By McCall                                             H.B. No. 3216
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the standardization of credentialing of physicians.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  The legislature recognizes that an efficient and
 1-5     effective credentialing program helps to ensure access to quality
 1-6     health care and also recognizes that physician credentialing
 1-7     activities have increased significantly as a result of health care
 1-8     reform and recent changes in health care delivery and reimbursement
 1-9     systems.  Moreover, the resulting duplication of physician
1-10     credentialing activities is unnecessarily costly and cumbersome for
1-11     both the practitioner and the entity granting practice privileges.
1-12     Therefore, it is the intent of the legislature that a mandatory
1-13     credentials collection program be established which provides that,
1-14     once a physician's core credentials data are collected, validated,
1-15     maintained, and stored they need not be collected again.
1-16           SECTION 2.  The Medical Practice Act (Article 4495b, Vernon's
1-17     Texas Civil Statutes) is amended by adding Subchapter G to read as
1-18     follows:
1-19               SUBCHAPTER G.  CREDENTIALS VERIFICATION PROGRAM
1-20           Sec. 7.01.  DEFINITIONS.  In this subchapter:
1-21                 (1)  "Core credentials data" means the following data:
1-22                       (A)  identity information;
1-23                       (B)  all professional education;
1-24                       (C)  all professional training;
 2-1                       (D)  licensure from Texas and other states or
 2-2     jurisdictions of the United States; and
 2-3                       (E)  Educational Commission for Foreign Medical
 2-4     Graduates  certification.
 2-5                 (2)  "Credentials verification organization" means any
 2-6     organization certified or accredited as a credentials verification
 2-7     organization for the express purpose of collecting, verifying,
 2-8     maintaining, storing, and providing to health care entities a
 2-9     health care practitioner's verified credentials data, including all
2-10     corrections, updates, and modifications to such data, as authorized
2-11     by the physician.  For the purposes of this subdivision,
2-12     "certified" or "accredited" shall include nationally recognized
2-13     accreditation organizations.
2-14                 (3)  "Health care entity" means:
2-15                       (A)  any health care facility or other health
2-16     care organization licensed or certified to provide approved medical
2-17     and allied health services in Texas;
2-18                       (B)  any entity licensed by the Texas Department
2-19     of Insurance as a prepaid health care plan or health maintenance
2-20     organization or as an insurer to provide coverage for health care
2-21     services through a network of providers; or
2-22                       (C)  any health care provider entity accepting a
2-23     delegated credentialing function from a health maintenance
2-24     organization.
2-25                 (4)  "Physician" means any person licensed or applying
2-26     for licensure under this Act based on the person's doctor of
2-27     medicine or doctor of an osteopathy degree.
 3-1           Sec. 7.02.  STANDARDIZED CREDENTIALS VERIFICATION PROGRAM.
 3-2     (a)  In accordance with the provisions of this section, the board
 3-3     shall develop standardized forms and guidelines for collecting,
 3-4     verifying, maintaining, and storing core credentials data and for
 3-5     releasing the data to health care entities or to the designated
 3-6     credentials verification organization authorized by the physician
 3-7     to receive the data.  Once the core credentials data are submitted
 3-8     to the board, the physician is not required to resubmit this
 3-9     initial data when applying for practice privileges with a health
3-10     care entity.  However, each physician is responsible for providing
3-11     to the board within 30 days any corrections, updates, and
3-12     modifications to the core credentials data to ensure that all
3-13     credentialing data on the physician remains current.  In addition,
3-14     physician's data on a form prescribed by the board.
3-15           (b)  The board shall develop standard forms for:
3-16                 (1)  initial reporting of core credentials data;
3-17                 (2)  authorizing release of core credentials data; and
3-18                 (3)  subsequent reporting of corrections, updates, and
3-19     modifications.
3-20           (c)  Any health care entity that employs, contracts with, or
3-21     credentials physicians must use the board to obtain core
3-22     credentials data for items the board is designated as a primary or
3-23     alternate source by a national accreditation organization.  A
3-24     health care entity may act through its designated credentials
3-25     verification organization.
3-26           (d)  Nothing in this section may be construed to restrict in
3-27     any way the authority of a health care entity to approve or deny an
 4-1     application for or renewal of hospital staff membership, clinical
 4-2     privileges, or managed care network participation.
 4-3           Sec. 7.03.  AVAILABILITY OF DATA COLLECTED.  The board shall
 4-4     make available to a health care entity or its designated
 4-5     credentials verification organization all core credentials data it
 4-6     collects on a physician, including corrections, updates, and
 4-7     modifications to the data, if authorized by the physician.  This
 4-8     information shall be made available within 15 business days of the
 4-9     receipt of the request.
