By:  Nelson                                            S.B. No. 921
       73R5008 DLF-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to recovery of damages for medical malpractice.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Title 6, Civil Practice and Remedies Code, is
    1-5  amended by adding Chapter 145 to read as follows:
    1-6               CHAPTER 145.  MEDICAL MALPRACTICE CLAIMS
    1-7                   SUBCHAPTER A.  GENERAL PROVISIONS
    1-8        Sec. 145.001.  DEFINITIONS.  In this chapter:
    1-9              (1)  "Claimant" means a party making a medical
   1-10  malpractice claim.
   1-11              (2)  "Collateral source benefit" means a benefit paid
   1-12  or payable to or on behalf of a claimant under:
   1-13                    (A)  the Social Security Act (42 U.S.C. 301 et
   1-14  seq.);
   1-15                    (B)  a state or federal income replacement,
   1-16  disability, workers' compensation, or other law that provides
   1-17  partial or full income replacement;
   1-18                    (C)  any insurance policy, including:
   1-19                          (i)  an accident, health, or sickness
   1-20  insurance policy;
   1-21                          (ii)  a disability insurance policy;
   1-22                          (iii)  a property or casualty insurance
   1-23  policy, including a motor vehicle or homeowners' insurance policy;
   1-24  and
    2-1                          (iv)  a life insurance policy;
    2-2                    (D)  an agreement under which a person, including
    2-3  a health maintenance organization operating under a certificate of
    2-4  authority issued under the Texas Health Maintenance Organization
    2-5  Act (Chapter 20A, Vernon's Texas Insurance Code), is obligated to
    2-6  provide or pay for medical, hospital, dental, or other health care
    2-7  services or similar benefits; or
    2-8                    (E)  a contractual or voluntary wage continuation
    2-9  plan, provided by an employer or other person, or any other system
   2-10  intended to provide wages during a period of disability.
   2-11              (3)  "Future damages" means damages that will accrue
   2-12  after the judgment is rendered.
   2-13              (4)  "Health care provider" means any person licensed
   2-14  to provide health care as a registered nurse, hospital, dentist,
   2-15  podiatrist, pharmacist, or nursing home, or an officer, employee,
   2-16  or agent of the licensed person.
   2-17              (5)  "Medical malpractice claim" means a claim,
   2-18  including a counterclaim, cross-claim, or third party claim,
   2-19  against a health care provider alleging a negligent act or omission
   2-20  in the diagnosis, care, or treatment of a patient and alleging that
   2-21  injury to or death of the patient resulted from the act.
   2-22              (6)  "Past damages" means damages that have accrued at
   2-23  the time the judgment is rendered.
   2-24              (7)  "Respondent" means a party against whom a claimant
   2-25  makes a claim.
   2-26        Sec. 145.002.  SCOPE OF CHAPTER.  This chapter applies only
   2-27  to a medical malpractice claim, without regard to whether the claim
    3-1  is based on tort or contract principles.
    3-2        Sec. 145.003.  NOTICE OF CLAIM.  (a)  Not later than the 60th
    3-3  day before a medical malpractice claim is filed, the claimant shall
    3-4  mail or deliver written notice of the claim to each health care
    3-5  provider named in the action.  If notice under this subsection is
    3-6  mailed, it shall be sent by certified mail, return receipt
    3-7  requested.
    3-8        (b)  At the time the claimant files the claim, the claimant
    3-9  shall attach an affidavit stating that the claimant has complied
   3-10  with the requirements of this section.  The court may require
   3-11  additional information to determine whether the requirements of
   3-12  this section have been satisfied.
   3-13        (c)  The claimant must file the action not later than the
   3-14  later of:
   3-15              (1)  the date the applicable statute of limitations
   3-16  expires; or
   3-17              (2)  the 75th day after the date on which the notice is
   3-18  mailed or delivered under this section.
   3-19        (d)  The extension of the time to file the action under
   3-20  Subsection (c)(2) applies to any party or potential party to the
   3-21  action.
   3-22        Sec. 145.004.  PLEADING NOT TO STATE DAMAGE AMOUNT; SPECIAL
   3-23  EXCEPTION.  (a)  A medical malpractice claim may not specify an
   3-24  amount of money claimed as damages.
   3-25        (b)  The respondent may file a special exception to the claim
   3-26  asserting the action is not within the court's jurisdiction.  If a
   3-27  special exception under this subsection is filed, the claimant
    4-1  shall inform the court and the defendant in writing of the total
    4-2  amount of money claimed as damages.
