Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor


February 14, 2024


The Honorable Susan Concannon, Chairperson
House Committee on Child Welfare and Foster Care
300 SW 10th Avenue, Room 152-S
Topeka, Kansas 66612
Dear Representative Concannon:
SUBJECT: Fiscal Note for HB 2742 by House Committee on Child Welfare and Foster
Care
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2742 is
respectfully submitted to your committee.
HB 2742 would require the Department for Children and Families (DCF) to reimburse a
hospital the actual rate that the hospital would receive for inpatient admission when a child in
custody of the DCF remains at the hospital and is no longer receiving medical care.
The DCF foster care program is privatized and Case Management Providers (CMP) are
responsible for the case management and placement of children. DCF directly pays Child Placing
Agencies and residential facilities for each placement day. When a child is in a placement such as
a hospital or psychiatric residential treatment facility, those costs are usually covered by Medicaid.
In rare cases, these stays are not medically necessary per Medicaid rules and in these situations the
CMP pays for those uncovered costs and works with DCF to be reimbursed. DCF paid over $1.1
million in FY 2023 in other placement costs, which includes hospital stays where Medicaid was
not applicable. DCF assumes that it would continue to be the payor of last resort for these
expenses. Since DCF has these procedures in place, DCF assumes there would be no fiscal effect
for the agency for enactment of HB 2742. The Office of Judicial Administration states that
enactment of HB 2742 would have no fiscal effect on the Judicial Branch.

Sincerely,

Adam C. Proffitt
Director of the Budget
cc: Trisha Morrow, Judiciary
Kim Holter, Department for Children & Families


Statutes affected:
As introduced: 38-2217