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.