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 physician credentialing program helps to ensure access to 1-6 quality health care and also recognizes that physician 1-7 credentialing activities have increased significantly as a result 1-8 of health care reform and recent changes in health care delivery 1-9 and reimbursement systems. Moreover, the resulting duplication of 1-10 physician credentialing activities is unnecessarily costly and 1-11 cumbersome for both the practitioner and the entity granting 1-12 practice privileges. Therefore, it is the intent of the 1-13 legislature that a mandatory credentials collection program be 1-14 established which provides that once a physician's core credentials 1-15 data are collected, validated, maintained, and stored they need not 1-16 be collected again. 1-17 SECTION 2. The Medical Practice Act (Article 4495b, Vernon's 1-18 Texas Civil Statutes) is amended by adding Subchapter G to read as 1-19 follows: 1-20 SUBCHAPTER G. PHYSICIAN CREDENTIALING 1-21 Sec. 7.01. DEFINITIONS. In this subchapter: 1-22 (1) "Core credentials data" means: 1-23 (A) name and other demographic data; 1-24 (B) professional education; 2-1 (C) professional training; 2-2 (D) licenses; and 2-3 (E) Educational Commission for Foreign Medical 2-4 Graduates certification. 2-5 (2) "Credentials verification organization" means an 2-6 organization that is certified or accredited and organized to 2-7 collect, verify, maintain, store, and provide to health care 2-8 entities a health care practitioner's verified credentials data, 2-9 including all corrections, updates, and modifications to that data. 2-10 For purposes of this subdivision, "certified" or "accredited" 2-11 includes certification or accreditation by a nationally recognized 2-12 accreditation organization. 2-13 (3) "Health care entity" means: 2-14 (A) a health care facility or other health care 2-15 organization licensed or certified to provide approved medical and 2-16 allied health services in this state; 2-17 (B) an entity licensed by the Texas Department 2-18 of Insurance as a prepaid health care plan or health maintenance 2-19 organization or as an insurer to provide coverage for health care 2-20 services through a network of providers; or 2-21 (C) a health care provider entity accepting 2-22 delegated credentialing functions from a health maintenance 2-23 organization. 2-24 (4) "Physician" means a holder of or applicant for a 2-25 license under this Act as a medical doctor or doctor of osteopathy. 2-26 Sec. 7.01A. ASSOCIATIONS. Each provision of this Act that 2-27 applies to a health care entity also applies to an association that 3-1 represents federally qualified health centers. For purposes of 3-2 this section, "federally qualified health center" has the meaning 3-3 assigned by 42 U.S.C. Section 1396d(l)(2)(B), and its subsequent 3-4 amendments. 3-5 Sec. 7.02. STANDARDIZED CREDENTIALS VERIFICATION PROGRAM. 3-6 (a) The board shall develop standardized forms and guidelines for 3-7 and administer: 3-8 (1) the collection, verification, correction, 3-9 updating, modification, maintenance, and storage of information 3-10 relating to physician credentials; and 3-11 (2) the release of that information to health care 3-12 entities or designated credentials verification organizations 3-13 authorized by the physician to receive that information. 3-14 (b) Except as provided by Subsection (c), a physician whose 3-15 core credentials data is submitted to the board is not required to 3-16 resubmit the data when applying for practice privileges with a 3-17 health care entity. 3-18 (c) A physician shall: 3-19 (1) provide to the board any correction, update, or 3-20 modification of the physician's core credentials data not later 3-21 than the 30th day after the date the data on file is no longer 3-22 accurate; and 3-23 (2) resubmit the physician's core credentials data 3-24 annually if the physician did not submit a correction, update, or 3-25 modification during the preceding year. 3-26 (d) A health care entity that employs, contracts with, or 3-27 credentials physicians must use the board to obtain core 4-1 credentials data for items for which the board is designated or 4-2 accepted as a primary source by a national accreditation 4-3 organization. A health care entity may act through its designated 4-4 credentials verification organization. 4-5 (e) This section does not restrict the authority of a health 4-6 care entity to approve or deny an original or renewal application 4-7 for hospital staff membership, clinical privileges, or managed care 4-8 network participation. 4-9 Sec. 7.03. FURNISHING OF DATA TO HEALTH CARE ENTITY. Not 4-10 later than the 15th business day after the date the board receives 4-11 a request for the data, the board shall make available to a health 4-12 care entity or its designated credentials verification organization 4-13 all core credentials data it collects on a physician, including any 4-14 correction, update, or modification of that data, if authorized by 4-15 the physician. 4-16 Sec. 7.04. REVIEW OF DATA BY PHYSICIAN. (a) Before 4-17 releasing a physician's core credentials data from its data bank 4-18 for the first time, the board shall provide to the affected 4-19 physician 15 business days to review the data and request 4-20 reconsideration or resolution of errors in or omissions from the 4-21 data. The board shall include with the data any change or 4-22 clarification made by the physician. 