By: Estes S.B. No. 1255
(King of Parker)
A BILL TO BE ENTITLED
AN ACT
relating to the employment of physicians by certain municipal
hospital authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (b), Section 262.023, Health and
Safety Code, is amended to read as follows:
(b) The board may delegate to the manager or executive
director the authority to manage the hospital and to employ and
discharge employees other than physicians hired in accordance with
Section 262.0235.
SECTION 2. Subchapter C, Chapter 262, Health and Safety
Code, is amended by adding Section 262.0235 to read as follows:
Sec. 262.0235. EMPLOYMENT OF PHYSICIANS. (a) This section
applies only to an authority that is created by the governing body
of a municipality with a population of less than 10,000 and that
owns or operates a hospital with more than 50 licensed beds.
(b) The board of an authority may employ a physician and
retain all or part of the professional income generated by the
physician for medical services provided at a hospital or other
health care facility owned or operated by the authority if the board
satisfies the requirements of this section.
(c) The board of an authority shall:
(1) appoint a chief medical officer for the authority
who has been recommended by the medical staff of the authority; and
(2) adopt, maintain, and enforce policies to ensure
that a physician employed by the authority exercises the
physician's independent medical judgment in providing care to
patients.
(d) The policies adopted under this section must include:
(1) policies relating to:
(A) credentialing and privileges;
(B) quality assurance;
(C) utilization review;
(D) peer review and due process; 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) The policies adopted under this section must be approved
by the medical staff of the authority. The medical staff of the
authority and the board shall jointly develop and implement a
conflict management policy to resolve any conflict between a
medical staff policy and a board policy.
(f) For all matters relating to the practice of medicine,
each physician employed by an authority shall ultimately report to
the chief medical officer of the authority.
(g) The chief medical officer shall notify the Texas Medical
Board that the board is employing physicians under this section and
that the chief medical officer is the board's designated contact
with the Texas Medical Board. 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.
(h) The board of an authority shall give equal consideration
regarding the issuance of medical staff membership and privileges
to physicians employed by the authority and physicians not employed
by the authority.
(i) A physician employed by an authority shall retain
independent medical judgment in providing care to patients and may
not be disciplined for reasonably advocating for patient care.
(j) If an authority provides professional liability
coverage for physicians employed by the authority, a physician
employed by the authority may participate in the selection of the
professional liability coverage, has the right to an independent
defense at the physician's own cost, and retains the right to
consent to the settlement of any action or proceeding brought
against the physician.
(k) If a physician employed by an authority enters into an
employment agreement that includes a covenant not to compete, the
agreement is subject to Section 15.50, Business & Commerce Code.
(l) The board of an authority may not delegate to the
manager or executive director of a hospital owned or operated by the
hospital authority the authority to hire a physician.
(m) This section may not be construed as authorizing the
board to supervise or control the practice of medicine as
prohibited under Subtitle B, Title 3, Occupations Code.
SECTION 3. 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.