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.