Assigned to HEA & APPROP                                                                                       FOR COMMITTEE

 

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1038

 

medical services; rural areas

 

Purpose

 

Appropriates $2.5 million in FYs 2001-2002 and 2002-2003 from the medically needy account to the Department of Health Services (DHS) for capital project grants for public and nonprofit entities and appropriates $500,000 annually from the medically needy account for telemedicine pilot programs.

 

Background

 

 

Capital Project Grants

 

For FY 1997-1998, the Legislature appropriated $2.5 million from the medically needy account to DHS for capital project grants to public and private nonprofit entities that provide health care in rural and medically underserved areas (Laws 1997, Chapter 257).  The capital projects may include the purchase or lease of land, buildings, mobile medical clinics, equipment and furnishings, telemedicine equipment and facilities and other costs necessary to construct, expand or renovate health care facilities to expand or provide primary care services.  Various communities have received grants through this program, including: Ash Fork, Buckeye, Elfrida, Gila Bend, Marana, Maricopa, Maricopa County, Nogales, Page, Phoenix, St. Johns, St. Michaels and Tucson.

 

In previous years, the Legislature has reauthorized this program by appropriating $2.5 million in FY 1998-1999 and FY 1999-2000.  However, funding for this program was not continued in 2000.  S.B. 1038 re-establishes this program by appropriating, subject to availability, $2.5 million in FY 2001-2002 and FY 2002-2003 from the medically needy account for capital project grants to public and private nonprofit entities providing healthcare in rural or medically underserved areas.

 

Telemedicine

 

Telemedicine is the use of telecommunications to provide medical diagnosis and patient care in areas that are a distance from the health care provider. In 1995 the Legislature, established the telemedicine pilot program (Laws 1995, Chapter 275).  The Legislature extended the pilot program in 1998 and 1999.

 

The pilot program is designed to provide medical services in medically underserved areas, including Flagstaff, Show Low, St. Johns, Page and Prescott through the use of telecommunications between urban sites and rural communities.  Emphasis is placed on providing services to low income, indigent and uninsured persons.  Available services include primary care, preventive care, specialty care and consultation and behavioral health services.  S.B. 1038 reauthorizes this program and makes it permanent in statute by appropriating, subject to availability, $500,000 annually from the medically needy account to DHS for telemedicine services. 

 

Provisions

 

Capital Project Grants

 

1.      Appropriates $2.5 million in FYs 2001-2002 and 2002-2003 from the medically needy account to DHS for capital project grants for public and nonprofit entities that provide health services in rural areas.

 

2.      Sets a maximum of $500,000 for a single capital project grant.

 

3.      Directs DHS to give preference to applicants that provide telemedicine services in rural areas and to applicants with matching or in-kind contributions.

 

4.      Prohibits DHS from funding capital projects that receive monies under the primary care program. 

 

5.      Limits recipients to a maximum of two capital project grants total and to one capital project grant in a two-year period.

 

6.      Defines capital projects.

 

Telemedicine

 

7.      Appropriates, subject to the availability of monies, $500,000 annually beginning in FY 2001-2002 from the medically needy account for telemedicine pilot programs designed to facilitate the provision of medical services in medically underserved areas.

 

8.      Provides for a general effective date.

 

 

Prepared by Senate Staff

February 16, 2001