Bill Text: TX SB894 | 2011-2012 | 82nd Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to employment of physicians by certain hospitals.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-12 - Effective immediately [SB894 Detail]
Download: Texas-2011-SB894-Introduced.html
Bill Title: Relating to employment of physicians by certain hospitals.
Spectrum: Bipartisan Bill
Status: (Passed) 2011-05-12 - Effective immediately [SB894 Detail]
Download: Texas-2011-SB894-Introduced.html
82R2254 YDB-F | ||
By: Duncan, Seliger, West | S.B. No. 894 |
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relating to the employment of physicians by certain hospitals. | ||
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 | ||
Sec. 311.061. APPLICABILITY AND CONSTRUCTION OF | ||
SUBCHAPTER. (a) This subchapter applies only to a hospital that | ||
employs or seeks to employ a physician and that: | ||
(1) is designated as a critical access hospital under | ||
the authority of and in compliance with 42 U.S.C. Section 1395i-4; | ||
(2) is a sole community hospital, as that term is | ||
defined by 42 U.S.C. Section 1395ww(d)(5)(D)(iii); or | ||
(3) is located in a county with a population of 50,000 | ||
or less. | ||
(b) 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. | ||
Sec. 311.062. EMPLOYMENT OF PHYSICIANS PERMITTED; CONTRACT | ||
RESTRICTIONS. (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 term of an employment contract entered into under | ||
this section may not exceed four years. | ||
(c) A hospital that is located in a county with a population | ||
of 50,000 or less and that is not a hospital described by Section | ||
311.061(a)(1) or (2) may continue to employ any physicians employed | ||
by the hospital on or before the date of release of a federal | ||
decennial census that shows the county's population exceeds 50,000. | ||
The hospital may not employ a new physician after that date. | ||
Sec. 311.063. HOSPITAL DUTIES AND 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; and | ||
(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. | ||
(b) 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. | ||
(c) The policies adopted under this section must be approved | ||
by the chief medical officer of the hospital. | ||
(d) 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 of the hospital. | ||
Sec. 311.064. CONTRACTUAL WAIVER OR OTHER ACTION | ||
PROHIBITED. The requirements of this subchapter may not be voided | ||
or waived by contract. | ||
SECTION 2. Section 162.001, Occupations Code, is amended by | ||
adding Subsection (d) to read as follows: | ||
(d) The board shall certify a health organization to employ | ||
physicians licensed by the board if the organization: | ||
(1) is designated as a critical access hospital under | ||
the authority of and in compliance with 42 U.S.C. Section 1395i-4; | ||
(2) is a sole community hospital, as that term is | ||
defined by 42 U.S.C. Section 1395ww(d)(5)(D)(iii); or | ||
(3) is a hospital located in a county with a population | ||
of 50,000 or less. | ||
SECTION 3. Subchapter A, Chapter 162, Occupations Code, is | ||
amended by adding Section 162.004 to read as follows: | ||
Sec. 162.004. EMPLOYER AND EMPLOYEE REQUIREMENTS. The | ||
following requirements apply to a health organization certified | ||
under Section 162.001(d) that employs physicians: | ||
(1) a physician shall retain independent medical | ||
judgment in providing care to patients at the organization and may | ||
not be penalized for reasonably advocating for patient care; and | ||
(2) a physician who has privileges at the organization | ||
and is employed by the hospital and a physician who is not employed | ||
by the hospital must be given equal consideration and treatment in | ||
the creation and execution of all medical staff bylaw provisions | ||
regardless of the physician's employer. | ||
SECTION 4. 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. |