SRC-JJJ H.B. 1572 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1572
By: Turner, Sylvester (Barrientos)
Health Services
5/2/1999
Engrossed


DIGEST 

Currently, managed care entities often consist of networks of health care
providers.  The 75th Legislature enacted legislation authorizing physicians
and podiatrists to co-own such a network if organized as a professional
association.  However, the law does not permit such co-ownership of a
network that is organized as a limited liability company, a non-profit
corporation, or a partnership. H.B. 1572 authorizes physicians and
podiatrists to organize, manage, and co-own limited liability companies,
non-profit corporations, and partnerships for the purpose of providing
professional health care services.   

PURPOSE

As proposed, H.B. 1572 would establish the authority of physicians and
podiatrists to form certain jointly owned entities and to the authority of
certain medical schools to employ 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 Article 1528n, V.T.C.S., to authorize licensed doctors
of medicine, osteopathy, and podiatrists to organize a professional limited
liability company that is jointly owned by those practitioners to perform a
professional service that falls within the scope of practice of those
practitioners.  Sets forth conditions regarding the authority of doctors
within the limited liability company.  Establishes that the Texas State
Board of Medical Examiners and the Texas State Board of Podiatric Medical
Examiners continue to exercise regulatory authority over their respective
licenses.  Deletes text regarding a professional limited liability company.
Makes conforming and nonsubstantive changes. 

SECTION 2.  Amends Article 1396-2.01, V.T.C.S., by amending Subsection B
and adding Subsections C and D,  to authorize licensed doctors of medicine,
osteopathy, and podiatrists to organize non-profit corporation that is
jointly owned, managed, and controlled by those practitioners to perform a
professional service that falls within the doctor's scope of practice and
consists of certain elements.  Establishes conditions regarding the
authority of each practitioner involved in a jointly owned non-profit
corporation.  Establishes that the Texas State Board of Medical Examiners
and the Texas State Board of Podiatric Medical Examiners continue to
exercise regulatory authority over their respective licenses.  Makes a
conforming change. 

SECTION 3.  Amends Article 6132b-2.02, V.T.C.S., Establishes the authority
of Doctors of Medicine and Osteopathy and Podiatrists to Create
Partnership.  Authorizes licensed doctors of medicine, osteopathy, and
podiatrists to create a partnership that is jointly owned by those
practitioners  to perform a professional service that falls within the
doctors scope of practice. Establishes conditions regarding the authority
of each practitioner involved in a partnership that is created jointly
owned and created by the practitioners.  Establishes that the Texas State
Board of Medical Examiners and the Texas State Board of Podiatric Medical
Examiners continue to exercise regulatory authority over their respective
licenses. 


 SECTION 4.  Amends Subchapter E, 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 establish conditions in order to fulfill its mission. 
 
SECTION 5.  Emergency clause.
            Effective date: upon passage.