1-1                                   AN ACT
 1-2     relating to the establishment and operation of a medical committee
 1-3     or medical peer review committee by certain public and private
 1-4     entities.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Section 1.03(a)(5), Medical Practice Act (Article
 1-7     4495b, Vernon's Texas Civil Statutes), is amended to read as
 1-8     follows:
 1-9                 (5)  "Health-care entity" means:
1-10                       (A)  a hospital that is licensed pursuant to
1-11     Chapter 241 or 577, Health and Safety Code [or the Texas Mental
1-12     Health Code (Articles 5547-88 through 5547-100, Vernon's Texas
1-13     Civil Statutes)];
1-14                       (B)  an entity, including a health maintenance
1-15     organization, group medical practice, nursing home, health science
1-16     center, university medical school, hospital district, hospital
1-17     authority, or other health-care facility, that provides or pays for
1-18     medical or health-care services and that follows a formal peer
1-19     review process for the purposes of furthering quality medical or
1-20     health care;
1-21                       (C)  a professional society or association, or
1-22     committee thereof, of physicians that follows a formal peer review
1-23     process for the purpose of furthering quality medical or health
1-24     care; and
 2-1                       (D)  an organization established by a
 2-2     professional society or association of physicians or of hospitals,
 2-3     or both, that collects and verifies the authenticity of documents
 2-4     and other data concerning the qualifications, competence, or
 2-5     performance of licensed health care professionals and that acts as
 2-6     a health care facility's agent pursuant to the Health Care Quality
 2-7     Improvement Act of 1986, Title IV, Pub. L. 99-660 (42 U.S.C.
 2-8     Section 11101 et seq.).
 2-9           SECTION 2.  Section 5.06, Medical Practice Act (Article
2-10     4495b, Vernon's Texas Civil Statutes), is amended by adding
2-11     Subsection (v) to read as follows:
2-12           (v)  This section does not impose liability or waive immunity
2-13     for a hospital district or hospital authority that has common-law,
2-14     statutory, or other immunity.
2-15           SECTION 3.  Section 161.031(a), Health and Safety Code, is
2-16     amended to read as follows:
2-17           (a)  In this subchapter, "medical committee" includes any
2-18     committee, including a joint committee, of:
2-19                 (1)  a hospital;
2-20                 (2)  a medical organization;
2-21                 (3)  a university medical school or health science
2-22     center;
2-23                 (4)  a health maintenance organization licensed under
2-24     the Texas Health Maintenance Organization Act (Chapter 20A,
2-25     Vernon's Texas Insurance Code), including an independent practice
2-26     association or other physician association whose committee or joint
2-27     committee is a condition of contract with the health maintenance
 3-1     organization; [or]
 3-2                 (5)  an extended care facility;
 3-3                 (6)  a hospital district; or
 3-4                 (7)  a hospital authority.
 3-5           SECTION 4.  Sections 161.032(a) and (c), Health and Safety
 3-6     Code, are amended to read as follows:
 3-7           (a)  The records and proceedings of a medical committee are
 3-8     confidential and are not subject to court subpoena.  A proceeding
 3-9     of a medical peer review committee, as defined by Section 1.03,
3-10     Medical Practice Act (Article 4495b, Vernon's Texas Civil
3-11     Statutes), or medical committee, or a meeting of the governing body
3-12     of a public hospital, hospital district, or hospital authority at
3-13     which the governing body receives records, information, or reports
3-14     provided by a medical committee or medical peer review committee is
3-15     not subject to Chapter 551, Government Code.  Records, information,
3-16     or reports of a medical committee or medical peer review committee
3-17     and records, information, or reports provided by a medical
3-18     committee or medical peer review committee to the governing body of
3-19     a public hospital, hospital district, or hospital authority are not
3-20     subject to disclosure under Chapter 552, Government Code.
3-21           (c)  This section and Section 5.06, Medical Practice
3-22     [Practices] Act (Article 4495b, Vernon's Texas Civil Statutes), do
3-23     not apply to records made or maintained in the regular course of
3-24     business by a hospital, health maintenance organization, medical
3-25     organization, university medical center or health science center,
3-26     hospital district, hospital authority, or extended care facility.
