Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

         By:  Madla                                   S.B. No. 1244

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to the practice of advanced practice nurses and physician

 1-2     assistants in collaborative practice with a physician.

 1-3           SECTION 1.  Subdivision (5)(D), Subsection (d), Section 3.06,

 1-4     Medical Practice Act (Article 4495b, Vernon's Texas Civil Statutes)

 1-5     is amended to read as follows:

 1-6           (D)  Physician supervision shall be adequate if a delegating

 1-7     physician:

 1-8                 (i)  is responsible for the formulation or approval of

 1-9     such physician's orders, standing medical orders, standing

1-10     delegation orders, or other orders or protocols and periodically

1-11     reviews such orders and the services provided patients under such

1-12     orders;

1-13                 (ii)  is on site at least once [a week] every ten

1-14     business days to provide medical direction and consultation.

1-15                 (iii)  receives a daily status report from the

1-16     registered nurse or physician assistant on any problems or

1-17     complications encountered; and

1-18                 (iv)  is available through direct telecommunication for

1-19     consultation, assistance with medical emergencies, or patient

1-20     referral.

1-21           SECTION 2.  Subdivision (5), Subsection (d), Section 3.06,

1-22     Medical Practice Act (Article 4495b, Vernon's Texas Civil

1-23     Statutes), is amended by adding a Paragraph (I) to read as follows:

 2-1           (I)  The Board, for good cause shown, may grant a waiver of

 2-2     one or more of the physician supervision requirements set out in

 2-3     Paragraph (D) of this Subdivision.  In granting the waiver, the

 2-4     Board shall consider:

 2-5                 (i)  the adequacy of the collaborative relationship

 2-6     between the physician and the Advanced Practice Nurse or Physician

 2-7     Assistant;

 2-8                 (ii)  the mechanism to be established to ensure

 2-9     adequate physician supervision and patient care;

2-10                 (iii)  that compliance with the requirements causes

2-11     undue burden without corresponding benefit to patient care; and

2-12                 (iv)  other provisions established by the Board by

2-13     rule.

2-14           The Board may withdraw the waiver after notice and hearing

2-15     and a waiver must be renewed every three years in accordance with

2-16     rules established by the Board.

2-17           SECTION 3.  Subdivision (6)(G)(iii), Subsection (d), Section

2-18     3.06, Medical Practice Act (Article 4495b, Vernon's Texas Civil

2-19     Statutes), is amended to read as follows:

2-20           (iii)  "Primary practice site" means:

2-21                 (a)  the practice location where the physician spends

2-22     the majority of the physician's time;

2-23                 (b)  a licensed hospital, a licensed long-term care

2-24     facility, and a licensed adult care center where both the physician

2-25     and the Physician Assistant or Advanced Practice Nurse are

 3-1     authorized to practice, a clinic operated by or associated with a

 3-2     public school district for the purpose of providing care to the

 3-3     students of that district and their siblings or an established

 3-4     patient's residence; or

 3-5                 (c)  where the physician is physically present with the

 3-6     physician assistant or advanced nurse practitioner.

 3-7           SECTION 4.  Section 14, Texas Health Maintenance Organization

 3-8     Act (Article 20A.14, Vernon's Texas Civil Statutes) is amended by

 3-9     adding a subsection (i) to read as follows:

3-10           (i)  If an advanced practice nurse or physician assistant has

3-11     been authorized to provide care pursuant to Section 3.06(d)(5) or

3-12     (6), Medical Practice Act (Article 4495b, Vernon's Texas Civil

3-13     Statutes), by a physician participating in a health maintenance

3-14     organization's provider network, the health maintenance

3-15     organization may not refuse a request by the physician and

3-16     physician assistant or advanced practice nurse for the physician

3-17     assistant or advanced practice nurse also to be identified on its

3-18     provider network except on the basis that the physician assistant

3-19     or advanced practice nurse fails to meet the pre-established

3-20     quality of care standards of the health maintenance organization

3-21     for participation by advanced practice nurses and physician

3-22     assistants.

3-23           SECTION 5.  Chapter 3, Insurance Code, is amended by adding

3-24     Article 3.70-3C to read as follows:

3-25           Art. 3.70-3C.

