By: Hughes S.B. No. 833
(In the Senate - Filed February 10, 2017; February 27, 2017,
read first time and referred to Committee on Health & Human
Services; May 1, 2017, reported adversely, with favorable
Committee Substitute by the following vote: Yeas 9, Nays 0;
May 1, 2017, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 833 By: Perry
A BILL TO BE ENTITLED
AN ACT
relating to the regulation of certain health organizations
certified by the Texas Medical Board; providing an administrative
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 162.003, Occupations Code, is amended to
read as follows:
Sec. 162.003. REFUSAL TO CERTIFY; REVOCATION; PENALTY. On
a determination that a health organization commits a violation of
this subtitle or is established, organized, or operated in
violation of or with the intent to violate this subtitle, the board
may:
(1) refuse to certify the health organization on
application for certification by the organization under Section
162.001;
(2) revoke a certification made under Section 162.001
to that organization; or
(3) impose an administrative penalty against the
health organization under Subchapter A, Chapter 165.
SECTION 2. Subchapter A, Chapter 162, Occupations Code, is
amended by adding Sections 162.004 and 162.005 to read as follows:
Sec. 162.004. PROCEDURES FOR AND DISPOSITION OF COMPLAINTS
AGAINST NONPROFIT HEALTH CORPORATIONS. (a) The board shall accept
and process complaints against a health organization certified
under Section 162.001(b) for alleged violations of this subchapter
or any other provision of this subtitle applicable to a health
organization in the same manner as provided under Subchapter B,
Chapter 154, and the rules adopted under that subchapter, including
the requirements to:
(1) maintain a system to promptly and efficiently act
on complaints filed with the board;
(2) ensure that a complaint is not dismissed without
appropriate consideration; and
(3) establish methods by which physicians employed by
a health organization are notified of the name, mailing address,
and telephone number of the board for the purpose of directing
complaints under this section to the board.
(b) Each complaint, adverse report, investigation file,
other investigation report, and other investigative information in
the possession of or received or gathered by the board or the
board's employees or agents relating to a health organization
certified under Section 162.001(b) is privileged and confidential
and is not subject to discovery, subpoena, or other means of legal
compulsion for release to anyone other than the board or the board's
employees or agents involved in the investigation or discipline of
a health organization certified under Section 162.001(b).
(c) The board may dispose of a complaint or resolve the
investigation of a complaint under this section in a manner
provided under Subchapter A, Chapter 164, to the extent the board
determines the provisions of that subchapter can be made applicable
to a health organization certified under Section 162.001.
(d) The board may adopt rules as necessary to implement this
section.
Sec. 162.005. RETALIATION PROHIBITED. (a) In this
section, "nonprofit health corporation" means a health
organization certified under Section 162.001(b).
(b) A nonprofit health corporation may not, as applicable,
terminate, demote, retaliate against, discipline, discriminate
against, or otherwise penalize a person, a person's family member,
or a person's partner because the person:
(1) files a complaint under Section 162.004;
(2) reports in good faith an act or omission that the
person reasonably believes is a violation or attempted violation of
applicable state or federal law, including rules adopted under
state or federal law, to, as appropriate:
(A) the nonprofit health corporation;
(B) a regulatory agency; or
(C) a law enforcement authority;
(3) initiates or cooperates in an investigation or
proceeding of a regulatory agency or law enforcement authority
relating to care or services provided by, or policies of, the
nonprofit health corporation; or
(4) communicates to a patient information regarding
medically appropriate health care.
(c) A nonprofit health corporation may not prohibit,
restrict, or discourage a person from taking any action described
by Subsection (b).
(d) A person who makes a report under Subsection (b)(2) is
immune from civil liability for a report made in good faith.
(e) An employment contract between a nonprofit health
corporation and a physician must contain a provision requiring the
nonprofit health corporation to comply with the requirements of
this section.
SECTION 3. Section 162.003, Occupations Code, as amended by
this Act, and Section 162.004, Occupations Code, as added by this
Act, apply only to a violation by a health organization that occurs
on or after the effective date of this Act. A violation that occurs
before the effective date of this Act is governed by the law in
effect on the date the violation occurred, and the former law is
continued in effect for that purpose.
SECTION 4. Section 162.005, Occupations Code, as added by
this Act, applies only to an adverse action that is taken by a
nonprofit health corporation on or after the effective date of this
Act. An adverse action taken before the effective date of this Act
is governed by the law in effect on the date the adverse action was
taken, and the former law is continued in effect for that purpose.
SECTION 5. Section 162.005(e), Occupations Code, as added
by this Act, applies only to a contract entered into on or after the
effective date of this Act.
SECTION 6. This Act takes effect September 1, 2017.
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