AN ACT
1-1 relating to the formation of an integrated health care system by
1-2 the El Paso County Hospital District and a medical school.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subchapter C, Chapter 281, Health and Safety
1-5 Code, is amended by adding Section 281.0517 to read as follows:
1-6 Sec. 281.0517. INTEGRATED HEALTH CARE SYSTEM. (a) In this
1-7 section:
1-8 (1) "Integrated health care system" means a nonprofit
1-9 corporation established and operated by a district and a medical
1-10 school to provide or arrange for comprehensive health care services
1-11 for residents of the district.
1-12 (2) "Provider" means a physician or a provider as
1-13 defined under Section 2, Texas Health Maintenance Organization Act
1-14 (Article 20A.02, Vernon's Texas Insurance Code).
1-15 (3) "Medical school" means a medical school governed
1-16 by Chapter 110, Education Code.
1-17 (b) The El Paso County Hospital District and a medical
1-18 school may establish and operate an integrated health care system.
1-19 (c) To provide or arrange for comprehensive health care
1-20 services, an integrated health care system created under this
1-21 section may:
1-22 (1) own, acquire, lease, or contract for all necessary
1-23 assets;
2-1 (2) enter into contracts with providers for the
2-2 provision of health care services directly or indirectly through
2-3 subcontract;
2-4 (3) provide or enter into a contract with an
2-5 individual or business entity under which the individual or entity
2-6 provides necessary management or administrative services for the
2-7 system and the system's providers;
2-8 (4) enter into a contract or other agreement with a
2-9 business or governmental entity under which the system is paid to
2-10 provide health care services; and
2-11 (5) enter into a fee-for-service, capitated, or
2-12 risk-sharing health care service arrangement.
2-13 (d) An integrated health care system that recites in its
2-14 articles of incorporation that it is created under this section is:
2-15 (1) subject to:
2-16 (A) Chapter 551, Government Code;
2-17 (B) Chapter 552, Government Code;
2-18 (C) the Texas Health Maintenance Organization
2-19 Act (Chapter 20A, Vernon's Texas Insurance Code);
2-20 (D) Article 21.52F, Insurance Code; and
2-21 (E) Chapter 262, Local Government Code; and
2-22 (2) a unit of local government for the purposes of
2-23 Chapter 101, Civil Practice and Remedies Code.
2-24 (e) Notwithstanding Subsection (d)(1)(A), an integrated
2-25 health care system created under this section may hold a closed
3-1 meeting to deliberate:
3-2 (1) pricing or financial planning relating to a bid or
3-3 negotiation for a contract to provide a service or product line, if
3-4 an open meeting would have a detrimental effect on the position of
3-5 the system in the bid or negotiation process; or
3-6 (2) a proposed new service or product line, if the
3-7 meeting is held before public announcement of the service or
3-8 product line.
3-9 (f) Notwithstanding Subsection (d)(1)(B), information
3-10 relating to the following is confidential and not subject to
3-11 disclosure:
3-12 (1) pricing or financial planning relating to a bid or
3-13 negotiation for a contract to provide a service or product line, if
3-14 disclosure would have a detrimental effect on the position of the
3-15 integrated health care system in the bid or negotiation process; or
3-16 (2) a proposed new service or product line, if
3-17 disclosure is requested before public announcement of the service
3-18 or product line.
3-19 (g) Subject to the requirements and limitations of the local
3-20 health care market, an integrated health care system created under
3-21 this section shall make reasonable efforts to include in its
3-22 provider group community providers other than the medical school
3-23 and a hospital of the El Paso County Hospital District.
3-24 SECTION 2. This Act takes effect September 1, 1997.
3-25 SECTION 3. The importance of this legislation and the
4-1 crowded condition of the calendars in both houses create an
4-2 emergency and an imperative public necessity that the
4-3 constitutional rule requiring bills to be read on three several
4-4 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1824 passed the Senate on
April 17, 1997, by a viva-voce vote; and that the Senate concurred
in House amendment on May 24, 1997, by a viva-voce vote.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1824 passed the House, with
amendment, on May 21, 1997, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor