Texas 2011 - 82nd Regular

Texas House Bill HB1700 Compare Versions

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1	1	82R19481 ALB-F
2	2	By: Coleman, Chisum, Hopson, Darby, et al. H.B. No. 1700
3	3	Substitute the following for H.B. No. 1700:
4	4	By: Hamilton C.S.H.B. No. 1700
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to employment of physicians by certain hospitals.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Chapter 311, Health and Safety Code, is amended
12	12	by adding Subchapter E to read as follows:
13	13	SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS
14	14	Sec. 311.061. APPLICABILITY AND CONSTRUCTION OF
15	15	SUBCHAPTER. (a) This subchapter applies only to a hospital that
16	16	employs or seeks to employ a physician and that:
17	17	(1) is designated as a critical access hospital under
18	18	the authority of and in compliance with 42 U.S.C. Section 1395i-4;
19	19	(2) is a sole community hospital, as that term is
20	20	defined by 42 U.S.C. Section 1395ww(d)(5)(D)(iii); or
21	21	(3) is located in a county with a population of 50,000
22	22	or less.
23	23	(b) This subchapter may not be construed as authorizing the
24	24	governing body of a hospital to supervise or control the practice of
25	25	medicine, as prohibited under Subtitle B, Title 3, Occupations
26	26	Code.
27	27	(c) This subchapter applies to medical services provided by
28	28	a physician at the hospital and other health care facilities owned
29	29	or operated by the hospital.
30	30	Sec. 311.062. EMPLOYMENT OF PHYSICIANS PERMITTED. A
31	31	hospital may employ a physician and retain all or part of the
32	32	professional income generated by the physician for medical services
33	33	provided at the hospital and other health care facilities owned or
34	34	operated by the hospital if the hospital satisfies the requirements
35	35	of this subchapter.
36	36	Sec. 311.063. HOSPITAL DUTIES AND POLICIES. (a) A hospital
37	37	that employs physicians under this subchapter shall:
38	38	(1) appoint a chief medical officer who has been
39	39	recommended by the medical staff of the hospital and approved by the
40	40	governing board of the hospital; and
41	41	(2) adopt, maintain, and enforce policies to ensure
42	42	that a physician employed by the hospital exercises the physician's
43	43	independent medical judgment in providing care to patients at the
44	44	hospital and other health care facilities owned or operated by the
45	45	hospital.
46	46	(b) The policies adopted under this section must include:
47	47	(1) policies relating to:
48	48	(A) credentialing and privileges;
49	49	(B) quality assurance;
50	50	(C) utilization review;
51	51	(D) peer review and due process; and
52	52	(E) medical decision-making; and
53	53	(2) the implementation of a complaint mechanism to
54	54	process and resolve complaints regarding interference or attempted
55	55	interference with a physician's independent medical judgment.
56	56	(c) The policies adopted under this section must be approved
57	57	by the medical staff of the hospital.
58	58	(d) For all matters relating to the practice of medicine,
59	59	each physician employed by a hospital under this subchapter shall
60	60	ultimately report to the chief medical officer of the hospital. The
61	61	policies adopted under this section must be approved by the medical
62	62	staff of the hospital. In the event of a conflict between a policy
63	63	adopted by the medical staff and a policy of the hospital, a
64	64	conflict management process shall be jointly developed and
65	65	implemented to resolve any such conflict.
66	66	(e) The chief medical officer shall notify the Texas Medical
67	67	Board that the hospital is employing physicians under this
68	68	subchapter and that the chief medical officer will be the
69	69	hospital's designated contact with the Texas Medical Board. The
70	70	chief medical officer shall immediately report to the Texas Medical
71	71	Board any action or event that the chief medical officer reasonably
72	72	and in good faith believes constitutes a compromise of the
73	73	independent medical judgment of a physician in caring for a
74	74	patient.
75	75	(f) The hospital shall give equal consideration regarding
76	76	the issuance of medical staff membership and privileges to
77	77	physicians employed by the hospital and physicians not employed by
78	78	the hospital.
79	79	(g) A physician employed by a hospital shall retain
80	80	independent medical judgment in providing care to patients at the
81	81	hospital and other health care facilities owned or operated by the
82	82	hospital and may not be disciplined for reasonably advocating for
83	83	patient care.
84	84	(h) If a hospital provides professional liability coverage
85	85	for a physician employed by a hospital, the physician may
86	86	participate in the selection of the professional liability
87	87	coverage, has the right to an independent defense if the physician
88	88	pays for that independent defense, and shall retain the right to
89	89	consent to the settlement of any action or proceeding brought
90	90	against the physician.
91	91	(i) If a physician employed by a hospital enters into an
92	92	employment agreement that includes a covenant not to compete, the
93	93	agreement shall be subject to Section 15.50, Business & Commerce
94	94	Code, and any other applicable provisions.
95	95	SECTION 2. This Act takes effect immediately if it receives
96	96	a vote of two-thirds of all the members elected to each house, as
97	97	provided by Section 39, Article III, Texas Constitution. If this
98	98	Act does not receive the vote necessary for immediate effect, this
99	99	Act takes effect September 1, 2011.