BWH H.B. 2066 75(R)BILL ANALYSIS COUNTY AFFAIRS H.B. 2066 By: Patterson 3-21-97 Committee Report (Unamended) BACKGROUND In order to compete and survive in the changing health care environment, Hopkins County Hospital District needs to be able to establish a non-profit corporation. Following the Texas State Board of Medical Examiners recognition that formation of a 501(A) corporation is in the public interest, many of the hospital district's competitors have already formed such organizations. Hopkins County Hospital District wants that same ability because, as managed care evolves, it will be important that the district be able to join with physicians and other providers in contracting with HMOs or other such organizations for the provision of health care services in Hopkins County. In this manner the district will be able to secure a patient base thereby protecting its future. The changing health care environment has or will put limits on health care spending, and more and more payors including the State are choosing managed care as the preferred delivery system. A 501(A) corporation will serve as the vehicle by which the local hospital and local physicians compete in this environment. This bill will prepare the way for the hospital to compete and survive as the health care system continues to evolve. PURPOSE To allow Hopkins County Hospital District to become a member of a nonprofit corporation or enter into an agreement with a nonprofit corporation. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 43, Acts of the 57th Legislature, 1st Called Session, 1961, by adding Section 6B as follows: Sec. 6B. (a) Gives Hopkins County Hospital District the authority to become a member of a nonprofit corporation or enter into an agreement with a nonprofit corporation to serve the purposes of the district. (1) Provides the district power to appoint one or more members of the board of directors of a nonprofit corporation. (2) Provides that changes in the corporation's articles of incorporation or bylaws or other action must have the consent of the district. (3) Provides that all or a portion of the net assets of a dissolved, merged or consolidated corporation convey to the district. (b) Provides that the hospital district assumes no liability of the nonprofit corporation. (c) Provides that the district's authority to provide funds to the nonprofit corporation is not affected by this section. SECTION 2. Emergency clause.