By: J. Davis of Harris (Senate Sponsor - Uresti) H.B. No. 2098
(In the Senate - Received from the House May 11, 2011;
May 12, 2011, read first time and referred to Committee on State
Affairs; May 21, 2011, reported favorably by the following vote:
Yeas 6, Nays 2; May 21, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the authority of physicians and physician assistants to
form certain entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 22, Business Organizations
Code, is amended by adding Section 22.0561 to read as follows:
Sec. 22.0561. CORPORATIONS FORMED BY PHYSICIANS AND
PHYSICIAN ASSISTANTS. (a) Physicians licensed under Subtitle B,
Title 3, Occupations Code, and physician assistants licensed under
Chapter 204, Occupations Code, may form a corporation to perform a
professional service that falls within the scope of practice of
those practitioners and consists of:
(1) carrying out research in the public interest in
medical science, medical economics, public health, sociology, or a
related field;
(2) supporting medical education in medical schools
through grants or scholarships;
(3) developing the capabilities of individuals or
institutions studying, teaching, or practicing medicine or acting
as a physician assistant;
(4) delivering health care to the public; or
(5) instructing the public regarding medical science,
public health, hygiene, or a related matter.
(b) A physician assistant may not be an officer of the
corporation.
(c) A physician assistant may not contract with or employ a
physician to be a supervising physician of the physician assistant
or of any physician in the corporation.
(d) The authority of each practitioner is limited by the
scope of practice of the respective practitioner. An organizer of
the entity must be a physician and ensure that a physician or
physicians control and manage the entity.
(e) Nothing in this section may be construed to allow the
practice of medicine by someone not licensed as a physician under
Subtitle B, Title 3, Occupations Code, or to allow a person not
licensed as a physician to direct the activities of a physician in
the practice of medicine.
(f) A physician assistant or combination of physician
assistants may have only a minority ownership interest in an entity
created under this section. The ownership interest of an
individual physician assistant may not equal or exceed the
ownership interest of any individual physician owner. A physician
assistant or combination of physician assistants may not interfere
with the practice of medicine by a physician owner or the
supervision of physician assistants by a physician owner.
(g) The Texas Medical Board and the Texas Physician
Assistant Board continue to exercise regulatory authority over
their respective license holders according to applicable law. To
the extent of a conflict between Subtitle B, Title 3, Occupations
Code, and Chapter 204, Occupations Code, or any rules adopted under
those statutes, Subtitle B, Title 3, or a rule adopted under that
subtitle controls.
SECTION 2. Subchapter B, Chapter 152, Business
Organizations Code, is amended by adding Section 152.0551 to read
as follows:
Sec. 152.0551. PARTNERSHIPS FORMED BY PHYSICIANS AND
PHYSICIAN ASSISTANTS. (a) Physicians licensed under Subtitle B,
Title 3, Occupations Code, and physician assistants licensed under
Chapter 204, Occupations Code, may create a partnership to perform
a professional service that falls within the scope of practice of
those practitioners.
(b) A physician assistant may not be a general partner or
participate in the management of the partnership.
(c) A physician assistant may not contract with or employ a
physician to be a supervising physician of the physician assistant
or of any physician in the partnership.
(d) The authority of each practitioner is limited by the
scope of practice of the respective practitioner. An organizer of
the entity must be a physician and ensure that a physician or
physicians control and manage the entity.
(e) Nothing in this section may be construed to allow the
practice of medicine by someone not licensed as a physician under
Subtitle B, Title 3, Occupations Code, or to allow a person not
licensed as a physician to direct the activities of a physician in
the practice of medicine.
(f) A physician assistant or combination of physician
assistants may have only a minority ownership interest in an entity
created under this section. The ownership interest of an
individual physician assistant may not equal or exceed the
ownership interest of any individual physician owner. A physician
assistant or combination of physician assistants may not interfere
with the practice of medicine by a physician owner or the
supervision of physician assistants by a physician owner.
(g) The Texas Medical Board and the Texas Physician
Assistant Board continue to exercise regulatory authority over
their respective license holders according to applicable law. To
the extent of a conflict between Subtitle B, Title 3, Occupations
Code, and Chapter 204, Occupations Code, or any rules adopted under
those statutes, Subtitle B, Title 3, or a rule adopted under that
subtitle controls.
SECTION 3. Section 301.012, Business Organizations Code, is
amended by adding Subsections (a-1), (a-2), (a-3), (a-4), (a-5),
(a-6), and (a-7) to read as follows:
(a-1) Persons licensed as physicians under Subtitle B,
Title 3, Occupations Code, and persons licensed as physician
assistants under Chapter 204, Occupations Code, may form and own a
professional association or a professional limited liability
company to perform professional services that fall within the scope
of practice of those practitioners.
(a-2) A physician assistant may not be an officer in the
professional association or limited liability company.
(a-3) A physician assistant may not contract with or employ
a physician to be a supervising physician of the physician
assistant or of any physician in the professional association or
limited liability company.
(a-4) The authority of each practitioner is limited by the
scope of practice of the respective practitioner. An organizer of
the entity must be a physician and ensure that a physician or
physicians control and manage the entity.
(a-5) Nothing in this section may be construed to allow the
practice of medicine by someone not licensed as a physician under
Subtitle B, Title 3, Occupations Code, or to allow a person not
licensed as a physician to direct the activities of a physician in
the practice of medicine.
(a-6) A physician assistant or combination of physician
assistants may have only a minority ownership interest in an entity
created under this section. The ownership interest of an
individual physician assistant may not equal or exceed the
ownership interest of any individual physician owner. A physician
assistant or combination of physician assistants may not interfere
with the practice of medicine by a physician owner or the
supervision of physician assistants by a physician owner.
(a-7) The Texas Medical Board and the Texas Physician
Assistant Board continue to exercise regulatory authority over
their respective license holders according to applicable law. To
the extent of a conflict between Subtitle B, Title 3, Occupations
Code, and Chapter 204, Occupations Code, or any rules adopted under
those statutes, Subtitle B, Title 3, or a rule adopted under that
subtitle controls.
SECTION 4. Subchapter B, Chapter 162, Occupations Code, is
amended by adding Section 162.053 to read as follows:
Sec. 162.053. JOINTLY OWNED ENTITIES WITH PHYSICIAN
ASSISTANTS. (a) A physician who jointly owns an entity with a
physician assistant shall report annually to the board the
ownership interest and other information required by board rule.
(b) The board shall assess a fee for processing each report
required by Subsection (a).
(c) A report filed under Subsection (a) is public
information for purposes of Chapter 552, Government Code.
SECTION 5. Subchapter E, Chapter 204, Occupations Code, is
amended by adding Section 204.209 to read as follows:
Sec. 204.209. JOINTLY OWNED ENTITIES WITH PHYSICIANS.
(a) A physician assistant who jointly owns an entity with a
physician shall report annually to the physician assistant board
the ownership interest and other information required by physician
assistant board rule.
(b) The physician assistant board shall assess a fee for
processing each report required by Subsection (a).
(c) A report filed under Subsection (a) is public
information for purposes of Chapter 552, Government Code.
SECTION 6. The restrictions on ownership interests in
Sections 22.0561, 152.0551, and 301.012, Business Organizations
Code, apply to an ownership interest acquired on or after the
effective date of this Act. An ownership interest acquired before
the effective date of this Act is governed by the law in effect at
the time the interest was acquired, and the former law is continued
in effect for that purpose.
SECTION 7. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2011.
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