 4-1           Sec. 1.  In this article:

 4-2                 (1)  "Preferred Provider" means a physician, advanced

 4-3     practice nurse, physician assistant or other health care provider

 4-4     or an organization of physicians or health care providers, who

 4-5     contracts with an insurer to provide medical care or health care to

 4-6     insureds covered by a health insurance policy, certificate or

 4-7     contract.

 4-8                 (2)  "Preferred Provider Benefit Plan" means a benefit

 4-9     plan in which an insurer provides, through its health insurance

4-10     policy, for the payment of a level of coverage which is different

4-11     from the basic level of coverage provided by the health insurance

4-12     policy if the insured uses a preferred provider.

4-13           Sec. 2.  If an advanced practice nurse or physician assistant

4-14     has been authorized to provide care pursuant to Section 3.06(d)(5)

4-15     or (6), Medical Practice Act (Article 4495b, Vernon's Texas Civil

4-16     Statutes), by a physician included as a preferred provider in a

4-17     preferred provider benefit plan, the plan may not refuse a request

4-18     by the physician and physician assistant or advanced practice nurse

4-19     for the physician assistant or advanced practice nurse also to be

4-20     included as a preferred provider by the plan except on the basis

4-21     that the physician assistant or advanced practice nurse fails to

4-22     meet the pre-established quality of care standards of the preferred

4-23     provider benefit plan for participation by advanced practice nurses

4-24     and physician assistants.

4-25           SECTION 6.  Subsection (B), Section 2, Chapter 397, Acts of

 5-1     the 54th Legislature, 1955, (Article 3.70-2, Vernon's Texas

 5-2     Insurance Code) is amended to read as follows:

 5-3           (B)  No policy of accident and sickness insurance shall make

 5-4     benefits contingent upon treatment or examination by a particular

 5-5     practitioner or by particular practitioners of the healing arts

 5-6     hereinafter designated unless such policy contains a provision

 5-7     designating the practitioner or practitioners who will be

 5-8     recognized by the insurer and those who will not be recognized by

 5-9     the insurer.  Such provision may be located in the "Exceptions" or

5-10     "Exceptions and Reductions" provisions, or elsewhere in the policy,

5-11     or by endorsement attached to the policy, at the insurer's option.

5-12     In designating the practitioners who will and will not be

5-13     recognized, such provision shall use the following terms:  Doctor

5-14     of Medicine, Doctor of Osteopathy, Doctor of Dentistry, Doctor of

5-15     Chiropractic, Doctor of Optometry, Doctor of Podiatry, Licensed

5-16     Audiologist, Licensed Speech-language Pathologist, Doctor in

5-17     Psychology, Licensed Master Social Worker--Advanced Clinical

5-18     Practitioner, Licensed Dietitian, Licensed Professional Counselor,

5-19     Licensed Marriage and Family Therapist, Licensed Chemical

5-20     Dependency Counselor, Licensed Hearing Aid Fitter and Dispenser,

5-21     and Licensed Psychological Associate.

5-22           For purposes of this Act, such designations shall have the

5-23     following meanings:

5-24           Doctor of Medicine:  One licensed by the Texas State Board of

5-25     Medical Examiners on the basis of the degree "Doctor of Medicine";

 6-1           Doctor of Osteopathy:  One licensed by the Texas State Board

 6-2     of Medical Examiners on the basis of the degree of "Doctor of

 6-3     Osteopathy";

 6-4           Doctor of Dentistry:  One licensed by the State Board of

 6-5     Dental Examiners;

 6-6           Doctor of Chiropractic:  One licensed by the Texas Board of

 6-7     Chiropractic Examiners;

 6-8           Doctor of Optometry:  One licensed by the Texas Optometry

 6-9     Board;

6-10           Doctor of Podiatry:  One licensed by the Texas State Board of

6-11     Podiatric Medical Examiners;

6-12           Licensed Audiologist:  One with a master's or doctorate

6-13     degree in audiology from an accredited college or university and

6-14     who is licensed as an audiologist by the State Committee of

6-15     Examiners for Speech-Language Pathology and Audiology;

