AN ACT
1-1 relating to billing medical patients.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 311.0025, Health and Safety Code, is
1-4 amended by adding Subsection (e) to read as follows:
1-5 (e) A licensing agency may not take disciplinary action
1-6 against a hospital, treatment facility, mental health facility, or
1-7 health care professional for unknowing and isolated billing errors.
1-8 SECTION 2. Subsection (b), Section 5, Article 4512p, Revised
1-9 Statutes, is amended to read as follows:
1-10 (b) A health care professional may not violate Section
1-11 311.0025, Health and Safety Code [persistently or flagrantly
1-12 overcharge or overtreat a patient].
1-13 SECTION 3. Section 3.08, Medical Practice Act (Article
1-14 4495b, Vernon's Texas Civil Statutes), is amended to read as
1-15 follows:
1-16 Sec. 3.08. GROUNDS FOR REFUSAL TO ADMIT PERSONS TO
1-17 EXAMINATION AND TO ISSUE LICENSE AND RENEWAL LICENSE AND FOR
1-18 DISCIPLINARY ACTION. The board may refuse to admit persons to its
1-19 examinations and to issue a license to practice medicine to any
1-20 person and may take disciplinary action against any person for any
1-21 of the following reasons:
1-22 (1) submission of a false or misleading statement,
1-23 document, or certificate to the board in an application for
1-24 examination or licensure; the presentation to the board of any
2-1 license, certificate, or diploma that was illegally or fraudulently
2-2 obtained; the practice of fraud or deception in taking or passing
2-3 an examination;
2-4 (2) conviction of a crime of the grade of a felony or
2-5 a crime of a lesser degree that involves moral turpitude;
2-6 (3) intemperate use of alcohol or drugs that, in the
2-7 opinion of the board, could endanger the lives of patients;
2-8 (4) unprofessional or dishonorable conduct that is
2-9 likely to deceive or defraud the public or injure the public.
2-10 Unprofessional or dishonorable conduct likely to deceive or defraud
2-11 the public includes but is not limited to the following acts:
2-12 (A) committing any act that is in violation of
2-13 the laws of the State of Texas if the act is connected with the
2-14 physician's practice of medicine. A complaint, indictment, or
2-15 conviction of a law violation is not necessary for the enforcement
2-16 of this provision. Proof of the commission of the act while in the
2-17 practice of medicine or under the guise of the practice of medicine
2-18 is sufficient for action by the board under this section;
2-19 (B) failing to keep complete and accurate
2-20 records of purchases and disposals of drugs listed in Chapter 481,
2-21 Health and Safety Code, or of controlled substances scheduled in
2-22 the Federal Comprehensive Drug Abuse Prevention and Control Act of
2-23 1970, 21 U.S.C.A. Section 801 et seq. (Public Law 91-513). A
2-24 physician shall keep records of his purchases and disposals of
2-25 these drugs to include without limitation the date of purchase, the
2-26 sale or disposal of the drugs by the physician, the name and
3-1 address of the person receiving the drugs, and the reason for the
3-2 disposing or dispensing of the drugs to the person. A failure to
3-3 keep the records for a reasonable time is grounds for revoking,
3-4 canceling, suspending, or probating the license of any practitioner
3-5 of medicine. The board or its representative may enter and inspect
3-6 a physician's place(s) of practice during reasonable business hours
3-7 for the purpose of verifying the correctness of these records and
3-8 of taking inventory of the prescription drugs on hand;
3-9 (C) writing prescriptions for or dispensing to a
3-10 person known to be an abuser of narcotic drugs, controlled
3-11 substances, or dangerous drugs or to a person who the physician
3-12 should have known was an abuser of the narcotic drugs, controlled
3-13 substances, or dangerous drugs. This provision does not apply to
3-14 those persons:
3-15 (i) being treated by the physician for
3-16 their narcotic use after the physician notifies the board in
3-17 writing of the name and address of the person being so treated; or
3-18 (ii) who the physician is treating for
3-19 intractable pain under the Intractable Pain Treatment Act (Article
3-20 4495c, Revised Statutes) and its subsequent amendments;
