By Shapleigh S.B. No. 1824
75R8026 SAW-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the formation of an integrated health care system by a
1-3 hospital district and a public medical school.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter C, Chapter 281, Health and Safety
1-6 Code, is amended by adding Section 281.0517 to read as follows:
1-7 Sec. 281.0517. INTEGRATED HEALTH CARE SYSTEM. (a) In this
1-8 section:
1-9 (1) "Integrated health care system" means a nonprofit
1-10 corporation established and operated by a district and a public
1-11 medical school to provide or arrange for comprehensive health care
1-12 services for residents of the district.
1-13 (2) "Provider" means a physician or a provider as
1-14 defined under Section 2, Texas Health Maintenance Organization Act
1-15 (Article 20A.02, Vernon's Texas Insurance Code).
1-16 (3) "Public medical school" means an accredited
1-17 medical school established and maintained by a state university for
1-18 the education and training of medical doctors or doctors of
1-19 osteopathy.
1-20 (b) A district and a public medical school may establish and
1-21 operate an integrated health care system.
1-22 (c) To provide or arrange for comprehensive health care
1-23 services, an integrated health care system may:
1-24 (1) own, acquire, lease, or contract for all necessary
2-1 assets;
2-2 (2) enter into contracts with providers for the
2-3 provision of health care services directly or indirectly through
2-4 subcontract;
2-5 (3) provide or enter into a contract with an
2-6 individual or business entity under which the individual or entity
2-7 provides necessary administrative services for the system and the
2-8 system's providers;
2-9 (4) enter into a contract or other agreement with a
2-10 business or governmental entity under which the system is paid to
2-11 provide health care services; and
2-12 (5) enter into a fee-for-service, capitated, or
2-13 risk-sharing health care service arrangement.
2-14 (d) An integrated health care system created under this
2-15 section is:
2-16 (1) subject to:
2-17 (A) Chapter 551, Government Code;
2-18 (B) Chapter 552, Government Code;
2-19 (C) the Texas Health Maintenance Organization
2-20 Act (Chapter 20A, Vernon's Texas Insurance Code); and
2-21 (D) Article 21.52F, Insurance 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 may hold a closed meeting to deliberate:
2-26 (1) pricing or financial planning relating to a bid or
2-27 negotiation for a contract to provide a service or product line, if
3-1 an open meeting would have a detrimental effect on the position of
3-2 the system in the bid or negotiation process; or
3-3 (2) a proposed new service or product line, if the
3-4 meeting is held before public announcement of the service or
3-5 product line.
3-6 (f) Notwithstanding Subsection (d)(1)(B), information
3-7 relating to the following is confidential and not subject to
3-8 disclosure:
3-9 (1) pricing or financial planning relating to a bid or
3-10 negotiation for a contract to provide a service or product line, if
3-11 disclosure would have a detrimental effect on the position of the
3-12 system in the bid or negotiation process; or
3-13 (2) a proposed new service or product line, if
3-14 disclosure is requested before public announcement of the service
3-15 or product line.
3-16 SECTION 2. This Act takes effect September 1, 1997.
3-17 SECTION 3. The importance of this legislation and the
3-18 crowded condition of the calendars in both houses create an
3-19 emergency and an imperative public necessity that the
3-20 constitutional rule requiring bills to be read on three several
3-21 days in each house be suspended, and this rule is hereby suspended.