6-16           Licensed Speech-language Pathologist:  One with a master's or

6-17     doctorate degree in speech pathology or speech-language pathology

6-18     from an accredited college or university and who is licensed as a

6-19     speech-language pathologist by the State Committee of Examiners for

6-20     Speech-Language Pathology and Audiology;

6-21           Doctor in Psychology:  One licensed by the Texas State Board

6-22     of Examiners of Psychologists and certified as a Health Service

6-23     Provider;

6-24           Licensed Master Social Worker--Advanced Clinical

6-25     Practitioner:  One licensed by the Texas State Board of Social

 7-1     Worker Examiners as a Licensed Master Social Worker with the order

 7-2     of recognition of Advanced Clinical Practitioner;

 7-3           Licensed Dietitian:  One licensed by the Texas State Board of

 7-4     Examiners of Dietitians;

 7-5           Licensed Professional Counselor:  One licensed by the Texas

 7-6     State Board of Examiners of Professional Counselors;

 7-7           Licensed Marriage and Family Therapist:  One licensed by the

 7-8     Texas State Board of Examiners of Marriage and Family Therapists;

 7-9           Licensed Chemical Dependency Counselor:  One licensed by the

7-10     Texas Commission on Alcohol and Drug Abuse;

7-11           Licensed Hearing Aid Fitter and Dispenser:  One licensed by

7-12     the Texas Board of Examiners in the Fitting and Dispensing of

7-13     Hearing Aids; [and]

7-14           Licensed Psychological Associate:  One licensed by the Texas

7-15     State Board of Examiners of Psychologists and practicing under the

7-16     supervision of a licensed psychologist;

7-17           Advanced Practice Nurse:  One licensed by the Board of Nurse

7-18     Examiners as a registered nurse and recognized by that board as an

7-19     advanced practice nurse; and

7-20           Physician Assistant:  One licensed by the Texas State Board

7-21     of Physician Assistants.

7-22           SECTION 7.  Section 1, Article 21.52, Insurance Code, is

7-23     amended to read as follows:

7-24           Sec. 1.  Definitions.  As used in this article:

7-25           (a)  "health insurance policy" means any individual, group,

 8-1     blanket, or franchise insurance policy, insurance agreement, or

 8-2     group hospital service contract, providing benefits for medical or

 8-3     surgical expenses incurred as a result of an accident or sickness;

 8-4           (b)  "doctor of podiatric medicine" includes D.P.M.,

 8-5     podiatrist, doctor of surgical chiropody, D.S.C. and chiropodist;

 8-6           (c)  "doctor of optometry" includes optometrist, doctor of

 8-7     optometry, and O.D.;

 8-8           (d)  "doctor of chiropractic" means a person who is licensed

 8-9     by the Texas Board of Chiropractic Examiners to practice

8-10     chiropractic;

8-11           (e)  "licensed dentist" means a person who is licensed to

8-12     practice dentistry by the State Board of Dental Examiners;

8-13           (f)  "licensed audiologist" means a person who has received a

8-14     master's or doctorate degree in audiology from an accredited

8-15     college or university and is licensed as an audiologist by the

8-16     State Committee of Examiners for Speech-Language Pathology and

8-17     Audiology;

8-18           (g)  "licensed speech-language pathologist" means a person

8-19     who has received a master's or doctorate degree in speech-language

8-20     pathology from an accredited college or university and is licensed

8-21     as a speech-language pathologist by the State Committee of

8-22     Examiners for Speech-Language Pathology and Audiology;

8-23           (h)  "licensed master social worker--advanced clinical

8-24     practitioner" means a person who is licensed by the Texas State

8-25     Board of Social Worker Examiners as a licensed master social worker

 9-1     with the order of recognition of advanced clinical practitioner;

 9-2           (i)  "licensed dietitian" means a person who is licensed by

 9-3     the Texas State Board of Examiners of Dietitians;

 9-4           (j)  "licensed professional counselor" means a person who is

 9-5     licensed by the Texas State Board of Examiners of Professional

 9-6     Counselors;

 9-7           (k)  "psychologist" means a person licensed to practice

 9-8     psychology by the Texas State Board of Examiners of Psychologists;

 9-9           (l)  "licensed marriage and family therapist" means a person

9-10     who is licensed by the Texas State Board of Examiners of Marriage

9-11     and Family Therapists;

