SRC-MAX H.B. 1567 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 1567
By: Van de Putte (Madla)
State Affairs
4-24-97
Engrossed


DIGEST 

Currently, changes in the delivery of heath care caused by the move to
managed care has required hospital districts to adapt their approach to
health services.  Traditionally, hospital districts have employed a
budgetary system in which over 50 percent of a hospital district's budget
is supported by patient care revenue.  There are concerns that loss of
this source of support will adversely affect the ability of hospital
districts and the graduate medical training programs affiliated with these
hospital districts to survive.  This bill authorizes hospital districts to
establish charitable organizations to carry out hospital district purposes
in a consistent manner with current hospital district methods, rules, and
immunities.  

PURPOSE

As proposed, H.B. 1567 establishes provisions for charitable organizations
created by certain hospital districts. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 281C, Health and Safety Code, by adding Section
281.0565, as follows: 

Sec.  281.0565.  CHARITABLE ORGANIZATIONS.  Defines "charitable
organization." Authorizes a hospital district to create a charitable
organization to facilitate the management of a district health care
program by providing or arranging certain services.  Provides that a
charitable organization is a unit of local government for purposes of
Chapter 101, Civil Practice and Remedies Code. 

SECTION 2. Effective date:  September 1, 1997.
  Makes application of this Act retrospective.

SECTION 3. Emergency clause.