3-27           SECTION 5.  The subchapter heading of Subchapter D, Chapter
 4-1     161, Health and Safety Code, is amended to read as follows:
 4-2               SUBCHAPTER D.  [RECORDS OF AND IMMUNITIES FOR]
 4-3            MEDICAL COMMITTEES AND MEDICAL PEER REVIEW COMMITTEES
 4-4           SECTION 6.  Subchapter D, Chapter 161, Health and Safety
 4-5     Code, is amended by adding Section 161.0315 to read as follows:
 4-6           Sec. 161.0315.  AUTHORITY OF GOVERNING BODY TO FORM COMMITTEE
 4-7     TO EVALUATE MEDICAL AND HEALTH CARE SERVICES.  (a)  The governing
 4-8     body of a hospital, medical organization, university medical school
 4-9     or health science center, health maintenance organization, extended
4-10     care facility, hospital district, or hospital authority may form a
4-11     medical peer review committee, as defined by Section 1.03, Medical
4-12     Practice Act (Article 4495b, Vernon's Texas Civil Statutes), or a
4-13     medical committee, as defined by Section 161.031, to evaluate
4-14     medical and health care services, except as provided by this
4-15     section.
4-16           (b)  Except as provided by Subsection (d), a medical peer
4-17     review committee or medical committee formed by the governing body
4-18     of a hospital district may not evaluate medical and health care
4-19     services provided by a health care facility that:
4-20                 (1)  contracts with the district to provide those
4-21     services; and
4-22                 (2)  has formed a medical peer review committee or
4-23     medical committee to evaluate the services provided by the
4-24     facility.
4-25           (c)  A hospital district may require in a contract with a
4-26     health care facility described by Subsection (b) a provision that
4-27     allows the governing body of the district to appoint a specified
 5-1     number of members to the facility's medical peer review committee
 5-2     or medical committee to evaluate medical and health care services
 5-3     for which the district contracts with the facility to provide.  The
 5-4     governing body of a hospital district may receive a report from the
 5-5     facility's medical peer review committee or medical committee under
 5-6     this section in a closed meeting.  A report, information, or a
 5-7     record that the district receives from the facility related to a
 5-8     review action conducted under the terms of the contract is:
 5-9                 (1)  confidential;
5-10                 (2)  not subject to disclosure under Chapter 552,
5-11     Government Code; and
5-12                 (3)  subject to the same confidentiality and disclosure
5-13     requirements to which a report, information, or record of a medical
5-14     peer review committee under Section 5.06(s), Medical Practice Act
5-15     (Article 4495b, Vernon's Texas Civil Statutes), is subject.
5-16           (d)  If a hospital district and a health care facility
5-17     described by Subsection (b) do not agree on a contract provision
5-18     described by Subsection (c), the hospital district has, with
5-19     respect to a review action for the evaluation of medical and health
5-20     care services provided by the facility under a contract with the
5-21     district, a right to:
5-22                 (1)  initiate the review action;
5-23                 (2)  appoint from the medical staff of the facility a
5-24     number of members to the facility's medical peer review committee
5-25     or medical committee equal to the number of members appointed to
5-26     the committee by the facility to conduct the review action,
5-27     without regard to whether the district initiates the action; and
 6-1                 (3)  receive records, information, or reports from the
 6-2     medical peer review committee or medical committee related to the
 6-3     review action.
 6-4           (e)  The governing body of a hospital district may receive a
 6-5     report under Subsection (d)(3) in a closed meeting.  A report,
 6-6     information, or a record that the hospital district receives under
 6-7     Subsection (d)(3) is:
 6-8                 (1)  confidential;
 6-9                 (2)  not subject to disclosure under Chapter 552,
6-10     Government Code; and
6-11                 (3)  subject to the same confidentiality and disclosure
6-12     requirements to which a report, information, or record of a medical
6-13     peer review committee under Section 5.06(s), Medical Practice Act
6-14     (Article 4495b, Vernon's Texas Civil Statutes), is subject.
6-15           SECTION 7.  The importance of this legislation and the
6-16     crowded condition of the calendars in both houses create an
6-17     emergency and an imperative public necessity that the
6-18     constitutional rule requiring bills to be read on three several
6-19     days in each house be suspended, and this rule is hereby suspended,
6-20     and that this Act take effect and be in force from and after its
6-21     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 2171 was passed by the House on April
         23, 1999, by the following vote:  Yeas 141, Nays 0, 2 present, not
         voting; and that the House concurred in Senate amendments to H.B.
         No. 2171 on May 21, 1999, by the following vote:  Yeas 142, Nays 0,
         1 present, not voting.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 2171 was passed by the Senate, with
         amendments, on May 19, 1999, by the following vote:  Yeas 29, Nays
         0.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  _____________________
                            Date
                    _____________________
                          Governor