Texas 2011 - 82nd Regular

Texas Senate Bill SB894 Compare Versions

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1	1	By: Duncan, et al. S.B. No. 894
2	2	(Coleman)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to employment of physicians by certain hospitals.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Chapter 311, Health and Safety Code, is amended
10	10	by adding Subchapter E to read as follows:
11	11	SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS
12	12	Sec. 311.061. APPLICABILITY AND CONSTRUCTION OF
13	13	SUBCHAPTER. (a) This subchapter applies only to a hospital that
14	14	employs or seeks to employ a physician and that:
15	15	(1) is designated as a critical access hospital under
16	16	the authority of and in compliance with 42 U.S.C. Section 1395i-4;
17	17	(2) is a sole community hospital, as that term is
18	18	defined by 42 U.S.C. Section 1395ww(d)(5)(D)(iii); or
19	19	(3) is located in a county with a population of 50,000
20	20	or less.
21	21	(b) This subchapter may not be construed as authorizing the
22	22	governing body of a hospital to supervise or control the practice of
23	23	medicine, as prohibited under Subtitle B, Title 3, Occupations
24	24	Code.
25	25	(c) This subchapter applies to medical services provided by
26	26	a physician at the hospital and other health care facilities owned
27	27	or operated by the hospital.
28	28	Sec. 311.062. EMPLOYMENT OF PHYSICIANS PERMITTED. A
29	29	hospital may employ a physician and retain all or part of the
30	30	professional income generated by the physician for medical services
31	31	provided at the hospital and other health care facilities owned or
32	32	operated by the hospital if the hospital satisfies the requirements
33	33	of this subchapter.
34	34	Sec. 311.063. HOSPITAL DUTIES AND POLICIES. (a) A
35	35	hospital that employs physicians under this subchapter shall:
36	36	(1) appoint a chief medical officer who has been
37	37	recommended by the medical staff of the hospital and approved by the
38	38	governing board of the hospital; and
39	39	(2) adopt, maintain, and enforce policies to ensure
40	40	that a physician employed by the hospital exercises the physician's
41	41	independent medical judgment in providing care to patients at the
42	42	hospital and other health care facilities owned or operated by the
43	43	hospital.
44	44	(b) The policies adopted under this section must include:
45	45	(1) policies relating to:
46	46	(A) credentialing and privileges;
47	47	(B) quality assurance;
48	48	(C) utilization review;
49	49	(D) peer review and due process; and
50	50	(E) medical decision-making; and
51	51	(2) the implementation of a complaint mechanism to
52	52	process and resolve complaints regarding interference or attempted
53	53	interference with a physician's independent medical judgment.
54	54	(c) The policies adopted under this section must be approved
55	55	by the medical staff of the hospital.
56	56	(d) For all matters relating to the practice of medicine,
57	57	each physician employed by a hospital under this subchapter shall
58	58	ultimately report to the chief medical officer of the hospital. The
59	59	policies adopted under this section must be approved by the medical
60	60	staff of the hospital. In the event of a conflict between a policy
61	61	adopted by the medical staff and a policy of the hospital, a
62	62	conflict management process shall be jointly developed and
63	63	implemented to resolve any such conflict.
64	64	(e) The chief medical officer shall notify the Texas Medical
65	65	Board that the hospital is employing physicians under this
66	66	subchapter and that the chief medical officer will be the
67	67	hospital's designated contact with the Texas Medical Board. The
68	68	chief medical officer shall immediately report to the Texas Medical
69	69	Board any action or event that the chief medical officer reasonably
70	70	and in good faith believes constitutes a compromise of the
71	71	independent medical judgment of a physician in caring for a
72	72	patient.
73	73	(f) The hospital shall give equal consideration regarding
74	74	the issuance of medical staff membership and privileges to
75	75	physicians employed by the hospital and physicians not employed by
76	76	the hospital.
77	77	(g) A physician employed by a hospital shall retain
78	78	independent medical judgment in providing care to patients at the
79	79	hospital and other health care facilities owned or operated by the
80	80	hospital and may not be disciplined for reasonably advocating for
81	81	patient care.
82	82	(h) If a hospital provides professional liability coverage
83	83	for a physician employed by a hospital, the physician may
84	84	participate in the selection of the professional liability
85	85	coverage, has the right to an independent defense if the physician
86	86	pays for that independent defense, and shall retain the right to
87	87	consent to the settlement of any action or proceeding brought
88	88	against the physician.
89	89	(i) If a physician employed by a hospital enters into an
90	90	employment agreement that includes a covenant not to compete, the
91	91	agreement shall be subject to Section 15.50, Business & Commerce
92	92	Code, and any other applicable provisions.
93	93	SECTION 2. This Act takes effect immediately if it receives
94	94	a vote of two-thirds of all the members elected to each house, as
95	95	provided by Section 39, Article III, Texas Constitution. If this
96	96	Act does not receive the vote necessary for immediate effect, this
97	97	Act takes effect September 1, 2011.