82R9206 CJC-F
By: Truitt H.B. No. 2854
A BILL TO BE ENTITLED
AN ACT
relating to the employment of physicians by certain hospitals
associated with nonprofit fraternal organizations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 311, Health and Safety Code, is amended
by adding Subchapter E to read as follows:
SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS
ASSOCIATED WITH NONPROFIT FRATERNAL ORGANIZATIONS
Sec. 311.061. APPLICABILITY OF SUBCHAPTER. This subchapter
applies only to a hospital that employs or seeks to employ a
physician, that primarily provides medical care to children younger
than 18 years of age, and that:
(1) is owned or operated by a nonprofit fraternal
organization; or
(2) has a governing body the majority of members of
which belong to a nonprofit fraternal organization.
Sec. 311.062. EMPLOYMENT OF PHYSICIANS PERMITTED. (a) A
hospital may employ a physician and retain all or part of the
professional income generated by the physician for medical services
provided at the hospital if the hospital satisfies the requirements
of this subchapter.
(b) The billing and receipt of third-party reimbursement
for medical care at a hospital does not affect the authority granted
to the hospital under this section.
Sec. 311.063. HOSPITAL DUTIES AND POLICIES. (a) A hospital
that employs physicians under this subchapter shall:
(1) appoint a chief medical officer, who may be a
member of the hospital's medical staff; and
(2) adopt, maintain, and enforce policies to ensure
that a physician employed by the hospital exercises the physician's
independent medical judgment in providing care to patients at the
hospital.
(b) The policies adopted under this section must include:
(1) policies relating to:
(A) credentialing;
(B) quality assurance;
(C) utilization review;
(D) peer review; and
(E) medical decision-making; and
(2) the implementation of a complaint mechanism to
process and resolve complaints regarding interference or attempted
interference with a physician's independent medical judgment.
(c) The policies adopted under this section must be approved
by the chief medical officer of the hospital.
(d) For all matters relating to the practice of medicine,
each physician employed by a hospital under this subchapter shall
ultimately report to the chief medical officer of the hospital.
Sec. 311.064. CONSTRUCTION OF SUBCHAPTER. This subchapter
may not be construed as authorizing the governing body of a hospital
to supervise or control the practice of medicine as prohibited
under Subtitle B, Title 3, Occupations Code.
SECTION 2. 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.