Texas Senate Bill SB744

Texas 2019 - 86th Regular

Caption

Relating to the relationship between physicians or health care providers and health maintenance organizations or preferred provider benefit plans.

Impact

The bill introduces an advisory review panel that gives healthcare providers the right to contest terminations, thereby granting them more power in their contracts with HMOs. It sets a legal framework ensuring that providers are informed and can present evidence during the review process. This is a significant enhancement of protections for healthcare providers, particularly those who may be unjustly terminated without cause.

Summary

SB744 addresses the contractual relationship between healthcare providers and health maintenance organizations (HMOs) or preferred provider benefit plans. The bill mandates that before an HMO can terminate a contract with a physician or healthcare provider, it must provide written notice, including the reasons for termination and information on the options for review. This aims to create more transparency and accountability in the process of contract termination, which had previously been perceived as arbitrary or lacking in due process.

Contention

While proponents of the bill laud it for enhancing due process for healthcare providers, critics may argue that it could complicate the termination process for HMOs, potentially leading to an increased burden in managing contracts with providers. Discussions surrounding the bill include potential impacts on costs for HMOs and how that may translate into patient care quality and access. Another point of contention is how the changes will affect the overall efficiency of healthcare systems, with concerns that a lengthy review process could prevent prompt action in cases where patient health is at risk.