BILL ANALYSIS



S.B. 667
By: Madla (Janek)
05-09-95
Committee Report (Unamended)


BACKGROUND

In order to receive appropriate health care, a patient must often
share highly personal information with a health care provider. In
recent years, the emergence of third-party payment plans, the use
of healthcare information for non-healthcare purposes, and the
exponential increase in the use of computers and automated
information systems threatens traditional confidentiality
protections. Current law affords some protection for physician
offices, mental health, and mental retardation records, but no
similar legislation exists for hospital medical records.

Additionally, obtaining medical records can be an expensive task
that often drags on for an extensive period of time. Current law
requires the records to be provided at "reasonable" costs, yet
instances exist in which individuals have paid hundreds of dollars
for a couple of pages of information. The prices charged for
duplication and the waiting period add to the costs of litigation
when records are being sought in relation to a court case.

PURPOSE

S.B. 667 would set forth guidelines for the disclosure of certain
health care information by a provider, and would establish limits
on the amount that can be charged for reproducing a document.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill expressly grants
additional rulemaking authority to  the Texas State Board of
Medical Examiners under SECTION 6 (Section 5.08(o), Medical
Practice Act (Article 4495b, Vernon's Texas Civil Statutes)).

SECTION BY SECTION ANALYSIS

SECTION 1. Adds Subchapter G, Chapter 241, Health and Safety Code,
as follows:

      SUBCHAPTER G.  DISCLOSURE OF HEALTH CARE INFORMATION.

     Sec. 241.151.  DEFINITIONS.  Defines "health care
     information," "health care provider," "institutional review
     board," and "legally authorized representative."
     Sec. 241.152.  WRITTEN AUTHORIZATION FOR DISCLOSURE OF HEALTH
     CARE INFORMATION.  (a) Prohibits a hospital, or agent or
     employee of a hospital, from disclosing health care
     information about a patient without the written authorization
     of the patient or the patient's legally authorized
     representative, except as authorized by Section 241.153.
     
     (b) States that a disclosure authorization to a hospital is
       valid only if certain requirements are met.
       
       (c) States that a disclosure authorization is valid until
       the 90th day after the date it is signed, unless it provides
       otherwise or is revoked.
              
       (d) Allows a patient or legally authorized representative to
       revoke a disclosure authorization to a hospital at any time,
       except as provided by Subsection (e). States that a
       revocation is valid only if it is dated later than the date
       on the original authorization and is signed by the patient
       or authorized representative.
       
       (e) Prohibits a patient or a legally authorized
       representative from revoking a disclosure that is required
       for purposes of making payment to the hospital for health
       care provided to the patient.
       
       (f) Prohibits a patient from maintaining an action against
       a hospital for a disclosure made in good-faith reliance on
       an authorization, if the hospital's medical record
       department did not have notice that the authorization was
       revoked.
       
       (g) Prohibits a hospital from charging a fee for providing
       health care information under Section 241.154(b) to the
       extent the fee is prohibited under Chapter 161, Subchapter
       M.
       
       Sec. 241.153.  DISCLOSURE WITHOUT WRITTEN AUTHORIZATION. 
     Authorizes a patient's health care information to be disclosed
     without the patient's authorization, if the disclosure is made
     under specific circumstances outlined in the section.
     
     Sec. 241.154.  AUTHORIZED REQUEST.  (a) Requires a hospital,
     not later than the 15th day after receipt of a request, to
     make information available for examination and provide a copy
     to the authorized requestor, if requested, or inform the
     requestor if the information does not exist or cannot be
     found.
     
     (b) Authorizes the hospital to charge a reasonable fee for
       providing the health care information.  Declares that the
       hospital is not required to permit examination or copying
       until the fee is paid, unless there is a medical emergency. 
       Prohibits the fee from exceeding a certain sum, which is
       based on several, specified factors.
       
       (c) Requires the fee for providing health care information
       as specified in this section, effective September 1, 1996,
       and annually thereafter, to be adjusted accordingly based on
       certain changes to the consumer price index.
       
       Sec. 241.155.  SAFEGUARDS FOR SECURITY OF HEALTH CARE
     INFORMATION.  Requires a hospital to adopt and implement
     reasonable safeguards for the security of all health care
     information it maintains.
     
     Sec. 241.156.  PATIENT REMEDIES.  (a) Authorizes a person
     aggrieved by a violation of this subchapter relating to the
     unauthorized release of confidential information to bring an
     action for appropriate injunctive relief and damages resulting
     from the release.
     
     (b) Requires an action under Subsection (a) to be brought in
       the district court of the county in which the patient
       resides; the district court of the county in which the
       patient's legally authorized representative resides, if the
       patient is deceased; or the district court of Travis County,
       if the patient or a legally authorized representative is not
       a resident of this state.
       
       (c) Declares that a petition for injunctive relief under
       Subsection (a)(1) takes precedence over all civil matters on
       the court docket, except those matters to which equal
       precedence on the docket is granted by law.
       
     SECTION 2.     Amends Section 1.03(a), Medical Practice Act (Article
4495b, V.T.C.S.), by adding Subdivisions (17) and (18), to define
"legally authorized representative" and "medical records."

SECTION 3. Amends Sections 5.08(g) and (h), Medical Practice Act
(Article 4495b, V.T.C.S.), as follows:

     (g) Declares that exceptions to confidentiality or privilege
     in court or administrative proceedings exist under specified
     conditions, and adds the following: Subsection (7) adds that
     an exception to an involuntary civil commitment proceeding,
     proceeding for court-ordered treatment, or probable cause
     hearing falls under specified chapters of the Health and
     Safety Code, rather than certain codes in V.T.C.S, reference
     to which are is deleted; and Subsections (8), (9), (11) and
     (12) add certain conditions to this section on the exceptions
     to confidentiality or privilege in court or administrative
     proceedings.
     
