SRC-DPW H.B. 1491 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1491
76R4086 JMM-FBy: Hochberg (Ellis)
Health Services
5/2/1999
Engrossed


DIGEST 

Currently, the Internal Revenue Service requires medical school faculty
physicians to be treated as employees for federal income tax purposes.
Current state law prohibits the corporate practice of medicine, in effect
prohibiting private medical schools from employing faculty physicians.
This situation presents a dilemma for the Baylor College of Medicine, the
only private medical school in Texas.  This bill would authorize an
accredited private medical school to employ its faculty physicians for
clinical practice activities. 

PURPOSE

As proposed, H.B. 1491 authorizes private medical schools to employ certain
physicians. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter E, Medical Practice Act, Article 4495b,
V.T.C.S., by adding Section 5.12, as follows: 

Sec. 5.12. EMPLOYMENT OF PHYSICIANS BY PRIVATE MEDICAL SCHOOL. Authorizes a
private medical school accredited by the Liaison Committee on Medical
Education, to employ or contract for the services of physicians to provide
medical services and retain all or part of the professional income
generated by a physician providing medical services under Subdivision (l). 

SECTION 2.Emergency clause.
  Effective date: upon passage.