SRC-ARR S.B. 871 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 871
By: Barrientos
Health Services
3/29/1999
As Filed


DIGEST 

Currently, health care services are often provided to consumers through
managed care entities, which include networks of providers such as
physicians and podiatrists. In 1997, the 75th Legislature passed a bill
authorizing physicians and podiatrists to co-own such networks,  if they
are organized as a professional association. However, the law does not
permit such co-ownership if the network is organized as a limited liability
company, a nonprofit corporation, or a partnership. S.B. 871 would allow
physicians to organize, manage, and co-own limited liability companies,
nonprofit corporations, or  partnerships. 

PURPOSE

As proposed, S.B. 871 authorizes co-ownership of certain entities by
physicians and podiatrists.  

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 Section 6, Article 6132b, V.T.C.S. (Texas Uniform
Partnership Act), by adding Paragraph (4), to authorize doctors of medicine
and osteopathy licensed by the Texas State Board of Medical Examiners
(TSBME) and podiatrists licensed by the Texas State Board of Podiatric
Medical Examiners (TSBPME) to from a partnership under this Act to perform
professional services that fall within the scope of their respective
practice. Prohibits certain partners from exercising control over the
clinical authority granted by another through certain agreements that would
grant control over treatment decisions made by another partner, when
certain doctors form partnerships under this Act. Provides that the TSBME
and TSBPME retain their regulatory authority over the partners' licenses. 

SECTION 2. Amends Article 11.01, Article 1528n, V.T.C.S. (Texas Limited
Liability Company Act), by adding Section C, to authorize certain doctors
of medicine and osteopathy and podiatrists licensed under their respective
boards to organized a professional limited liability company under this Act
to perform professional services that fall within the scope of their
respective practices. Prohibits a practitioner from exercising control over
the clinical authority granted by another practitioner's license, through
certain agreements that would grant control over treatment decisions made
by another practitioner. 

SECTION 3. Amends Article 2.01, Article 1396-2.01, V.T.C.S. (Texas
Non-Profit Corporation Act), by adding Section C, to authorize certain
doctors of medicine and osteopathy and podiatrists licensed under their
respective boards to form a nonprofit corporation  under this Act to
perform professional services that fall within the scope of their
respective practices and that is organized to carry out certain actions.
Limits the authority of the practitioners by the scope of the
practitioner's practice, and no practitioner can exercise control over the
clinical authority granted by another practitioner's license. Provides that
TSBME and TSBPE retain their regulatory authority over the practitioner's
licenses. Makes a conforming change. 

SECTION 4. Emergency clause.
                      Effective date: upon passage.