By:  Madla                                            S.B. No. 1575

         Line and page numbers may not match official copy.

         Bill not drafted by TLC or Senate E&E.

                                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           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subdivision (5)(D), Subsection (d), Section 3.06,

 1-5     Medical Practice Act (Article 4495b, Vernon's Texas Civil Statutes)

 1-6     is amended to read as follows:

 1-7                       (D)  Physician supervision shall be adequate if a

 1-8     delegating physician:

 1-9                             (i)  is responsible for the formulation or

1-10     approval of such physician's orders, standing medical orders,

1-11     standing delegation orders, or other orders or protocols and

1-12     periodically reviews such orders and the services provided patients

1-13     under such orders;

1-14                             (ii)  is on site at least once [a week]

1-15     every ten business days to provide medical direction and

1-16     consultation;

1-17                             (iii)  receives a daily status report from

1-18     the registered nurse or physician assistant on any problems or

1-19     complications encountered; and

1-20                             (iv)  is available through direct

1-21     telecommunication for consultation, assistance with medical

 2-1     emergencies, or patient referral.

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

 2-3     Medical Practice Act (Article 4495b, Vernon's Texas Civil

 2-4     Statutes), is amended by adding a Paragraph (I) to read as follows:

 2-5                       (I)  The Board, for good cause shown, may grant a

 2-6     waiver of one or more of the physician supervision requirements set

 2-7     out in Paragraph (D) of this Subdivision.  In granting the waiver,

 2-8     the Board shall consider:

 2-9                             (i)  the adequacy of the collaborative

2-10     relationship between the physician and the Advanced Practice Nurse

2-11     or Physician Assistant;

2-12                             (ii)  the mechanism to be established to

2-13     ensure adequate physician supervision and patient care;

2-14                             (iii)  that compliance with the

2-15     requirements causes undue burden without corresponding benefit to

2-16     patient care; and

2-17                             (iv)  other provisions established by the

2-18     Board by rule.

2-19           The Board may withdraw the waiver after notice and hearing

2-20     and a waiver must be renewed every three years in accordance with

2-21     rules established by the Board.

2-22           SECTION 3.  Subdivision (6)(G)(iii), Subsection (d), Section

2-23     3.06, Medical Practice Act (Article 4495b, Vernon's Texas Civil

2-24     Statutes), is amended to read as follows:

2-25                             (iii)  "Primary practice site" means:

 3-1           (a)  the practice location where the physician spends the

 3-2     majority of the physician's time;

 3-3           (b)  a licensed hospital, a licensed long-term care facility,

 3-4     and a licensed adult care center where both the physician and the

 3-5     Physician Assistant or Advanced Practice Nurse are authorized to

 3-6     practice, a clinic operated by or associated with a public school

 3-7     district for the purpose of providing care to the students of that

 3-8     district and their siblings or an established patient's residence;

 3-9     or

3-10           (c)  where the physician is physically present with the

3-11     physician assistant or advanced nurse practitioner.

3-12           SECTION 4.  Section 14, Texas Health Maintenance Organization

3-13     Act (Article 20A.14, Vernon's Texas Civil Statutes) is amended by

3-14     adding a Subsection (i) to read as follows:

3-15           (i)  If an advanced practice nurse or physician assistant has

3-16     been authorized to provide care pursuant to Section 3.06(d)(5) or

3-17     (6), Medical Practice Act (Article 4495b, Vernon's Texas Civil

3-18     Statutes), by a physician participating in a health maintenance

3-19     organization's provider network, the health maintenance

3-20     organization may not refuse a request by the physician and

3-21     physician assistant or advanced practice nurse for the physician

3-22     assistant or advanced practice nurse also to be identified on its

3-23     provider network except on the basis that the physician assistant

3-24     or advanced practice nurse fails to meet the pre-established

3-25     quality of care standards of the health maintenance organization

 4-1     for participation by advanced practice nurses and physician

 4-2     assistants.

 4-3           SECTION 5.  Chapter 3, Insurance Code, is amended by adding

 4-4     Article 3.70-3C to read as follows:

 4-5           Art. 3.70-3C.

