The 82 nd Legislative Session Ben G. Raimer, MD Senior Vice President Health Policy and Legislative Affairs The University of Texas Medical Branch (cell)

Legislative Agenda (Sustaining our Mission) Tuition Revenue Bond (TRB) -- Construction of JSH Replacement Base Funding – maintains UTMB’s adjusted base from 81 st session Correctional Managed Health Care – obtain a new contract Supplemental Appropriations Request (SAR) Issues o Correctional Managed Care – UTMB and TTUHSC requested a $57M SAR to cover shortfalls for FY o Potential Ike Recovery Issue – The 81 st Legislature’s House Bill 4586 appropriated $150 million for Hurricane Ike recovery; the appropriation expired June 19,

Two Differing Points Of View House Bill 1 Hospital - 25% reduction Formula - 10% reduction TRB - no debt service Ike Recovery - nothing CMC - 24% reduction Indigent Care Fund - reduced Special item reductions (25%) Senate Bill 1 Hospital - 15% reduction Formula - 5% reduction TRB - no debt service Ike Recovery - nothing CMC - 24% reduction* Indigent Care Fund - reduced Special item reductions (25%) 3 *Added $200 million back on April 12, 2011

Conference Committee Outcomes House Bill 1 Hospital - 25% reduction Formula - 10% reduction TRB - no debt service Ike Recovery - nothing CMC – House 24% & Senate 10% reduction Indigent Care Fund - reduced from $10M/yr Special item reductions (25%) HB1 + HB4 (Conference) Hospital - 15% reduction Formula - 5% reduction TRB - Funded debt service Ike Recovery - 2 year extension of access to $150 million fund CMC - 14% reduction Indigent Care Fund - reduced to $5.75M per year Special item reductions (20%) $9+M to operations adjustment 4

Legislative Agenda (Sustaining our Mission) Tuition Revenue Bond (TRB) – Approved Base Funding – Used base, reduced but still better than Correctional Managed Health Care – new contract with TDCJ now responsible for deficits; UTMB’s role will be as vendor for care Supplemental Appropriations Request (SAR) Issues o Correctional Managed Care – UTMB and TTUHSC requested a $57M SAR to cover shortfalls for FY The full $57M was funded in HB 4. o Potential Ike Recovery Issue – The 81 st Legislature’s House Bill 4586 appropriated $150 million for Hurricane Ike recovery; the appropriation expired June 19, Legislature approved TWO additional years of access to recovery funds. 5