     (h) Declares that exceptions to the privilege of
     confidentiality, in other than court or administrative
     proceedings, allowing disclosure of confidential information
     by a physician, exist only to specified persons, and adds
     Subsection (9), which specifies additional persons. 
     
     SECTION 4.     Amends Section 5.08(j)(2), Medical Practice Act (Article
4495b, V.T.C.S.), to prohibit a patient from maintaining an action
against a physician for disclosure made in good-faith, if the
physician did not have written notice that the authorization was
revoked.

SECTION 5. Amends Section 5.08(k), Medical Practice Act (Article
4495b, V.T.C.S.), to require a physician to furnish copies of
medical records requested, including records received from a
physician or other health care provider involved in the care or
treatment of the patient, pursuant to a written request under
Subsection (j) of this section. Authorizes the physician to delete
confidential information about another patient or family member of
the patient who has not consented to the release. Deletes a
provision regarding required fees for the provision of information,
and deletes the definition of "medical records."

SECTION 6. Amends Section 5.08, Medical Practice Act, (Article
4495b, V.T.C.S.), by adding Subsections (o) and (p), as follows:

     (o) Authorizes the physician to charge a reasonable fee for
     copying records.  Provides that the physician is not required
     to permit access to the records until payment of the fee,
     unless there is a medical emergency. Requires the Texas State
     Board of Medical Examiners, by rule, to prescribe what
     constitute  reasonable fees.
     
     (p) Prohibits a physician from charging a fee for copying
     medical records under Subsection (o) to the extent that the
     fee is prohibited under Chapter 161M, Health and Safety Code.
     
     SECTION 7.     Amends Section 611.004, Health and Safety Code, as
follows:

     Sec. 611.004.  New heading: AUTHORIZES DISCLOSURE OF
     CONFIDENTIAL INFORMATION OTHER THAN IN JUDICIAL OR
     ADMINISTRATIVE PROCEEDING.  Authorizes a professional to
     disclose confidential information only to specified persons or
     under specified conditions, and adds the following: to health
     care personnel of a penal or other custodial institution in
     which the patient is detained if the disclosure is for the
     sole purpose of providing health care to the patient; to an
     employee or agent of the professional who required mental
     health care information to provide mental health care services
     or in complying with statutory, licensing, or accreditation
     requirements under certain circumstances; or to satisfy a
     request for medical records of a deceased or incompetent
     person pursuant to Section 4.01(e), Article 4690i, V.T.C.S.
     Deletes the condition of in a civil action or in a criminal
     case or criminal law matter as otherwise allowed by law or
     rule.
     
     SECTION 8.     Adds Sections 611.006-611.008 to Chapter 611, Health and
Safety Code, as follows:

     Sec. 611.006.  AUTHORIZED DISCLOSURE OF CONFIDENTIAL
     INFORMATION IN JUDICIAL OR ADMINISTRATIVE PROCEEDING.  (a) 
     Sets forth conditions under which a professional is authorized
     to disclose confidential information in a judicial or
     administrative proceeding.
     
     (b) Requires the court, on granting an order, to impose
       appropriate safeguards against unauthorized disclosure.
       
       Sec. 611.007.  REVOCATION OF CONSENT.  (a) Authorizes a
     patient or authorized representative to revoke a disclosure
     consent at any time, except as provided by Subsection (b).
     States that a revocation is valid only if it is written,
     dated, and signed by the patient or representative.  
     
     (b) Prohibits a patient from revoking a disclosure that is
       required for making payment for services provided to the
       patient.
     (c) Prohibits a patient from maintaining an action against
       a professional for a disclosure made in good faith, if the
       professional did not have written notice of the revocation.
       
       Sec. 611.008.  REQUEST BY PATIENT.  (a) Requires a
     professional, not later than the 15th day after receiving a
     request from a patient to examine the patient's records, to
     make the information available and provide a copy, if
     requested, and inform the patient if the information does not
     exist or cannot be found.
     
     (b) Authorizes a professional to charge a reasonable fee for
       copying information.  States that the professional is not
       required to permit access to information until payment of
       the fee, unless there is a medical emergency.  
       
       (c) Prohibits a professional from charging a fee for copying
       mental health care information under Subsection (b) to the
       extent the fee is prohibited under Chapter 161M.
       
       SECTION 9.   States that Sections 241.152(g) and 611.008(c), Health
and Safety Code, and Section 5.08(p), Article 4495b, V.T.C.S., take
effect only if S.B. 133, 74th Legislature, Regular Session, is
enacted and becomes law. Provides that if S.B. 133 does not become
law, this Act has no effect.

SECTION 10.    States that this Act applies to specified
information on or after January 1, 1996.

SECTION 11.    Effective date: September 1, 1995.

SECTION 12.    Emergency clause.

SUMMARY OF COMMITTEE ACTION 

S.B. 667 was considered by the Public Health Committee in a public
hearing on May 9, 1995.

The following persons testified in favor of the bill:
Chet Brooks, representing self and Smart Corportation.
Teresa Benavidez, representing self and Texas Health Information
Association.
Lance Seach, representing self.
Denny O'Neill, representing self and Medical Interface, Inc.
Carol Taylor, representing Texas Trial Lawyers Assn.
Charles Bailey, representing Texas Hospital Association.
Representative Craig Eiland, representing self.

The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed, by a record vote of
7 AYES, 0 NAYS, 0 PNV, and 2 ABSENT.