 4-6           Sec. 1.  In this article:

 4-7                 (1)  "Preferred Provider" means a physician, advanced

 4-8     practice nurse, physician assistant or other health care provider

 4-9     or an organization of physicians or health care providers, who

4-10     contracts with an insurer to provide medical care or health care to

4-11     insureds covered by a health insurance policy, certificate or

4-12     contract.

4-13                 (2)  "Preferred Provider Benefit Plan" means a benefit

4-14     plan in which an insurer provides, through its health insurance

4-15     policy, for the payment of a level of coverage which is different

4-16     from the basic level of coverage provided by the health insurance

4-17     policy if the insured uses a preferred provider.

4-18           Sec. 2.  If an advanced practice nurse or physician assistant

4-19     has been authorized to provide care pursuant to Section 3.06(d)(5)

4-20     or (6), Medical Practice Act (Article 4495b, Vernon's Texas Civil

4-21     Statutes), by a physician included as a preferred provider in a

4-22     preferred provider benefit plan, the plan may not refuse a request

4-23     by the physician and physician assistant or advanced practice nurse

4-24     for the physician assistant or advanced practice nurse also to be

4-25     included as a preferred provider by the plan except on the basis

 5-1     that the physician assistant or advanced practice nurse fails to

 5-2     meet the pre-established quality of care standards of the preferred

 5-3     provider benefit plan for participation by advanced practice nurses

 5-4     and physician assistants.

 5-5           SECTION 6.  Subsection (B), Section 2, Chapter 397, Acts of

 5-6     the 54th Legislature, 1955, (Article 3.70-2, Vernon's Texas

 5-7     Insurance Code) is amended to read as follows:

 5-8           (B)  No policy of accident and sickness insurance shall make

 5-9     benefits contingent upon treatment or examination by a particular

5-10     practitioner or by particular practitioners of the healing arts

5-11     hereinafter designated unless such policy contains a provision

5-12     designating the practitioner or practitioners who will be

5-13     recognized by the insurer and those who will not be recognized by

5-14     the insurer.  Such provision may be located in the "Exceptions" or

5-15     "Exceptions and Reductions" provisions, or elsewhere in the policy,

5-16     or by endorsement attached to the policy, at the insurer's option.

5-17     In designating the practitioners who will and will not be

5-18     recognized, such provision shall use the following terms:  Doctor

5-19     of Medicine, Doctor of Osteopathy, Doctor of Dentistry, Doctor of

5-20     Chiropractic, Doctor of Optometry, Doctor of Podiatry, Licensed

5-21     Audiologist, Licensed Speech-language Pathologist, Doctor in

5-22     Psychology, Licensed Master Social Worker--Advanced Clinical

5-23     Practitioner, Licensed Dietitian, Licensed Professional Counselor,

5-24     Licensed Marriage and Family Therapist, Licensed Chemical

5-25     Dependency Counselor, Licensed Hearing Aid Fitter and Dispenser,

 6-1     and Licensed Psychological Associate.

 6-2           For purposes of this Act, such designations shall have the

 6-3     following meanings:

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

 6-5     Medical Examiners on the basis of the degree "Doctor of Medicine";

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

 6-7     of Medical Examiners on the basis of the degree of "Doctor of

 6-8     Osteopathy";

 6-9           Doctor of Dentistry:  One licensed by the State Board of

6-10     Dental Examiners;

6-11           Doctor of Chiropractic:  One licensed by the Texas Board of

6-12     Chiropractic Examiners;

6-13           Doctor of Optometry:  One licensed by the Texas Optometry

6-14     Board;

6-15           Doctor of Podiatry:  One licensed by the Texas State Board of

6-16     Podiatric Medical Examiners;

6-17           Licensed Audiologist:  One with a master's or doctorate

6-18     degree in audiology from an accredited college or university and

6-19     who is licensed as an audiologist by the State Committee of

6-20     Examiners for Speech-Language Pathology and Audiology;

