BILL ANALYSIS


                                                     C.S.S.B. 667
                                                        By: Madla
                                        Health and Human Services
                                                         04-27-95
                                   Committee Report (Substituted)
BACKGROUND

In order to receive appropriate health care, a patient must often
share highly personal information with the 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 increasingly threaten 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.

PURPOSE

As proposed, C.S.S.B. 667 sets forth guidelines for the disclosure
of certain health care information by a provider.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the Texas State Board of Medical Examiners under SECTION 6
(Section 5.08(o), Article 4495b, V.T.C.S.) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 241, Health and Safety Code, by adding
Subchapter G, 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) Makes a disclosure authorization to a hospital valid
       only if certain requirements are met.
       
       (c) Makes a disclosure authorization valid until the 90th
       day after the date it is signed, unless it provides
       otherwise or is revoked.
       
       (d) Authorizes a patient or legally authorized
       representative to revoke a disclosure authorization to a
       hospital at any time, except as provided by Subsection (e). 
       Makes a revocation 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 Subsection (c) to the extent
       the fee is prohibited under Chapter 161M.
       
       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.
     
     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.
       
       (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), 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), Article 4495b,
V.T.C.S., as follows:

     (g) Declares that exceptions to confidentiality or privilege
     in court or administrative proceedings exist when the
     patient's physical or mental condition is relevant to the
     execution of a will, when the information is relevant to a
     proceeding under Subsection (l) of this section, to satisfy a
     request for medical records of a deceased or incompetent
     person under Section 4.01(e), Article 4590i, V.T.C.S., or to
     a court or a party to an action pursuant to a court order or
     court subpoena.
     
     (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 to health care personnel of a penal or
     other custodial institution in which the patient is detained
     if the disclosure os for the sole purpose of providing health
     care to the patient.
     
     
     SECTION 4.     Amends Section 5.08(j)(2), Article 4495b, V.T.C.S., by
prohibiting 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), 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 fees for
the provision of information.  Deletes the definition of "medical
records."

SECTION 6. Amends Section 5.08, 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 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.
     
     SECTION 8.     Amends Chapter 611, Health and Safety Code, by adding
Sections 611.006-611.008, 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). 
     Provides 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.  Provides 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 (c) to the
       extent the fee is prohibited under Chapter 161M.
       
       SECTION 9.   Provides 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.    Makes application of this Act prospective beginning
January 1, 1996.

SECTION 11.    Effective date: September 1, 1995.

SECTION 12.    Emergency clause.