4-23 (b) The board shall notify a physician of any change to the 4-24 physician's core credentials data when a change is made or 4-25 initiated by a person other than the physician. 4-26 (c) A physician may request to review the physician's core 4-27 credentials data collected at any time after the initial release of 5-1 information, but the board is not required by virtue of a request 5-2 to hold, release, or modify any information. 5-3 Sec. 7.05. DATA DUPLICATION PROHIBITED. (a) A health care 5-4 entity may not collect or attempt to collect duplicate core 5-5 credentials data from a physician if the information is already on 5-6 file with the board. This section does not restrict the right of a 5-7 health care entity to request additional information not included 5-8 in the core credentials data on file with the board that is 5-9 necessary for the entity to credential the physician. A health 5-10 care entity or its designated credentials verification organization 5-11 may collect any additional information required by the health care 5-12 entity's credentialing process from a primary source of that 5-13 information. 5-14 (b) A state agency may not collect or attempt to collect 5-15 duplicate core credentials data from a physician if the information 5-16 is already on file with the board. This section does not restrict 5-17 the right of a state agency to request additional information not 5-18 included in the core credentials data on file with the board that 5-19 the agency considers necessary for its specific credentialing 5-20 purposes. 5-21 (c) The board by rule may except from Subsections (a) and 5-22 (b) of this section a request for core credentials data that is 5-23 necessary for a health care entity to provide temporary privileges 5-24 during the credentialing process. 5-25 Sec. 7.06. IMMUNITY. A health care entity or its designated 5-26 credentials verification organization is immune from liability 5-27 arising from its reliance on data furnished by the board under this 6-1 subchapter. 6-2 Sec. 7.07. RULES. The board shall adopt rules as necessary 6-3 to develop and implement the standardized credentials verification 6-4 program established by this subchapter. 6-5 Sec. 7.08. CONFIDENTIALITY. The information collected, 6-6 maintained, or stored by the board under this subchapter is 6-7 privileged and confidential and not subject to discovery, subpoena, 6-8 or other means of legal compulsion for its release or to disclosure 6-9 under Chapter 552, Government Code, except as otherwise provided by 6-10 this subchapter. 6-11 Sec. 7.09. USE OF INDEPENDENT CONTRACTOR. The board may 6-12 contract with an independent contractor to collect, verify, 6-13 maintain, store, or release information. The contract must provide 6-14 for board oversight and for the confidentiality of the information. 6-15 If the board contracts with an independent entity that is not a 6-16 governmental unit to carry out the provisions of this subchapter, 6-17 the independent entity is not immune from liability. 6-18 Sec. 7.10. FEES. (a) The board shall charge and collect 6-19 fees in amounts necessary to cover its cost of operating and 6-20 administering its duties and functions under this subchapter. 6-21 (b) The board may waive a fee for a state agency that is 6-22 required to obtain core credentials data from the board and that is 6-23 prohibited by Section 7.05 of this Act from collecting duplicate 6-24 data. 6-25 Sec. 7.11. GIFTS, GRANTS, AND DONATIONS. In addition to any 6-26 fees paid to the board or money appropriated to the board, the 6-27 board may receive and accept a gift, grant, donation, or other 7-1 thing of value from any source, including the United States or a 7-2 private source. 7-3 SECTION 3. The Texas State Board of Medical Examiners shall 7-4 implement this Act only if the legislature appropriates money 7-5 specifically for that purpose. If the legislature does not 7-6 appropriate money specifically for that purpose, the board may 7-7 implement this Act using other appropriations, gifts, grants, or 7-8 donations available for that purpose. 7-9 SECTION 4. (a) Except as provided by Section 3 of this Act, 7-10 not later than September 1, 2001, the Texas State Board of Medical 7-11 Examiners shall make available the core credentials data required 7-12 by this Act. 7-13 (b) A health care entity is not required to use the board's 7-14 core credentials data until September 1, 2001, and not until that 7-15 data is available from the board for items for which the board is 7-16 designated or accepted as a primary source by a national 7-17 accreditation organization. 7-18 SECTION 5. This Act takes effect September 1, 1999. 7-19 SECTION 6. The importance of this legislation and the 7-20 crowded condition of the calendars in both houses create an 7-21 emergency and an imperative public necessity that the 7-22 constitutional rule requiring bills to be read on three several 7-23 days in each house be suspended, and this rule is hereby suspended. _______________________________ _______________________________ President of the Senate Speaker of the House I certify that H.B. No. 3216 was passed by the House on May 4, 1999, by a non-record vote; and that the House concurred in Senate amendments to H.B. No. 3216 on May 27, 1999, by a non-record vote. _______________________________ Chief Clerk of the House I certify that H.B. No. 3216 was passed by the Senate, with amendments, on May 25, 1999, by a viva-voce vote. _______________________________ Secretary of the Senate APPROVED: _____________________ Date _____________________ Governor