88R4409 SRA-F
By: Oliverson H.B. No. 2982
A BILL TO BE ENTITLED
AN ACT
relating to the authorization of certain agreements between
management services organizations and physicians.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle A, Title 5, Business & Commerce Code, is
amended by adding Chapter 74 to read as follows:
CHAPTER 74. MANAGEMENT SERVICES ORGANIZATIONS FOR PHYSICIANS
Sec. 74.001. DEFINITION. In this chapter, "physician"
means an individual licensed to practice medicine in this state.
Sec. 74.002. AGREEMENTS WITH MANAGEMENT SERVICES
ORGANIZATIONS. A physician or group of physicians, whether or not
incorporated, may enter into a written agreement with a management
services organization for management and administrative services.
Sec. 74.003. SERVICES PROVIDED BY MANAGEMENT SERVICES
ORGANIZATIONS. (a) A management services organization, under the
terms of a management services agreement, may provide the following
for a physician or group of physicians:
(1) facilities;
(2) medical supplies and equipment, other than an item
considered a medical device by the United States Food and Drug
Administration;
(3) instruments and supplies other than prescription
drugs;
(4) business, office, and other nonmedical equipment;
(5) repair, maintenance, renovation, or replacement
services for any facility or equipment;
(6) accounting, payroll, bookkeeping, budget,
investment, tax compliance, and similar financial services;
(7) information and information systems and services,
provided that patient records in the systems are owned and freely
accessed by the physician;
(8) billing and collection services for the
physician's fees and charges;
(9) the collection or sale of the physician's accounts
receivable;
(10) advertising, marketing, and public relations
services in compliance with rules adopted by the Texas Medical
Board;
(11) payer and other relevant contract negotiation,
drafting, and similar services;
(12) receptionist, scheduling, messaging, and similar
coordination services;
(13) assistance in obtaining licenses and
registration permits necessary to operate a medical practice that
may be obtained by:
(A) a non-physician; or
(B) a physician, if the Texas Medical Board
approves the method of payment for the license or registration
permit renewal paid by the management services organization;
(14) recruiting, continuing education, training,
legal assistance, and logistical peer review services;
(15) insurance, purchasing, and claims services,
which may include maintaining the physician and the physician's
medical personnel on the same insurance policies and benefit plans
as the management services organization;
(16) consulting, business, and financial planning
services;
(17) establishment of prices to be charged to the
physician's patients for goods and supplies, other than for drugs
or medical devices, that are provided or managed by the management
services organization;
(18) assistance in the collection, analysis, and
submission of quality and patient satisfaction information to
physicians, other providers, regulatory agencies, and
accreditation bodies;
(19) the employment of persons who:
(A) perform management services;
(B) are physicians who perform administrative
and management services but not the practice of medicine;
(C) perform management, administrative,
clerical, receptionist, secretarial, bookkeeping, accounting,
payroll, billing, collection, and other functions; or
(D) are medical or other personnel, provided that
a physician who is present at the practice location that engages in
the practice of medicine at the location has the right to:
(i) control the medically related
procedures, duties, and performance of the medical and other
personnel; and
(ii) suspend for medically related reasons
the medical and other personnel, unless the suspension is contrary
to legal requirements or rules; and
(20) any other nonclinical service that is not
prohibited by Subsection (b).
(b) A management services organization may not:
(1) control or intervene in a physician's practice of
medicine;
(2) employ a physician, either by employment agreement
or by independent contractor agreement, to practice medicine;
(3) dictate or otherwise make final decisions on the
compensation of a physician for the practice of medicine;
(4) control or intervene in a physician's diagnosis,
treatment, correction, change, manipulation, relief, or prevention
of disease, deformity, defect, injury, or other physical condition,
including the prescription, dosage determination, or
administration of a drug, biologic, anesthetic, apparatus, medical
device, or other therapeutic or diagnostic substance or technique;
(5) control or intervene in a physician's selection or
use of a type or quality of medical supply or pharmaceutical to be
used in the practice of medicine;
(6) determine the amount of time a physician may spend
with a patient;
(7) own drugs, unless the drugs are owned in
compliance with applicable state or federal law;
(8) own the medical records of a physician's patients;
(9) own or control medical devices, pharmaceuticals,
or drugs for use in patient treatment by a physician;
(10) dictate or otherwise make final decisions on fees
to be charged by a physician;
(11) mandate compliance with specific professional
standards, protocols, or practice guidelines relating to the
practice of medicine;
(12) place limitations or conditions on patient
communications that are clinical in nature;
(13) require a physician to make referrals in
violation of applicable state law; or
(14) penalize a physician for reporting violations of
a law regulating the practice of medicine.
(c) Notwithstanding Subsection (b)(11), a management
services organization may mandate compliance with legal and other
requirements necessary to practice medicine in this state.
(d) A physician or an entity in which physicians are the
sole owners, shareholders, or partners may perform the activities
described by Subsection (b).
Sec. 74.004. FEES FOR MANAGEMENT SERVICES. A management
services organization may charge a physician or group of physicians
a flat, fair market-based management fee for the provision of
management services.
Sec. 74.005. DISCLOSURE OF CONTRACT. (a) A physician or a
group of physicians that enters into a management services
agreement with a management services organization shall:
(1) make copies of the management services agreement
available for inspection by the Texas Medical Board at the main
office of the physician or group of physicians; and
(2) if the board opens an investigation against the
physician or group of physicians, make available to the board
copies of the management services agreement.
(b) A copy of a management services agreement produced under
this section is governed by Subtitle B, Title 3, Occupations Code,
and is confidential and not subject to disclosure under Chapter
552, Government Code.
SECTION 2. This Act takes effect September 1, 2023.