9-12           (m)  "licensed chemical dependency counselor" means a person

9-13     who is licensed by the Texas Commission on Alcohol and Drug Abuse;

9-14     [and]

9-15           (n)  "licensed hearing aid fitter and dispenser" means a

9-16     person who is licensed by the Texas Board of Examiners in the

9-17     Fitting and Dispensing of Hearing Aids;

9-18           ([n] o)  "licensed psychological associate" means a person

9-19     who is licensed by the Texas State Board of Examiners of

9-20     Psychologists and who practices under the supervision of a licensed

9-21     psychologist;

9-22           (p)  "advanced practice nurse" means a person licensed by the

9-23     Board of Nurse Examiners and recognized by that board as an

9-24     advanced practice nurse; and

9-25           (q)  "physician assistant" means a person licensed by the

 10-1    Texas State Board of Physician Assistants.

 10-2          SECTION 8.  Section 3, Article 21.52, Insurance Code, is

 10-3    amended to read as follows:

 10-4          Sec. 3.  (a)  Selection of practitioners.  Any person who is

 10-5    issued, who is a party to, or who is a beneficiary under any health

 10-6    insurance policy delivered, renewed, or issued for delivery in this

 10-7    state by any insurance company, association, or organization to

 10-8    which this article applies may select a licensed doctor of

 10-9    podiatric medicine, a licensed dentist, or a doctor of chiropractic

10-10    to perform the medical or surgical services or procedures scheduled

10-11    in the policy which fall within the scope of the license of that

10-12    practitioner, a licensed doctor of optometry to perform the

10-13    services or procedures scheduled in the policy which fall within

10-14    the scope of the license of that doctor of optometry, a licensed

10-15    audiologist to measure hearing for the purpose of determining the

10-16    presence or extent of a hearing loss and to provide aural

10-17    rehabilitation services to a person with a hearing loss if those

10-18    services or procedures are scheduled in the policy, a licensed

10-19    speech-language pathologist to evaluate speech and language and to

10-20    provide habilitative and rehabilitative services to restore speech

10-21    or language loss or to correct a speech or language impairment if

10-22    those services or procedures are scheduled in the policy, a

10-23    licensed master social worker--advanced clinical practitioner to

10-24    provide the services that fall within the scope of the license of

10-25    such certified practitioner and which are specified as services

 11-1    within the terms of the policy of insurance, including the

 11-2    provision of direct, diagnostic, preventive, or clinical services

 11-3    to individuals, families, and groups whose functioning is

 11-4    threatened or affected by social or psychological stress or health

 11-5    impairment, if those services or procedures are scheduled in the

 11-6    policy, a licensed dietitian including a provisional licensed

 11-7    dietitian under a licensed dietitian's supervision to provide the

 11-8    services that fall within the scope of the license of that

 11-9    dietitian if those services are scheduled in the policy, a licensed

11-10    professional counselor to provide the services that fall within the

11-11    scope of the license of that professional if those services are

11-12    scheduled in the policy, a licensed marriage and family therapist

11-13    to provide the services that fall within the scope of the license

11-14    of that professional if those services are scheduled in the policy,

11-15    a psychologist to perform the services or procedures scheduled in

11-16    the policy that fall within the scope of the license of that

11-17    psychologist, a licensed chemical dependency counselor to perform

11-18    the services or procedures scheduled in the policy that fall within

11-19    the scope of the license of that practitioner, a licensed hearing

11-20    aid fitter and dispenser to provide the services or procedures

11-21    scheduled in the policy that fall within the scope of the license

11-22    of that practitioner, or a licensed psychological associate to

11-23    provide the services that fall within the scope of the license of

11-24    that professional if those services are scheduled in the policy.