6-21           Licensed Speech-language Pathologist:  One with a master's or

6-22     doctorate degree in speech pathology or speech-language pathology

6-23     from an accredited college or university and who is licensed as a

6-24     speech-language pathologist by the State Committee of Examiners for

6-25     Speech-Language Pathology and Audiology;

 7-1           Doctor in Psychology:  One licensed by the Texas State Board

 7-2     of Examiners of Psychologists and certified as a Health Service

 7-3     Provider;

 7-4           Licensed Master Social Worker--Advanced Clinical

 7-5     Practitioner:  One licensed by the Texas State Board of Social

 7-6     Worker Examiners as a Licensed Master Social Worker with the order

 7-7     of recognition of Advanced Clinical Practitioner;

 7-8           Licensed Dietitian:  One licensed by the Texas State Board of

 7-9     Examiners of Dietitians;

7-10           Licensed Professional Counselor:  One licensed by the Texas

7-11     State Board of Examiners of Professional Counselors;

7-12           Licensed Marriage and Family Therapist:  One licensed by the

7-13     Texas State Board of Examiners of Marriage and Family Therapists;

7-14           Licensed Chemical Dependency Counselor:  One licensed by the

7-15     Texas Commission on Alcohol and Drug Abuse;

7-16           Licensed Hearing Aid Fitter and Dispenser:  One licensed by

7-17     the Texas Board of Examiners in the Fitting and Dispensing of

7-18     Hearing Aids; [and]

7-19           Licensed Psychological Associate:  One licensed by the Texas

7-20     State Board of Examiners of Psychologists and practicing under the

7-21     supervision of a licensed psychologist;

7-22           Advanced Practice Nurse:  One licensed by the Board of Nurse

7-23     Examiners as a registered nurse and recognized by that board as an

7-24     advanced practice nurse; and

7-25           Physician Assistant:  One licensed by the Texas State Board

 8-1     of Physician Assistants.

 8-2           SECTION 7.  Section 1, Article 21.52, Insurance Code, is

 8-3     amended to read as follows:

 8-4           Sec. 1.  DEFINITIONS.  As used in this article:

 8-5           (a)  "health insurance policy" means any individual, group,

 8-6     blanket, or franchise insurance policy, insurance agreement, or

 8-7     group hospital service contract, providing benefits for medical or

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

 8-9           (b)  "doctor of podiatric medicine" includes D.P.M.,

8-10     podiatrist, doctor of surgical chiropody, D.S.C. and chiropodist;

8-11           (c)  "doctor of optometry" includes optometrist, doctor of

8-12     optometry, and O.D.;

8-13           (d)  "doctor of chiropractic" means a person who is licensed

8-14     by the Texas Board of Chiropractic Examiners to practice

8-15     chiropractic;

8-16           (e)  "licensed dentist" means a person who is licensed to

8-17     practice dentistry by the State Board of Dental Examiners;

8-18           (f)  "licensed audiologist" means a person who has received a

8-19     master's or doctorate degree in audiology from an accredited

8-20     college or university and is licensed as an audiologist by the

8-21     State Committee of Examiners for Speech-Language Pathology and

8-22     Audiology;

8-23           (g)  "licensed speech-language pathologist" means a person

8-24     who has received a master's or doctorate degree in speech-language

8-25     pathology from an accredited college or university and is licensed

 9-1     as a speech-language pathologist by the State Committee of

 9-2     Examiners for Speech-Language Pathology and Audiology;

 9-3           (h)  "licensed master social worker--advanced clinical

 9-4     practitioner" means a person who is licensed by the Texas State

 9-5     Board of Social Worker Examiners as a licensed master social worker

 9-6     with the order of recognition of advanced clinical practitioner;

 9-7           (i)  "licensed dietitian" means a person who is licensed by

 9-8     the Texas State Board of Examiners of Dietitians;

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

9-10     licensed by the Texas State Board of Examiners of Professional

9-11     Counselors;

9-12           (k)  "psychologist" means a person licensed to practice

9-13     psychology by the Texas State Board of Examiners of Psychologists;

9-14           (l)  "licensed marriage and family therapist" means a person

9-15     who is licensed by the Texas State Board of Examiners of Marriage

9-16     and Family Therapists;

