1-1     By:  Luna, Seaman, Capelo, et al.                     H.B. No. 2171
 1-2          (Senate Sponsor - Truan)
 1-3           (In the Senate - Received from the House April 26, 1999;
 1-4     April 27, 1999, read first time and referred to Committee on Health
 1-5     Services; May 13, 1999, reported adversely, with favorable
 1-6     Committee Substitute by the following vote:  Yeas 4, Nays 0;
 1-7     May 13, 1999, sent to printer.)
 1-8     COMMITTEE SUBSTITUTE FOR H.B. No. 2171                By:  Moncrief
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to the establishment and operation of a medical committee
1-12     or medical peer review committee by certain public and private
1-13     entities.
1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15           SECTION 1.  Section 1.03(a)(5), Medical Practice Act (Article
1-16     4495b, Vernon's Texas Civil Statutes), is amended to read as
1-17     follows:
1-18                 (5)  "Health-care entity" means:
1-19                       (A)  a hospital that is licensed pursuant to
1-20     Chapter 241 or 577, Health and Safety Code [or the Texas Mental
1-21     Health Code (Articles 5547-88 through 5547-100, Vernon's Texas
1-22     Civil Statutes)];
1-23                       (B)  an entity, including a health maintenance
1-24     organization, group medical practice, nursing home, health science
1-25     center, university medical school, hospital district, hospital
1-26     authority, or other health-care facility, that provides or pays for
1-27     medical or health-care services and that follows a formal peer
1-28     review process for the purposes of furthering quality medical or
1-29     health care;
1-30                       (C)  a professional society or association, or
1-31     committee thereof, of physicians that follows a formal peer review
1-32     process for the purpose of furthering quality medical or health
1-33     care; and
1-34                       (D)  an organization established by a
1-35     professional society or association of physicians or of hospitals,
1-36     or both, that collects and verifies the authenticity of documents
1-37     and other data concerning the qualifications, competence, or
1-38     performance of licensed health care professionals and that acts as
1-39     a health care facility's agent pursuant to the Health Care Quality
1-40     Improvement Act of 1986, Title IV, Pub. L. 99-660 (42 U.S.C.
1-41     Section 11101 et seq.).
1-42           SECTION 2.  Section 5.06, Medical Practice Act (Article
1-43     4495b, Vernon's Texas Civil Statutes), is amended by adding
1-44     Subsection (v) to read as follows:
1-45           (v)  This section does not impose liability or waive immunity
1-46     for a hospital district or hospital authority that has common-law,
1-47     statutory, or other immunity.
1-48           SECTION 3.  Section 161.031(a), Health and Safety Code, is
1-49     amended to read as follows:
1-50           (a)  In this subchapter, "medical committee" includes any
1-51     committee, including a joint committee, of:
1-52                 (1)  a hospital;
1-53                 (2)  a medical organization;
1-54                 (3)  a university medical school or health science
1-55     center;
1-56                 (4)  a health maintenance organization licensed under
1-57     the Texas Health Maintenance Organization Act (Chapter 20A,
1-58     Vernon's Texas Insurance Code), including an independent practice
1-59     association or other physician association whose committees or
1-60     joint committee is a condition of contract with the health
1-61     maintenance organization; [or]
1-62                 (5)  an extended care facility;
1-63                 (6)  a hospital district; or
1-64                 (7)  a hospital authority.
 2-1           SECTION 4.  Sections 161.032(a) and (c), Health and Safety
 2-2     Code are amended to read as follows:
 2-3           (a)  The records and proceedings of a medical committee are
 2-4     confidential and are not subject to court subpoena.  A proceeding
 2-5     of a medical peer review committee, as defined by Section 1.03,
 2-6     Medical Practice Act (Article 4495b, Vernon's Texas Civil Statutes)
 2-7     or medical committee, or a meeting of the governing body of a
 2-8     public hospital, hospital district, or hospital authority at which
 2-9     the governing body receives records, information, or reports
2-10     provided by a medical committee or medical peer review committee is
2-11     not subject to Chapter 551, Government Code.  Records, information,
2-12     or reports of a medical committee or medical peer review committee
2-13     and records, information, or reports provided by a medical
2-14     committee or medical peer review committee to the governing body of
2-15     a public hospital, hospital district, or hospital authority are not
2-16     subject to disclosure under Chapter 552, Government Code.
