Bill Text: TX SB761 | 2011-2012 | 82nd Legislature | Enrolled

Texas Senate Bill 761 (Prior Session Legislation)

Bill Title: Relating to the employment of physicians by certain hospitals associated with nonprofit fraternal organizations.

Sponsorship: Bipartisan Bill

Status: (Passed) 2011-06-17 - Effective immediately [SB761 Detail]

Download: Texas-2011-SB761-Enrolled.html



	S.B. No. 761




	AN ACT
	relating to the employment of physicians by certain hospitals
	associated with nonprofit fraternal organizations.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1. Chapter 311, Health and Safety Code, is amended
	by adding Subchapter E to read as follows:
	SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS
	ASSOCIATED WITH NONPROFIT FRATERNAL ORGANIZATIONS
	Sec. 311.061. APPLICABILITY OF SUBCHAPTER. This subchapter
	applies only to a hospital that employs or seeks to employ a
	physician, that primarily provides medical care to children younger
	than 18 years of age, and that:
	(1) is owned or operated by a nonprofit fraternal
	organization; or
	(2) has a governing body the majority of members of
	which belong to a nonprofit fraternal organization.
	Sec. 311.062. EMPLOYMENT OF PHYSICIANS PERMITTED. (a) A
	hospital may employ a physician and retain all or part of the
	professional income generated by the physician for medical services
	provided at the hospital if the hospital satisfies the requirements
	of this subchapter.
	(b) The billing and receipt of third-party reimbursement
	for medical care at a hospital does not affect the authority granted
	to the hospital under this section.
	Sec. 311.063. DUTIES AND HOSPITAL POLICIES. (a) A
	hospital that employs physicians under this subchapter shall:
	(1) appoint a chief medical officer, who may be a
	member of the hospital's medical staff;
	(2) adopt, maintain, and enforce policies to ensure
	that a physician employed by the hospital exercises the physician's
	independent medical judgment in providing care to patients at the
	hospital; and
	(3) designate the chief medical officer as the contact
	for the Texas Medical Board for all matters relating to complaints
	regarding interference or attempted interference with a
	physician's independent medical judgment or any other matter under
	this section.
	(b) The person appointed as chief medical officer shall
	report the person's appointment to the Texas Medical Board.
	(c) The policies adopted under this section must include:
	(1) policies relating to:
	(A) credentialing;
	(B) quality assurance;
	(C) utilization review;
	(D) peer review; 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.
	(d) The policies adopted under this section must be approved
	by the chief medical officer.
	(e) In the event of a conflict between a policy approved by
	the chief medical officer and any other policy of the hospital, a
	conflict management process shall be jointly developed and
	implemented to resolve the conflict.
	(f) For all matters relating to the practice of medicine,
	each physician employed by a hospital under this subchapter shall
	ultimately report to the chief medical officer.
	(g) 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.
	Sec. 311.064. CONSTRUCTION OF SUBCHAPTER. This subchapter
	may not be construed as authorizing the governing body of a hospital
	to supervise or control the practice of medicine as prohibited
	under Subtitle B, Title 3, Occupations Code.
	SECTION 2. 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.





	______________________________	______________________________
	President of the Senate	Speaker of the House

	I hereby certify that S.B. No. 761 passed the Senate on
	March 24, 2011, by the following vote: Yeas 31, Nays 0; and that
	the Senate concurred in House amendment on May 26, 2011, by the
	following vote: Yeas 31, Nays 0.


	______________________________
	Secretary of the Senate

	I hereby certify that S.B. No. 761 passed the House, with
	amendment, on May 20, 2011, by the following vote: Yeas 146,
	Nays 0, three present not voting.


	______________________________
	Chief Clerk of the House



	Approved:

	______________________________
	Date


	______________________________
	Governor