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The Business of Health Care Report
The 2003 Legislative Agenda - December 2002


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Doug Hawthorne, President and CEO of Texas Health Resources I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD.

On today's program, we'll examine the important health care issues facing Texas in 2003.

Texas lawmakers convene next month to craft the budget for fiscal years 2004 and 2005, and they face enormous challenges to fund the state's needs - especially in a year when funds are in short supply.

Preliminary 2003 budget requests exceed the current state budget by more than $8 billion - a figure driven by projected increases in health care costs for state employees and teachers, Medicaid recipients and children. This, coupled with an economic slowdown, will hinder the state's ability to adequately fund public health programs that provide care for underserved populations.

Health care costs have been increasing at double-digit rates for several years. Medicaid and the Children's Health Insurance Program (CHIP) are expected to cost the state over $2.4 billion more than expected in the current budget and in 2004 and 2005, according to a budget request submitted by the Health and Human Services Commission.

The Legislature has expanded several state-funded health care programs so that in Fiscal Year 2003, about one of every five Texas residents, 4.2 million people, will receive state-funded health care. Medicaid is currently serving 200,000 more people than projected, and 20,000 more children than expected are enrolled in CHIP.

Other issues that are likely to be at the forefront of the debate in Austin are meaningful prompt-pay legislation, requiring standardized contracts between health plans and physicians, and the insurance crisis, including medical malpractice coverage for providers.

For Texas Health Resources and its family of hospitals - Harris Methodist Hospitals, Presbyterian Healthcare System and Arlington Memorial Hospital - I'm CEO Doug Hawthorne with "The Business of Health Care Report" on NewsRadio 1080 KRLD.

Doug Hawthorne

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