By: Chisum H.B. No. 729 Substitute the following for H.B. No. 729: By: Jackson C.S.H.B. No. 729 A BILL TO BE ENTITLED AN ACT relating to the authority of the board of directors of the Ochiltree County Hospital District to employ health care providers. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 1071.062, Special District Local Laws Code, is amended by amending Subsections (b) and (c) and adding Subsection (d) to read as follows: (b) The board may employ physicians, technicians, nurses, other health care providers, fiscal agents, accountants, and other necessary employees. (c) The board may delegate to the district administrator the authority to hire employees under Subsection (b) other than physicians. (d) 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. Section 1071.064, Special District Local Laws Code, is amended by adding Subsections (b), (c), (d), (e), (f), and (g) to read as follows: (b) The board may employ a physician and retain all or part of the professional income generated by the physician for medical services provided at the hospital and other health facilities owned or operated by the hospital if the hospital satisfies the requirements of this subchapter. (c) The board 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. (d) 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. (e) For all matters relating to the practice of medicine, each physician employed by the hospital under this subchapter shall ultimately report to the chief medical officer of the hospital. (f) The policies adopted under this section: (1) must be approved by the chief medical officer of the hospital; and (2) shall control and prevail in the event of a conflict with any other policies of a hospital under this subchapter. (g) The chief medical officer shall immediately report to the Texas Medical Board any action or event that the chief medical officer reasonably and in good faith believes constitutes a compromise of the independent medical judgment of a physician in caring for a patient." 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.