9-17           (m)  "licensed chemical dependency counselor" means a person

9-18     who is licensed by the Texas Commission on Alcohol and Drug Abuse;

9-19     [and]

9-20           (n)  "licensed hearing aid fitter and dispenser" means a

9-21     person who is licensed by the Texas Board of Examiners in the

9-22     Fitting and Dispensing of Hearing Aids;

9-23           [(n)] (o)  "licensed psychological associate" means a person

9-24     who is licensed by the Texas State Board of Examiners of

9-25     Psychologists and who practices under the supervision of a licensed

 10-1    psychologist;

 10-2          (p)  "advanced practice nurse" means a person licensed by the

 10-3    Board of Nurse Examiners and recognized by that board as an

 10-4    advanced practice nurse; and

 10-5          (q)  "physician assistant" means a person licensed by the

 10-6    Texas State Board of Physician Assistants.

 10-7          SECTION 8.  Section 3, Article 21.52, Insurance Code, is

 10-8    amended to read as follows:

 10-9          Sec. 3.  (a)  Selection of Practitioners.  Any person who is

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

10-11    insurance policy delivered, renewed, or issued for delivery in this

10-12    state by any insurance company, association, or organization to

10-13    which this article applies may select a licensed doctor of

10-14    podiatric medicine, a licensed dentist, or a doctor of chiropractic

10-15    to perform the medical or surgical services or procedures scheduled

10-16    in the policy which fall within the scope of the license of that

10-17    practitioner, a licensed doctor of optometry to perform the

10-18    services or procedures scheduled in the policy which fall within

10-19    the scope of the license of that doctor of optometry, a licensed

10-20    audiologist to measure hearing for the purpose of determining the

10-21    presence or extent of a hearing loss and to provide aural

10-22    rehabilitation services to a person with a hearing loss if those

10-23    services or procedures are scheduled in the policy, a licensed

10-24    speech-language pathologist to evaluate speech and language and to

10-25    provide habilitative and rehabilitative services to restore speech

 11-1    or language loss or to correct a speech or language impairment if

 11-2    those services or procedures are scheduled in the policy, a

 11-3    licensed master social worker--advanced clinical practitioner to

 11-4    provide the services that fall within the scope of the license of

 11-5    such certified practitioner and which are specified as services

 11-6    within the terms of the policy of insurance, including the

 11-7    provision of direct, diagnostic, preventive, or clinical services

 11-8    to individuals, families, and groups whose functioning is

 11-9    threatened or affected by social or psychological stress or health

11-10    impairment, if those services or procedures are scheduled in the

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

11-12    dietitian under a licensed dietitian's supervision to provide the

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

11-14    dietitian if those services are scheduled in the policy, a licensed

11-15    professional counselor to provide the services that fall within the

11-16    scope of the license of that professional if those services are

11-17    scheduled in the policy, a licensed marriage and family therapist

11-18    to provide the services that fall within the scope of the license

11-19    of that professional if those services are scheduled in the policy,

11-20    a psychologist to perform the services or procedures scheduled in

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

11-22    psychologist, a licensed chemical dependency counselor to perform

11-23    the services or procedures scheduled in the policy that fall within

11-24    the scope of the license of that practitioner, a licensed hearing

11-25    aid fitter and dispenser to provide the services or procedures

 12-1    scheduled in the policy that fall within the scope of the license

 12-2    of that practitioner, or a licensed psychological associate to

 12-3    provide the services that fall within the scope of the license of

 12-4    that professional if those services are scheduled in the policy.

