SRC-DBM H.B. 3216 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 3216
By: McCall (Cain)
Health Services
5/10/1999
Engrossed


DIGEST 

Currently, physicians in this state are required to complete a
credentialing application for each health care facility with which they
seek or hold or renew an affiliation.  The credentialing effort has
increased significantly as a result of health care reform and recent
changes in the health care delivery and reimbursement system.  Much of the
information regarding physicians is collected, verified, and stored at the
Texas State Board of Medical Examiners as part of the initial licensure
process.  H.B. 3216 would regulate the standardization of credentialing of
physicians.  

PURPOSE

As proposed, H.B. 3216 regulates the standardization of credentialing of
physicians. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas State Board of Medical
Examiners in SECTION 2 (Sections 7.04(c) and 7.07, Article 4495b, V.T.C.S.
(The Medical Practice Act)) of this bill.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Provides that the legislature recognizes that an efficient and
effective credentialing program helps to ensure access to quality health
care and also recognizes that physician credentialing activities have
increased significantly as a result of health care reform and recent
changes in health care delivery and reimbursement systems.  Provides that
the resulting duplication of physician credentialing is unnecessarily
costly and cumbersome for both the practitioner and the entity granting
practice privileges.  Provides that it is therefore, the intent of the
legislature that a mandatory credentials collection program be established
which provides that, once a physician's core credentials data are
collected, validate, maintained, and stored, they need to be collected
again. 

SECTION 2.  Amends Article 4495b, V.T.C.S. (The Medical Practice Act), by
adding Subchapter G, as follows: 

SUBCHAPTER G.  CREDENTIALS VERIFICATION PROGRAM

Sec. 7.01.  DEFINITIONS.  Defines "core credentials data," "credentials
verification organization," "health care entity," and "physician." 

Sec. 7.02.  STANDARDIZED CREDENTIALS VERIFICATION PROGRAM.  Requires the
Texas State Board of Medical Examiners (board), in accordance with the
provisions of this section, to develop standardized forms and guidelines of
collecting, verbifying, maintaining, and storing core credentials data and
for releasing the data to health care entities or to the designated
credentials verification organization authorized by the physician to
receive the data.  Provides that once the core credentials data are
submitted to the board, the physician is not required to resubmit this
initial data when applying for practice privileges with a health care
entity; however, each physician is responsible for providing, within 30
days, corrections, update, and modification to the core credentials data to
the board to ensure that all credentialing data on the physician remains
current, and in addition, physician's data on a form prescribed by the
board. Sets forth the standard forms required to be developed by the board.
Requires any health care entity that employs, contracts with, or
credentials physicians to use the board to obtain core credentials data for
items the board is designated as a primary or alternate source by national
accreditation organization.  Authorizes a health care entity to act through
its designated  credentials verification organization.  Prohibits anything
in this section from being construed to restrict in any way the authority
of a health care entity to approve or deny an application for or renewal of
hospital staff membership, clinical privileges, or managed care network
participation. 

Sec. 7.03.  AVAILABILITY OF DATA COLLECTED.  Requires the board to make
available to a health care entity or its designated credentials
verification organization, all core credential data it collects on a
physician.  Requires this information to be made available within a certain
time period. 

Sec. 7.04.  DUPLICATION OF DATA PROHIBITED.  Provides that a health care
entity is prohibited from collecting or attempting to collect duplicate
core credentials data from a physician, if the information is available
from the board for items the board is designated as a primary or alternate
source by a national accreditation organization.  Provides that nothing in
this section may be construed to restrict the right of a health care entity
to credential the physician.  Authorizes any additional information
required by a health care entity's credentialing process to be collected
from the primary sources of that information, either by the health care
entity or by its designated credential verification organization.
Prohibits a state agency, effective September 1, 2002, from collecting or
attempting to collect duplicate core credentials data from a physician, if
the information is already available from the board. Prohibits anything in
this section from being construed to restrict the right of a state agency
to request additional information not included in the core credentials data
file but deemed necessary for the agency's specific credentialing purposes.
Authorizes the board, by rule, to provide exceptions to the provisions of
Subsections (a) and (b) of this section, if the request for a type of class
of information is necessary in order for a health care entity to provide
temporary privileges during the credentialing process and such information
is available from another state agency.  Authorizes such information to
include licenser verifications. 

Sec. 7.05.  LIABILITY.  Prohibits any civil, criminal, or administrative
action from being instituted, and there being any liability, against any
health care entity or its designated credentials verification organization,
because of the health care entity's or verification organization's reliance
on any data obtained from the board under this subchapter. 

Sec. 7.06.  REVIEW.  Requires the board, before releasing a physician's
core credentials data from its data bank for the first time, to provide the
physician 15 business days to review the data and request reconsideration
or resolution of errors in, or omissions of , data collected during the
initial credentials verification process.  Requires any changes, comments,
or clarifications made by the physician to be noted and included with the
information in the core credentials data. Requires the board to notify a
physician of any subsequent changes to the core credentials data when such
changes are made or initiated by a person other than the physician.
Authorizes a physician to request to review the data collected at any time
after the initial release of information, but such request does not require
the board to hold, release, or modify any information. 

Sec. 7.07.  RULES.  Requires the board to adopt rules necessary to develop
and implement the standardized credentials verification program established
by this subchapter. 

Sec. 7.08.  CONFIDENTIALITY.  Provides that the information received,
collected, maintained, or stored by the board is proprietary information
and is privileged and confidential and cannot be released. 

Sec. 7.09.  USE OF INDEPENDENT CONTRACTOR.  Authorizes the board to provide
for the collecting, verifying, maintaining, storing, and releasing of
information through an independent contractor.  Requires any agreement
between the board and such contractor to provide for board oversight and
confidentiality and to be awarded through a competitive bid process. 

Sec. 7.10.  APPROPRIATIONS, GRANTS, AND DONATIONS.  Authorizes the board,
in addition to any fees paid to the board or funds appropriated to the
board, to receive and accept gifts, grants, donations, and any other type
of funds or things of value from any source. 

 Sec. 7.11.  FEES.  Requires the board to charge and collect fees only in
amounts necessary to cover the cost of operating and administering the
board's duties and functions under this subchapter.  Authorizes the board
to waive the fee for a state agency that is required to use the core
credentials data and that is prohibited from collecting duplicate data by
Section 7.04 of this Act. 

SECTION 3. Requires the board to implement the credential verification
program under Subchapter G, Medical Practice Act (Article 4495b, V.T.C.S.)
as added by this Act, only if the legislature appropriates money
specifically for that purpose.  Authorizes the board, but is not required
to, to implement the credentials verification program using other
appropriations, gifts, grants, or donations available for that purpose, if
the legislature does not appropriate money specifically for that purpose. 

SECTION 4.  Requires the board to make available the credentials required
by Subchapter G, Medical Practice Act (Article 4495b, V.T.C.S.), as added
by this Act, starting no sooner than September 1, 2001. Provides that a
health care entity is not required to use the board's core credentials data
until such data is available from the board and the board is designated as
a primary or alternate source by a national accreditation organization. 

SECTION 5.Effective date: September 1, 1999.

SECTION 6.Emergency clause.