SRC-MAX S.B. 1396 75(R)BILL ANALYSIS


Senate Research CenterS.B. 1396
By: Lindsay
State Affairs
4-23-97
Committee Report (Amended)


DIGEST 

Currently, it is becoming increasingly difficult for public hospitals to
compete in today's health care market due to certain conditions occurring
in the managed care industry.  These hospitals have traditionally relied
heavily on Medicaid revenues and disproportionate share payments to
maintain their public health care mission.  In today's competitive market,
public hospitals are at odds with private hospitals and HMOs when it comes
to Medicaid.  This bill would exempt the board of directors at a  public
hospital from any open meetings laws, to allow the board members to
discuss rates and services in private.    

PURPOSE

As proposed, S.B. 1396 provides an exemption to a public hospital relating
to the open meetings law. 

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 Section 551.085, Government Code, as follows:

Sec.  551.085.  GOVERNING BOARD OF MUNICIPAL HOSPITAL, HOSPITAL DISTRICT,
OR MUNICIPAL HOSPITAL AUTHORITY.  Provides that this chapter does not
require the board of directors of a municipal hospital, municipal hospital
authority, or hospital district created under general or special law to
conduct an open meeting to deliberate certain matters. 

SECTION 2. Effective date:  September 1, 1997.

SECTION 3. Emergency clause.



SUMMARY OF COMMITTEE CHANGES

Amendment 1.

Page 1, line 7 strike "Board of Directors" and replace with "Governing
Board." 

Page 1, lines 20 and 21, insert "before the hospital publicly announces
the service or product line."