Texas Senate Bill SB934

Texas 2017 - 85th Regular

Caption

Relating to health care liability insurance for certain long-term care facilities.

Impact

The inclusion of a minimum insurance coverage requirement, which is set at $300,000 per occurrence and $1 million in aggregate, is significant. Such provisions aim to improve the financial stability of long-term care facilities while also providing a safety net for individuals in case of liabilities arising from healthcare services. Additionally, it allows for insurance costs to be reimbursable under the state Medicaid program, potentially incentivizing facilities to comply with the new regulations.

Summary

SB934 addresses health care liability insurance requirements specifically for long-term care facilities in Texas. The bill mandates that these institutions maintain professional liability insurance to cover claims against them or their employees regarding health care liability. This aims to ensure that long-term care facilities are adequately insured to protect against potential liabilities, fostering a more secure environment for both patients and providers.

Contention

While the bill is primarily aimed at enhancing patient safety and institutional accountability, there may be concerns surrounding the financial burden it imposes on long-term care facilities, particularly those owned by governmental units. Critics may argue that the increased cost of maintaining such insurance could detract from resources available for patient care and operational expenditures, leading to potential adverse effects on service quality. The requirement for management companies to also carry professional liability insurance could further complicate financial management for facilities reliant on third-party operators.