11-25    The services of a licensed master social worker--advanced clinical

 12-1    practitioner, licensed professional counselor, or licensed marriage

 12-2    and family therapist that are included in this Act may require a

 12-3    professional recommendation by a doctor of medicine or doctor of

 12-4    osteopathy unless the health insurance policy terms do not require

 12-5    such a recommendation.  The payment or reimbursement by the

 12-6    insurance company, association, or organization for those services

 12-7    or procedures in accordance with the payment schedule or the

 12-8    payment provisions in the policy shall not be denied because the

 12-9    same were performed by a licensed doctor of podiatric medicine, a

12-10    licensed doctor of optometry, a licensed doctor of chiropractic, a

12-11    licensed dentist, a licensed audiologist, a licensed

12-12    speech-language pathologist, a licensed master social

12-13    worker--advanced clinical practitioner, a licensed dietitian, a

12-14    licensed professional counselor, a licensed marriage and family

12-15    therapist, a psychologist, a licensed chemical dependency

12-16    counselor, a licensed psychological associate, or a licensed

12-17    hearing aid fitter and dispenser.  There shall not be any

12-18    classification, differentiation, or other discrimination in the

12-19    payment schedule or the payment provisions in a health insurance

12-20    policy, nor in the amount or manner of payment or reimbursement

12-21    thereunder, between scheduled services or procedures when performed

12-22    by a doctor of podiatric medicine, a doctor of optometry, a doctor

12-23    of chiropractic, a licensed dentist, a licensed audiologist, a

12-24    licensed speech-language pathologist, a licensed master social

12-25    worker--advanced clinical practitioner, a licensed dietitian, a

 13-1    licensed professional counselor, a licensed marriage and family

 13-2    therapist, a psychologist, a licensed psychological associate, a

 13-3    licensed chemical dependency counselor, or a licensed hearing aid

 13-4    fitter and dispenser which fall within the scope of the license or

 13-5    certification and the same services or procedures when performed by

 13-6    any other practitioner of the healing arts whose services or

 13-7    procedures are covered by the policy.  Any provision in a health

 13-8    insurance policy contrary to or in conflict with the provisions of

 13-9    this article shall, to the extent of the conflict, be void, but

13-10    such invalidity shall not affect the validity of the other

13-11    provisions of this policy.  Any presently approved policy form

13-12    containing any provision in conflict with the requirements of this

13-13    Act shall be brought into compliance with this Act by the use of

13-14    riders and endorsements which have been approved by the State Board

13-15    of Insurance or by the filing of new or revised policy forms for

13-16    approval by the State Board of Insurance.

13-17          (b)  Advanced practice nurses and physician assistants

13-18    performing services or procedures scheduled in the policy which

13-19    fall within the scope of the license of the advanced practice nurse

13-20    or physician assistant or which the advanced practice nurse or

13-21    physician assistant may perform under the authority of Section

13-22    3.06(d)(5) or (6), Medical Practice Act (Article 4495b, Vernon's

13-23    Texas Civil Statutes), shall be considered to be practitioners

13-24    listed in Subsection (a) for all purposes except that a health

13-25    insurance policy may differentiate in its payment schedule or

 14-1    payment provisions or in its amount of payment or manner of payment

 14-2    or reimbursement for scheduled services or procedures when

 14-3    performed by a physician and when performed by an advanced practice

 14-4    nurse or physician assistant based on reasonable differences in the

 14-5    costs between a physician providing those services or procedures

 14-6    and an advanced practice nurse or physician assistant providing

 14-7    them.

 14-8          SECTION 9.  Section 241.003, Health and Safety Code, is

 14-9    amended to read as follows:

14-10          Sec. 241.003.  DEFINITIONS.  In this chapter:

14-11                (1)  "Advanced practice nurse" means a registered nurse

14-12    recognized as an advanced practice nurse by the Board of Nurse

14-13    Examiners.

14-14                (2)  ("Board" means the Texas Board of Health.

14-15                (3) [(2)]  "Council" means the Hospital Licensing

14-16    Advisory Council.

14-17                (4) [(3)]  "Department" means the Texas Department of

14-18    Health.

14-19                (5) [(4)]  "General hospital" means an establishment

14-20    that:

14-21                      (A)  offers services, facilities, and beds for

14-22    use for more than 24 hours for two or more unrelated individuals

14-23    requiring diagnosis, treatment, or care for illness, injury,

14-24    deformity, abnormality, or pregnancy; and

14-25                      (B)  regularly maintains, at a minimum, clinical

 15-1    laboratory services, diagnostic X-ray services, treatment

 15-2    facilities including surgery or obstetrical care or both, and other

 15-3    definitive medical or surgical treatment of similar extent.

