By: McReynolds H.B. No. 4046 A BILL TO BE ENTITLED AN ACT relating to the creation of nonprofit health corporations with assistance from the Texas Rural Foundation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Title 4, Subtitle F, Chapter 487, Subchapter P, Government Code, is amended by adding Sections 487.714 and 487.715 to read as follows: Sec. 487.714. ADVISORY COMMITTEE ON NONPROFIT HEALTH CORPORATIONS. (a) Texas Rural Foundation may, through the assistance of a physician advisory committee, help to establish and provide technical assistance to create at least one and not more than 12 nonprofit health corporations as defined by Section 162.001(b), Occupations Code. The Rural Foundation may designate geographic districts and each such district's nonprofit health corporation shall be eligible to provide services to the district as provided in this section. (1) for the purpose of this section the Texas Rural Foundation shall find an organizational entity or serve as a temporary organizational entity for the establishment of a health corporation as defined by Section 162.001(b), Occupations Code for this purpose of this subsection. (b) A nonprofit health corporation established by the advisory committee under this section is authorized to provide the following services: (1) physician services to contracting hospitals in the district covered by the nonprofit health corporation; (2) peer review and quality assurance programs at a contracting hospital; (3) a uniform electronic medical record system that satisfies interoperability standards as set by the Secretary of the Department of Health and Human Services; (4) health, life, and disability insurance, and retirement plan benefits for physicians working at a contracting hospital; (5) administrative services and expertise including human resources services; and (6) primary care residency training programs. (c) A nonprofit health corporation under this section is a Health Care Entity as defined by Section 151.002, Occupations Code, and any peer review or quality assurance performed or provided under this section is a medical peer review action under Chapter 160, Occupations Code. (d) A hospital or hospital district is eligible to contract with a nonprofit health corporation created under this section only if: (1) the hospital or hospital district is in a county with a population of 25,000 or less; and (2) the hospital or hospital district has an active or courtesy medical staff of seven or fewer physicians. (e) The advisory committee created under this section may accept funds through the Rural Community Facilities Program Account as specified in Division A, Title I of the American Reinvestment and Recovery Act to carry out the duties and functions under this section. Sec. 487.715. IMMUNITY FROM LIABILITY. (a) The state, Office of Rural Community Affairs, Texas Rural Foundation, physician advisory committee, shall be immune from civil liability related to the establishment of the nonprofit health corporations under Section 487.714 to the extent that such entities and persons are acting in good faith and within the scope of their authority under that section. (b) This section does not waive any immunity of the state or of a political subdivision of the state or any employee or officer. (c) To the extent that this section limits the liability of a governmental unit under circumstances in which the governmental unit would be liable under Chapter 101, Civil Practices and Remedies Code, this section controls. SECTION 2. This Act takes effect September 1, 2009.