RLV C.S.S.B. 1824 75(R)BILL ANALYSIS


PUBLIC HEALTH
C.S.S.B. 1824
By: Shapleigh (Haggerty)
5-12-97
Committee Report (Substituted)


BACKGROUND 

Currently, the El Paso Hospital District (which operates El Paso's largest
acute care hospital) and the Texas Tech Health Science Center (which
trains medical students and resident physicians on the hospital staff) are
requesting statutory language to formalize the coordinated public health
care delivery system to which the two entities have agreed in principle.   

The two entities have developed this agreement to integrate their
operations and jointly contract with health and managed care providers,
while preserving each entity's identity and autonomy.     

PURPOSE

C.S.S.B. 1824 provides for the formation of an integrated health care
system by the El Paso County hospital district and a medical school.   

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 281C, Health and Safety Code, by adding Section
281.0517, as follows: 

Sec. 281.0517.  INTEGRATED HEALTH CARE SYSTEM. 

Subsection (a) defines "integrated health care system," "provider," and
"medical school."   

Subsection (b) allows the El Paso County Hospital District and a medical
school to establish and operate an integrated health care system.   

Subsection (c) allows an integrated health care system created under this
section, to provide or arrange for comprehensive health care services, to
own, acquire, lease, or contract for all necessary assets; enter into
contracts with providers; provide or enter into a contract with an
individual or business entity; enter into a contract or other agreement
with a business or governmental entity; and enter into a fee-for-service,
capitated, or risk-sharing health care service arrangement. 

Subsection (d) provides that an integrated health care system is a unit of
local government and subject to certain statutory law as specified in this
subsection. 

Subsection (e) allows an integrated health care system created under this
section, notwithstanding Subsection (d)(1)(A), to hold a closed meeting to
deliberate certain issues as specified in this subsection. 

Subsection (f) provides that information relating to certain issues as
specified in this subsection is confidential and not subject to
disclosure, notwithstanding Subsection (d)(1)(B).   
 Subsection (g) requires an integrated health care system created under
this section, subject to certain requirements and limitations, to make
reasonable efforts to include in its provider group community providers
other than the medical school and a hospital of the El Paso County
Hospital District.    

SECTION 2. Effective date:  September 1, 1997.

SECTION 3. Emergency clause.  


COMPARISON OF ORIGINAL TO SUBSTITUTE

SECTION 1.  Amends Section 281.0517, Health and Safety Code, to limit the
definition for "medical school" to Texas Tech Health Science Center.
Specifies the El Paso County Hospital District as an entity allowed to
form an integrated health care system.  Adds the word "management" to
administrative services.  Adds Chapter 262, Local Government Code,
regarding county competitive bidding requirements.  Requires an integrated
health care system to recite in its Articles of Incorporation that it is
created under Section 281.0517.