2-17           (c)  This section and Section 5.06, Medical Practice
2-18     [Practices] Act (Article 4495b, Vernon's Texas Civil Statutes), do
2-19     not apply to records made or maintained in the regular course of
2-20     business by a hospital, health maintenance organization, medical
2-21     organization, university medical center or health science center,
2-22     hospital district, hospital authority, or extended care facility.
2-23           SECTION 5.  The subchapter heading of Subchapter D, Chapter
2-24     161, Health and Safety Code, is amended to read as follows:
2-25               SUBCHAPTER D.  [RECORDS OF AND IMMUNITIES FOR]
2-26               MEDICAL COMMITTEES AND MEDICAL PEER REVIEW COMMITTEES
2-27           SECTION 6.  Subchapter D, Chapter 161, Health and Safety
2-28     Code, is amended by adding Section 161.0315 to read as follows:
2-29           Sec. 161.0315.  AUTHORITY OF GOVERNING BODY TO FORM COMMITTEE
2-30     TO EVALUATE MEDICAL AND HEALTH CARE SERVICES.  (a)  The governing
2-31     body of a hospital, medical organization, university medical school
2-32     or health science center, health maintenance organization, extended
2-33     care facility, hospital district, or hospital authority may form a
2-34     medical peer review committee, as defined by Section 1.03, Medical
2-35     Practice Act (Article 4495b, Vernon's Texas Civil Statutes), or a
2-36     medical committee, as defined by Section 161.031, to evaluate
2-37     medical and health care services, except as provided by this
2-38     section.
2-39           (b)  Except as provided by Subsection (d), a medical peer
2-40     review committee or medical committee formed by the governing body
2-41     of a hospital district may not evaluate medical and health care
2-42     services provided by a health care facility that:
2-43                 (1)  contracts with the district to provide those
2-44     services; and
2-45                 (2)  has formed a medical peer review committee or
2-46     medical committee to evaluate the services provided by the
2-47     facility.
2-48           (c)  A hospital district may require in a contract with a
2-49     health care facility described by subsection (b) a provision that
2-50     allows the governing body of the district to appoint a specified
2-51     number of members to the facility's medical peer review committee
2-52     or medical committee to evaluate medical and health care services
2-53     for which the district contracts with the facility to provide.  The
2-54     governing body of a hospital district may receive a report from the
2-55     facility's medical per review committee or medical committee under
2-56     this section in a closed meeting.  A report, information, or a
2-57     record that the district receives from the facility related to a
2-58     review action conducted under the terms of the contract is:
2-59                 (1)  confidential;
2-60                 (2)  not subject to disclosure under Chapter 552,
2-61     Government Code; and
2-62                 (3)  subject to the same confidentiality and disclosure
2-63     requirements to which a report, information, or record of a medical
2-64     peer review committee under Section 5.06(s), Medical Practice Act
2-65     (Article 4495b, Vernon's Texas Civil Statutes) is subject.
2-66           (d)  If a hospital district and a health care facility
2-67     described by Subsection (b) do not agree on a contract provision
2-68     described by Subsection (c), the hospital district has, with
2-69     respect to a review action for the evaluation of medical and health
 3-1     care services provided by the facility under a contract with the
 3-2     district, a right to:
 3-3                 (1)  initiate the review action;
 3-4                 (2)  appoint from the medical staff of the facility a
 3-5     number of members to the facility's medical peer review committee
 3-6     or medical committee equal to the number of members appointed to
 3-7     the committee by the facility to conduct the review action,
 3-8     without regard to whether the district initiates the action; and
 3-9                 (3)  receive records, information, or reports from the
3-10     medical peer review committee or medical committee related to the
3-11     review action.
3-12           (e)  The governing body of a hospital district may receive a
3-13     report under Subsection (d)(3) in a closed meeting.  A report,
3-14     information, or a record that the hospital district receives under
3-15     Subsection (d)(3) is:
3-16                 (1)  confidential;
3-17                 (2)  not subject to disclosure under Chapter 552,
3-18     Government Code; and
3-19                 (3)  subject to the same confidentiality and disclosure
3-20     requirements to which a report, information, or record of a medical
3-21     peer review committee under Section 5.06(s), Medical Practice Act
3-22     (Article 4495b, Vernon's Texas Civil Statutes) is subject.
3-23           SECTION 7.  The importance of this legislation and the
3-24     crowded condition of the calendars in both houses create an
3-25     emergency and an imperative public necessity that the
3-26     constitutional rule requiring bills to be read on three several
3-27     days in each house be suspended, and this rule is hereby suspended,
3-28     and that this Act take effect and be in force from and after its
3-29     passage, and it is so enacted.
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