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


Senate Research CenterC.S.H.B. 1572
By: Turner, Sylvester (Barrientos)
Health Services
5/5/1999
Committee Report (Substituted)


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. C.S.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, C.S.H.B. 1572 would establish the authority of physicians and
podiatrists to form certain jointly owned entities. 

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 Subsection A, 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 a 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., to 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 doctor's scope of practice.  Establishes
conditions regarding the authority of each practitioner involved in a
partnership that is 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.  Emergency clause.
            Effective date: upon passage.

SUMMARY OF COMMITTEE CHANGES

Relating clause.

Deletes the phrase "and to the authority of certain medical schools to
employ physicians" from the relating clause. 

SECTION 4.  

Deletes proposed SECTION 4 regarding employment of physicians by private
medical schools.  Renumbers subsequent SECTION.