 12-5    The services of a licensed master social worker--advanced clinical

 12-6    practitioner, licensed professional counselor, or licensed marriage

 12-7    and family therapist that are included in this Act may require a

 12-8    professional recommendation by a doctor of medicine or doctor of

 12-9    osteopathy unless the health insurance policy terms do not require

12-10    such a recommendation.  The payment or reimbursement by the

12-11    insurance company, association, or organization for those services

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

12-13    payment provisions in the policy shall not be denied because the

12-14    same were performed by a licensed doctor of podiatric medicine, a

12-15    licensed doctor of optometry, a licensed doctor of chiropractic, a

12-16    licensed dentist, a licensed audiologist, a licensed

12-17    speech-language pathologist, a licensed master social

12-18    worker--advanced clinical practitioner, a licensed dietitian, a

12-19    licensed professional counselor, a licensed marriage and family

12-20    therapist, a psychologist, a licensed chemical dependency

12-21    counselor, a licensed psychological associate, or a licensed

12-22    hearing aid fitter and dispenser.  There shall not be any

12-23    classification, differentiation, or other discrimination in the

12-24    payment schedule or the payment provisions in a health insurance

12-25    policy, nor in the amount or manner of payment or reimbursement

 13-1    thereunder, between scheduled services or procedures when performed

 13-2    by a doctor of podiatric medicine, a doctor of optometry, a doctor

 13-3    of chiropractic, a licensed dentist, a licensed audiologist, a

 13-4    licensed speech-language pathologist, a licensed master social

 13-5    worker--advanced clinical practitioner, a licensed dietitian, a

 13-6    licensed professional counselor, a licensed marriage and family

 13-7    therapist, a psychologist, a licensed psychological associate, a

 13-8    licensed chemical dependency counselor, or a licensed hearing aid

 13-9    fitter and dispenser which fall within the scope of the license or

13-10    certification and the same services or procedures when performed by

13-11    any other practitioner of the healing arts whose services or

13-12    procedures are covered by the policy.  Any provision in a health

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

13-14    this article shall, to the extent of the conflict, be void, but

13-15    such invalidity shall not affect the validity of the other

13-16    provisions of this policy.  Any presently approved policy form

13-17    containing any provision in conflict with the requirements of this

13-18    Act shall be brought into compliance with this Act by the use of

13-19    riders and endorsements which have been approved by the State Board

13-20    of Insurance or by the filing of new or revised policy forms for

13-21    approval by the State Board of Insurance.

13-22          (b)  Advanced practice nurses and physician assistants

13-23    performing services or procedures scheduled in the policy which

13-24    fall within the scope of the license of the advanced practice nurse

13-25    or physician assistant or which the advanced practice nurse or

 14-1    physician assistant may perform under the authority of Section

 14-2    3.06(d)(5) or (6), Medical Practice Act (Article 4495b, Vernon's

 14-3    Texas Civil Statutes), shall be considered to be practitioners

 14-4    listed in Subsection (a) for all purposes except that a health

 14-5    insurance policy may differentiate in its payment schedule or

 14-6    payment provisions or in its amount of payment or manner of payment

 14-7    or reimbursement for scheduled services or procedures when

 14-8    performed by a physician and when performed by an advanced practice

 14-9    nurse or physician assistant based on reasonable differences in the

14-10    costs between a physician providing those services or procedures

14-11    and an advanced practice nurse or physician assistant providing

14-12    them.

14-13          SECTION 9.  Section 241.003, Health and Safety Code, is

14-14    amended to read as follows:

14-15          Sec. 241.003.  Definitions.  In this chapter:

14-16                (1)  "Advanced practice nurse" means a registered nurse

14-17    recognized as an advanced practice nurse by the Board of Nurse

14-18    Examiners.

14-19                (2)  "Board" means the Texas Board of Health.

14-20                (3) [(2)]  "Council" means the Hospital Licensing

14-21    Advisory Council.

14-22                (4) [(3)]  "Department" means the Texas Department of

14-23    Health.

14-24                (5) [(4)]  "General hospital" means an establishment

14-25    that:

 15-1                      (A)  offers services, facilities, and beds for

 15-2    use for more than 24 hours for two or more unrelated individuals

 15-3    requiring diagnosis, treatment, or care for illness, injury,

 15-4    deformity, abnormality, or pregnancy; and

 15-5                      (B)  regularly maintains, at a minimum, clinical

 15-6    laboratory services, diagnostic X-ray services, treatment

 15-7    facilities including surgery or obstetrical care or both, and other

 15-8    definitive medical or surgical treatment of similar extent.