4-10           Sec. 7.04.  DUPLICATION OF DATA PROHIBITED.  (a)  A health
4-11     care entity is prohibited from collecting or attempting to collect
4-12     duplicate core credentials data from a physician if the information
4-13     is available from the board for items the board is designated as a
4-14     primary or alternate source by a national accreditation
4-15     organization.  Nothing in this section may be construed to restrict
4-16     the right of a health care entity to request additional information
4-17     not included in the core credentials data file that is necessary in
4-18     order for the health care entity to credential the physician.  Any
4-19     additional information required by the health care entity's
4-20     credentialing process may be collected from the primary sources of
4-21     that information either by the health care entity or by its
4-22     designated credentials verification organization.
4-23           (b)  Effective September 1, 2002, a state agency may not
4-24     collect or attempt to collect duplicate core credentials data from
4-25     a physician if the information is already available from the board.
4-26     Nothing in this section may be construed to restrict the right of a
4-27     state agency to request additional information not included in the
 5-1     core credentials data file but deemed necessary for the agency's
 5-2     specific credentialing purposes.
 5-3           (c)  The board by rule may provide exceptions to the
 5-4     provisions of Subsections (a) and (b) of this section if the
 5-5     request for a type or class of information is necessary in order
 5-6     for a health care entity to provide temporary privileges during the
 5-7     credentialing process and such information is available from
 5-8     another state agency.  Such information may include licenser
 5-9     verifications.
5-10           Sec. 7.05.  LIABILITY.  No civil, criminal, or administrative
5-11     action may be instituted, and there shall be no liability, against
5-12     any health care entity or its designated credentials verification
5-13     organization because of the health care entity's or verification
5-14     organization's reliance on any data obtained from the board under
5-15     this subchapter.
5-16           Sec. 7.06.  REVIEW.  Before releasing a physician's core
5-17     credentials data from its data bank for the first time, the board
5-18     shall provide the physician 15 business days to review the data and
5-19     request reconsideration or resolution of errors in, or omissions
5-20     of, data collected during the initial credentials verification
5-21     process.  Any changes, comments, or clarifications made by the
5-22     physician shall be noted and included with the information in the
5-23     core credentials data.  The board shall notify the physician of any
5-24     subsequent changes to the core credentials data when such changes
5-25     are made or initiated by a person other than the physician.  A
5-26     physician may request to review the data collected at any time
5-27     after the initial release of information, but such request does not
 6-1     require the board to hold, release, or modify any information.
 6-2           Sec. 7.07.  RULES.  The board shall adopt rules necessary to
 6-3     develop and implement the standardized credentials verification
 6-4     program established by this subchapter.
 6-5           Sec. 7.08.  CONFIDENTIALITY.  The information received,
 6-6     collected, maintained, or stored by the board is proprietary
 6-7     information and is privileged and confidential and cannot be
 6-8     released, including by discovery or subpoena, except as provided by
 6-9     this subchapter or otherwise authorized by law.
6-10           Sec. 7.09.  USE OF INDEPENDENT CONTRACTOR.  The board may
6-11     provide for the collecting, verifying, maintaining, storing, and
6-12     releasing of information through an independent contractor.  Any
6-13     agreement between the board and such contractor shall provide for
6-14     board oversight and confidentiality and be awarded through a
6-15     competitive bid process.
6-16           Sec. 7.10.  APPROPRIATIONS, GRANTS, AND DONATIONS.  In
6-17     addition to any fees paid to the board or funds appropriated to the
6-18     board, the board may receive and accept gifts, grants, donations,
6-19     and any other type of funds or things of value from any source,
6-20     including the United States government and any private source.
6-21           Sec. 7.11.  FEES.  The board shall charge and collect fees
6-22     only in amounts necessary to cover the cost of operating and
6-23     administering the board's duties and functions under this
6-24     subchapter.  The board may waive a fee for a state agency that is
6-25     required to use the core credentials data and that is prohibited
6-26     from collecting duplicate data by Section 7.04 of this Act.
6-27           SECTION 3.  The Texas State Board of Medical Examiners is
 7-1     required to implement the credentials verification program under
 7-2     Subchapter G, Medical Practice Act (Article 4495b, Vernon's Texas
 7-3     Civil States), as added by this Act, only if the legislature
 7-4     appropriates money specifically for that purpose.  If the
 7-5     legislature does not appropriate money specifically for that
 7-6     purpose, the board may, but is not required to, implement the
 7-7     credentials verification program using other appropriations, gifts,
 7-8     grants, or donations available for that purpose.
 7-9           SECTION 4.  The Texas State Board of Medical Examiners shall
7-10     make available the credentials reports required by Subchapter G,
7-11     Medical Practice Act (Article 4495b, Vernon's Texas Civil
7-12     Statutes), as added by this Act, starting not sooner than September
7-13     1, 2001.  A health care entity is not required to use the board's
7-14     core credentials data until such data is available from the board
7-15     and the board is designated as a primary or alternate source by a
7-16     national accreditation organization.
7-17           SECTION 5.  This Act takes effect September 1, 1999.
7-18           SECTION 6.  The importance of this legislation and the
7-19     crowded condition of the calendars in both houses create an
7-20     emergency and an imperative public necessity that the
7-21     constitutional rule requiring bills to be read on three several
7-22     days in each house be suspended, and this rule is hereby suspended.