SRC-CDH C.S.S.B. 1824 75(R)BILL ANALYSIS Senate Research CenterC.S.S.B. 1824 By: Shapleigh Health & Human Services 4-10-97 Committee Report (Substituted) DIGEST Currently, the El Paso Hospital District, which operates El Paso's largest acute care hospital, and the Texas Tech Health and 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 which the two entities have agreed to in principle. The two entities have developed an agreement to integrate their operations and jointly contract with health and managed care providers, while preserving each entity's identity and autonomy. This legislation authorizes the El Paso Hospital District and the Texas Tech Health Science Center in El Paso to create a new integrated organization to improve health care delivery to the citizens of El Paso by strengthening the ability of both parties to carry out their respective missions and encouraging participation by providers currently outside the two institutions. PURPOSE As proposed, C.S.S.B. 1824 provides for the formation of an integrated health care system by a hospital district and a medical school. 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 281.0517, as follows: Sec. 281.0517. INTEGRATED HEALTH CARE SYSTEM. Defines "integrated health care system," "provider," and "medical school." Authorizes a hospital district and a medical school to establish and operate an integrated health care system. Authorizes 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. Provides that an integrated health care system is a unit of local government and subject to certain statutory law. Authorizes an integrated health care system created under this section, notwithstanding Subsection (d)(1)(A), to hold a closed meeting to deliberate certain issues. Provides that information relating to certain issues is confidential and not subject to disclosure, notwithstanding Subsection (d)(1)(B). 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 district hospital and the medical school. SECTION 2. Effective date: September 1, 1997. SECTION 3. Emergency clause. SUMMARY OF COMMITTEE CHANGES Amends the relating clause to replace the term "public medical school" with "medical school." SECTION 1. Amends Section 281.0517, Health and Safety Code, to replace all references to "public medical school" with "medical school." Deletes the definition for "public medical school" and adds the definition for "medical school." Replaces all references to "an integrated health care system" with "an integrated health care system created under this section." Requires an integrated health care system to make reasonable efforts to include in its provider group community providers other than the district hospital and the medical school.