    4-3        (c)  This section does not prevent a party from mentioning
    4-4  the amount of money claimed as damages in examining prospective
    4-5  jurors on voir dire or in argument to the court or the jury.
    4-6                    SUBCHAPTER B.  DAMAGES FINDINGS
    4-7        Sec. 145.021.  SPECIAL DAMAGES FINDINGS REQUIRED.  If a trier
    4-8  of fact awards damages in an action subject to this chapter, the
    4-9  trier of fact shall make separate findings for each claimant
   4-10  specifying:
   4-11              (1)  the amount of past damages for:
   4-12                    (A)  medical and other health care costs;
   4-13                    (B)  lost earnings;
   4-14                    (C)  economic loss other than the costs of
   4-15  medical or other health care and lost earnings; and
   4-16                    (D)  noneconomic loss; and
   4-17              (2)  the amount of future damages for:
   4-18                    (A)  medical and other health care costs;
   4-19                    (B)  loss of earning capacity;
   4-20                    (C)  economic loss other than the costs of
   4-21  medical or other health care and loss of earning capacity; and
   4-22                    (D)  noneconomic loss.
   4-23   SUBCHAPTER C.  REDUCTION IN AWARD FOR COLLATERAL SOURCE BENEFITS
   4-24        Sec. 145.031.  REDUCTION IN AWARD OF DAMAGES.  After a
   4-25  judgment has been rendered in a medical malpractice claim, the
   4-26  court shall:
   4-27              (1)  reduce the amount of any award of damages for
    5-1  economic loss by the total amount of collateral source benefits
    5-2  paid or payable to the claimant to compensate the claimant for the
    5-3  injury or death; and
    5-4              (2)  increase the amount of the award by any premium
    5-5  paid or payable by the claimant to secure the right to the
    5-6  collateral source benefit.
    5-7        Sec. 145.032.  EVIDENCE.   (a)  After the judgment has been
    5-8  rendered, the court may hear testimony and receive other evidence
    5-9  as to the amount of collateral source benefits paid to the claimant
   5-10  and the amount of premium paid or payable by the claimant.
   5-11        (b)  This subchapter does not authorize the introduction of
   5-12  evidence relating to the existence or amount of collateral source
   5-13  benefits before a judgment has been rendered in an action.
   5-14        Sec. 145.033.  RIGHT OF SUBROGATION NOT CREATED.  This
   5-15  subchapter does not entitle a person providing a collateral source
   5-16  benefit to a claimant to recover the amount of the benefit from a
   5-17  respondent in an action subject to this chapter.
   5-18               SUBCHAPTER D.  PAYMENT FOR FUTURE LOSSES
   5-19        Sec. 145.041.  SCOPE OF SUBCHAPTER.  This subchapter applies
   5-20  only if the total award of future damages in an action subject to
   5-21  this chapter against all respondents exceeds $100,000.
   5-22        Sec. 145.042.  PERIODIC PAYMENT.  (a)  The court shall order
   5-23  future damages awarded in a medical malpractice claim to be paid in
   5-24  periodic installments, in the amounts, and over the period of time
   5-25  determined by the judge.
   5-26        (b)  The total amount paid may not exceed the amount of the
   5-27  award for future damages specified in the findings of the trier of
    6-1  fact, as reduced under Subchapter C.
    6-2        (c)  Payments for future damages for medical and other health
    6-3  care costs, for economic loss other than the costs of medical or
    6-4  other health care and loss of earning capacity, and for noneconomic
    6-5  loss terminate on the death of the claimant.
    6-6        (d)  The total amount of payments for future damages for loss
    6-7  of earning capacity owed but not yet paid to the claimant at the
    6-8  time of the claimant's death shall be paid to the estate of the
    6-9  claimant in a lump-sum amount based on the present discounted value
   6-10  of the total as determined by a court.
   6-11        SECTION 2.  This Act takes effect September 1, 1993, and
   6-12  applies only to a cause of action that accrues on or after that
   6-13  date.  An action that accrued before the effective date of this Act
   6-14  is governed by the law in effect at the time the action accrued,
   6-15  and that law is continued in effect for that purpose.
   6-16        SECTION 3.  The importance of this legislation and the
   6-17  crowded condition of the calendars in both houses create an
   6-18  emergency and an imperative public necessity that the
   6-19  constitutional rule requiring bills to be read on three several
   6-20  days in each house be suspended, and this rule is hereby suspended.