FISCAL NOTE
Date Requested: March 25, 2025
Time Requested: 01:27 PM |
| Agency: |
Inspector General, Office of the |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 3664 |
Comm. Sub. |
SB723 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
0437 - OFFICE OF THE INSPECTOR GENERAL, 5172 - HEALTH FACILITY LICENSING ACCOUNT
Sources of Revenue:
Other Fund General and Special
Legislation creates:
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
The purpose of this bill is to require residential medical treatment centers to treat people satisfying certain residency requirements. The bill requires the centers to have a percentage of patients that graduate from their program and are placed into a certified recovery residence. The bill requires the center to have an integrated care delivery model and to coordinate with the continuum of care. The bill requires reporting.
As of March 25, 2025, the number of clinical inpatient medical treatment centers for substance use disorder currently operating in West Virginia is estimated at 71 licensed residential facilities.
This bill requires each clinical inpatient medical treatment center for substance use disorder to provide a quarterly report to the Office of Inspector General (OIG). This report shall include the state of residence of each resident, placement rates of each graduate, total number of graduates, average length of stay, number of graduates successfully placed into a certified recovery residence or another level of care, number of graduates returning to the clinical inpatient medical treatment center within a 12-month period, and other pertinent data. The OIG shall review the data submitted and any other relevant information to determine if the facility is in compliance with this legislation. If the OIG determines that the facility is not in compliance, the facility will be provided with a written six-month improvement period to come into compliance and, if the facility remains out of compliance, the OIG may then hold a hearing to revoke the facility's license.
As the bill does not provide any information relating to licensure fees, no additional revenues will be realized. As a result, this bill will only impact estimated costs.
The Office of Inspector General estimates the fiscal impact of this legislation to be $110,317 the first year and $106,717 each subsequent year.
As the medication-assisted treatment program is not federally-funded, costs associated with this program will be paid from one or both of the General Fund (fund 0437) and Special Fund (fund 5172).
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2025
Increase/Decrease
(use"-") |
2026
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
0 |
110,317 |
106,717 |
| Personal Services |
0 |
80,605 |
80,605 |
| Current Expenses |
0 |
26,112 |
26,112 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
0 |
0 |
0 |
| Other |
0 |
3,600 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
The estimated cost of this legislation to the Office of Inspector General's (OIG) Office of Health Facility Licensure and Certification (OHFLAC) is $110,317 in FY 2026 and $106,717 upon full implementation.
It is anticipated that OHFLAC will need an additional 0.5 FTE Health and Human Resources Program Manager 1 and an additional 0.5 FTE employee to collect, review, and analyze data. The classification of the employee tasked with data verification will be determined at a later date. For the purposes of this cost estimate, the data verification employee is estimated to be paid at the same salary as a Health Facilities Surveyor 1.
The annual estimated costs of the additional Health and Human Services Program Manager 1 at 0.5 FTE is $43,581 for personal services (State average salary $64,564 x 0.5 FTE = $32,282 and fringe benefits at 35% ($32,282 x .35% = $11,299) for a total of $43,581.The annual estimated costs of the data verification employee (estimated to be paid at the same salary rate as the Health Facilities Surveyor 1) at 0.5 FTE is $37,024 for personal services (State average salary $54,850 x 0.5 FTE = $27,425 and fringe benefits at 35% ($27,425 x 35% = $9,599) for a total of $37,024. Total personal services is $80,605 ($43,581 + $37,024).
Current expenses (including rent, utilities, office supplies, and travel) are estimated at $24,112 and training at $2,000 for a total of $26,112. One-time equipment purchases will be needed at an estimated $3,600.
Total SFY2026 costs are $110,317 ($80,605 personal services and employee benefits + $26,112 current expense + 3,600 equipment). Ongoing costs total $106,717 ($80,605 personal services and employee benefits + $26,112 current expense).
Memorandum
Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.
Person submitting Fiscal Note: Ann Urling
Email Address: osafiscalnotes@wv.gov