statutes, adds new sections and recompiles other sections to change the way the Department of Health contracts for behavior health services. The bill adds new definitions and makes changes to reflect the new status of the insurance division within the new Public Regulation Commission. The bill removes from definition "detoxification program", long-term rehabilitation program", "outpatient program", "prevention program", and "short-rehabilitation program". The bill adds "statewide substance abuse service plan" to the definitions and further defines minimum standards of service for DWI programs in accordance with the department's' behavior health service rules that are to be adopted pursuant to this new legislation. The bill also requires a statewide substance abuse service plan and requires utilization of the plan when measuring new proposals for programs. The bill also defines an alcohol dependency treatment center as one that is under the direction of a physician or meets the quality standards of the Department of Health and which also is affiliated with a hospital and is accredited as such a facility by the joint commission on accreditation of hospitals.

Significant Issues

House Bill 604 requires the Department of Health continue to develop and adhere to a comprehensive plan that demands outcome measures and requires the department to measure programs according to their performance against those outcome measures. The plan requires public comment and input into the provisions of the plan on a yearly basis.

House Bill 604 also requires the department to establish standards that include quality management and improvement, performance measures, accessibility and availability of services, utilization management, credentialing and recredentialing, rights and responsibilities of providers, preventative behavior health services, and the documentation and confidentiality of patient records.

FISCAL IMPLICATIONS

The provisions of this act also require the department to open up the number and type of provider it may now contract with. Included in this new listing of contractors is counties and municipalities, for-profit corporations, tribal and pueblo governments, and regional provider organizations. Development of these new provider resources as well as dealing with the current provider organizations with regard to the new standards that must be in place will have a fiscal impact on the state. The standards will demand a new level of health care provision and the credentialing of individuals who will provide these services. The professional credentialing of substance abuse service providers will have the effect of costing more money. The development of regulations will also have the effect of raising the price of services as compliance with the new regulations will be a cost of doing business that is passed along to the state as part of the contract price.

ADMINISTRATIVE IMPLICATIONS

Development of new rules and guidelines and the receiving of public input into the plan development will require additional effort by the department. Administration of these new provisions is within the budgeted capacity of the department.

OTHER SUBSTANTIVE ISSUES

Raising the standards for the treatment of DWI individuals and others in substance abuse programs may have the effect of increasing the number of individuals who successfully conquer this disease and who may go on to live productive lives. At the present time, twelve step programs and in-patient detoxification programs with extensive counseling and follow-up seem to be the best approaches to the treatment of this problem. Costs associated with this increased quality assurance should be carefully measured to measure the cost/benefit of this new standardization.

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