 15-4                (6) [(5)]  "Governmental unit" means a political

 15-5    subdivision of the state, including a hospital district, county, or

 15-6    municipality, and any department, division, board, or other agency

 15-7    of a political subdivision.

 15-8                (7) [(6)]  "Hospital" includes a general hospital and a

 15-9    special hospital.

15-10                (8) [(7)]  "Medical staff" means a physician or group

15-11    of physicians, and a podiatrist or group of podiatrists, who by

15-12    action of the governing body of a hospital are privileged to work

15-13    in and use the facilities of a hospital for or in connection with

15-14    the observation, care, diagnosis, or treatment of an individual who

15-15    is, or may be, suffering from a mental or physical disease or

15-16    disorder or a physical deformity or injury.

15-17                (9) [(8)]  "Person" means an individual, firm,

15-18    partnership, corporation, association, or joint stock company, and

15-19    includes a receiver, trustee, assignee, or other similar

15-20    representative of those entities.

15-21                (10) [(9)]  "Physician" means a physician licensed by

15-22    the Texas State Board of Medical Examiners.

15-23                (11)  "Physician Assistant" means a physician assistant

15-24    licensed by the Texas State Board of Physician Assistant Examiners.

15-25                (12) [(10)]  "Podiatrist" means a podiatrist licensed

 16-1    by the Texas State Board of Podiatry Examiners.

 16-2                (13) [(11)]  "Special hospital" means an establishment

 16-3    that:

 16-4                      (A)  offers services, facilities, and beds for

 16-5    use for more than 24 hours for two or more unrelated individuals

 16-6    who are regularly admitted, treated, and discharged and who require

 16-7    services more intensive than room, board, personal services, and

 16-8    general nursing care;

 16-9                      (B)  has clinical laboratory facilities,

16-10    diagnostic X-ray facilities, treatment facilities, or other

16-11    definitive medical treatment;

16-12                      (C)  has a medical staff in regular attendance;

16-13    and

16-14                      (D)  maintains records of the clinical work

16-15    performed for each patient.

16-16          SECTION 10.  Chapter 241, Health and Safety Code, is amended

16-17    by adding a Section 241.105 to read as follows:

16-18          Sec. 241.105.  Hospital Privileges for Advanced Practice

16-19    Nurses and Physician Assistants.

16-20          (a)  The governing body of a hospital is authorized to

16-21    establish policies concerning the granting of medical staff or

16-22    other clinical privileges to advanced practice nurses or physician

16-23    assistants, including the application process, qualifications for

16-24    privileges and the process for modification or revocation of

16-25    privileges.

 17-1          (b)  If the governing body of a hospital has adopted a policy

 17-2    of extending medical staff or other clinical privileges to advanced

 17-3    practice nurses or physician assistants, an individual advanced

 17-4    practice nurse or physician assistant who qualifies for privileges

 17-5    under that policy shall be entitled to certain due process rights,

 17-6    as determined by the hospital board, when an application for

 17-7    privileges is submitted to the hospital.  At a minimum, any policy

 17-8    adopted shall specify a reasonable time period for the processing

 17-9    and consideration of the application and shall provide for written

17-10    notification of the applicant of any final action by the hospital

17-11    on the application, including any reason for denial or restriction

17-12    of the privileges requested.

17-13          (c)  If an advanced practice nurse or physician assistant has

17-14    been granted medical or other clinical privileges by a hospital,

17-15    that hospital may not modify or revoke those privileges without

17-16    providing certain due process rights, as determined by the hospital

17-17    board, to the advanced practice nurse or physician assistant.  At a

17-18    minimum, the hospital shall provide the advanced practice nurse or

17-19    physician assistant with written reasons for the modification or

17-20    revocation of privileges and a mechanism for appeal.

17-21          SECTION 11.  This Act takes effect September 1, 1997.

17-22          SECTION 12.  The importance of this legislation and the

17-23    crowded condition of the calendars in both houses create an

17-24    emergency and an imperative public necessity that the

17-25    constitutional rule requiring bills to be read on three several

 18-1    days in each house be suspended, and this rule is hereby suspended,

 18-2    and that this Act take effect and be in force from and after its

 18-3    passage, and it is so enacted.