 15-9                (6) [(5)]  "Governmental unit" means a political

15-10    subdivision of the state, including a hospital district, county, or

15-11    municipality, and any department, division, board, or other agency

15-12    of a political subdivision.

15-13                (7) [(6)]  "Hospital" includes a general hospital and a

15-14    special hospital.

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

15-16    of physicians, and a podiatrist or group of podiatrists, who by

15-17    action of the governing body of a hospital are privileged to work

15-18    in and use the facilities of a hospital for or in connection with

15-19    the observation, care, diagnosis, or treatment of an individual who

15-20    is, or may be, suffering from a mental or physical disease or

15-21    disorder or a physical deformity or injury.

15-22                (9) [(8)]  "Person" means an individual, firm,

15-23    partnership, corporation, association, or joint stock company, and

15-24    includes a receiver, trustee, assignee, or other similar

15-25    representative of those entities.

 16-1                (10) [(9)]  "Physician" means a physician licensed by

 16-2    the Texas State Board of Medical Examiners.

 16-3                (11)  "Physician Assistant" means a physician assistant

 16-4    licensed by the Texas State Board of Physician Assistant Examiners.

 16-5                (12) [(10)]  "Podiatrist" means a podiatrist licensed

 16-6    by the Texas State Board of Podiatry Examiners.

 16-7                (13) [(11)]  "Special hospital" means an establishment

 16-8    that:

 16-9                      (A)  offers services, facilities, and beds for

16-10    use for more than 24 hours for two or more unrelated individuals

16-11    who are regularly admitted, treated, and discharged and who require

16-12    services more intensive than room, board, personal services, and

16-13    general nursing care;

16-14                      (B)  has clinical laboratory facilities,

16-15    diagnostic X-ray facilities, treatment facilities, or other

16-16    definitive medical treatment;

16-17                      (C)  has a medical staff in regular attendance;

16-18    and

16-19                      (D)  maintains records of the clinical work

16-20    performed for each patient.

16-21          SECTION 10.  Chapter 241, Health and Safety Code, is amended

16-22    by adding a Section 241.105 to read as follows:

16-23          Sec. 241.105.  Hospital Privileges for Advanced Practice

16-24    Nurses and Physician Assistants.  (a)  The governing body of a

16-25    hospital is authorized to establish policies concerning the

 17-1    granting of medical staff or other clinical privileges to advanced

 17-2    practice nurses or physician assistants, including the application

 17-3    process, qualifications for privileges and the process for

 17-4    modification or revocation of privileges.

 17-5          (b)  If the governing body of a hospital has adopted a policy

 17-6    of extending medical staff or other clinical privileges to advanced

 17-7    practice nurses or physician assistants, an individual advanced

 17-8    practice nurse or physician assistant who qualifies for privileges

 17-9    under that policy shall be entitled to certain due process rights,

17-10    as determined by the hospital board, when an application for

17-11    privileges is submitted to the hospital.  At a minimum, any policy

17-12    adopted shall specify a reasonable time period for the processing

17-13    and consideration of the application and shall provide for written

17-14    notification of the applicant of any final action by the hospital

17-15    on the application, including any reason for denial or restriction

17-16    of the privileges requested.

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

17-18    been granted medical or other clinical privileges by a hospital,

17-19    that hospital may not modify or revoke those privileges without

17-20    providing certain due process rights, as determined by the hospital

17-21    board, to the advanced practice nurse or physician assistant.  At a

17-22    minimum, the hospital shall provide the advanced practice nurse or

17-23    physician assistant with written reasons for the modification or

17-24    revocation of privileges and a mechanism for appeal.

17-25          SECTION 11.  This Act takes effect September 1, 1997.

 18-1          SECTION 12.  The importance of this legislation and the

 18-2    crowded condition of the calendars in both houses create an

 18-3    emergency and an imperative public necessity that the

 18-4    constitutional rule requiring bills to be read on three several

 18-5    days in each house be suspended, and this rule is hereby suspended,

 18-6    and that this Act take effect and be in force from and after its

 18-7    passage, and it is so enacted.