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