OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-351

AN ACT CONCERNING MATTERS AFFECTING PHYSICIANS AND HOSPITALS.

As Amended by Senate "A" (LCO 5012), Senate "B" (LCO 5167)

Senate Calendar No.: 350

OFA Fiscal Note

State Impact:

Agency Affected

Fund-Effect

FY 17 $

FY 18 $

UConn Health Ctr.

GF/ Clinical Fund- Potential Cost/Revenue Loss

See below

See below

Note: GF=General Fund

Municipal Impact: None

Explanation

The bill results in a potential future cost and revenue loss to the University of Connecticut Health Center (UCHC) by setting limits on physician non-compete agreements under certain circumstances. Non-compete agreements are used to protect initial investments, and ensure that physicians do not leave the institution to develop or join competing practices close by once they are acclimated to the area and have developed a patient base. Limiting such agreements may require the UCHC to provide inducements for physicians to remain with the UCHC. Additionally the UCHC could lose clinical revenue if patients follow physicians to their new practices. The costs and revenue loss are dependent upon the actions of individual physicians and are not anticipated to be significant in nature.

Senate “A” (LCO 5012) struck the underlying bill and resulted in the fiscal impact described above. Senate “B” was technical and results in no fiscal impact.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

The preceding Fiscal Impact statement is prepared for the benefit of the members of the General Assembly, solely for the purposes of information, summarization and explanation and does not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.