3-21 (D) writing false or fictitious prescriptions
3-22 for dangerous drugs as defined by Chapter 483, Health and Safety
3-23 Code, of controlled substances scheduled in the Texas Controlled
3-24 Substances Act (Chapter 481, Health and Safety Code), or of
3-25 controlled substances scheduled in the Federal Comprehensive Drug
3-26 Abuse Prevention and Control Act of 1970, 21 U.S.C.A. Section 801
4-1 et seq. (Public Law 91-513);
4-2 (E) prescribing or administering a drug or
4-3 treatment that is nontherapeutic in nature or nontherapeutic in the
4-4 manner the drug or treatment is administered or prescribed;
4-5 (F) prescribing, administering, or dispensing in
4-6 a manner not consistent with public health and welfare dangerous
4-7 drugs as defined by Chapter 483, Health and Safety Code, controlled
4-8 substances scheduled in the Texas Controlled Substances Act
4-9 (Chapter 481, Health and Safety Code), or controlled substances
4-10 scheduled in the Federal Comprehensive Drug Abuse Prevention and
4-11 Control Act of 1970, 21 U.S.C.A. Section 801 et seq. (Public Law
4-12 91-513);
4-13 (G) violating Section 311.0025, Health and
4-14 Safety Code [persistently or flagrantly overcharging or
4-15 overtreating patients];
4-16 (H) failing to supervise adequately the
4-17 activities of those acting under the supervision of the physician;
4-18 or
4-19 (I) delegating professional medical
4-20 responsibility or acts to a person if the delegating physician
4-21 knows or has reason to know that the person is not qualified by
4-22 training, experience, or licensure to perform the responsibility or
4-23 acts;
4-24 (5) violation or attempted violation, direct or
4-25 indirect, of any valid rules issued under this Act, either as a
4-26 principal, accessory, or accomplice;
5-1 (6) use of any advertising statement that is false,
5-2 misleading, or deceptive;
5-3 (7) advertising professional superiority or the
5-4 performance of professional service in a superior manner if the
5-5 advertising is not readily subject to verification;
5-6 (8) purchase, sale, barter, or use or any offer to
5-7 purchase, sell, barter, or use any medical degree, license,
5-8 certificate, diploma, or transcript of license, certificate, or
5-9 diploma in or incident to an application to the board for a license
5-10 to practice medicine;
5-11 (9) altering, with fraudulent intent, any medical
5-12 license, certificate, diploma, or transcript of a medical license,
5-13 certificate, or diploma;
5-14 (10) using any medical license, certificate, diploma,
5-15 or transcript of a medical license, certificate, or diploma that
5-16 has been fraudulently purchased, issued, or counterfeited or that
5-17 has been materially altered;
5-18 (11) impersonating or acting as proxy for another in
5-19 any examination required by this Act for a medical license; or
5-20 engaging in conduct which subverts or attempts to subvert any
5-21 examination process required by this Act for a medical license.
5-22 Conduct which subverts or attempts to subvert the medical licensing
5-23 examination process includes, but is not limited to:
5-24 (A) conduct which violates the security of the
5-25 examination materials, as prescribed by board rules;
5-26 (B) conduct which violates the standard of test
6-1 administration, as prescribed by board rules; or
6-2 (C) conduct which violates the accreditation
6-3 process, as prescribed by board rules;
6-4 (12) impersonating a licensed practitioner or
6-5 permitting or allowing another to use his license or certificate to
6-6 practice medicine in this state for the purpose of diagnosing,
6-7 treating, or offering to treat sick, injured, or afflicted human
6-8 beings;
6-9 (13) employing, directly or indirectly, any person
6-10 whose license to practice medicine has been suspended, canceled, or
6-11 revoked or association in the practice of medicine with any person
6-12 or persons whose license to practice medicine has been suspended,
6-13 canceled, or revoked or any person who has been convicted of the
6-14 unlawful practice of medicine in Texas or elsewhere;
6-15 (14) performing or procuring a criminal abortion or
6-16 aiding or abetting in the procuring of a criminal abortion or
6-17 attempting to perform or procure a criminal abortion or attempting
6-18 to aid or abet the performance or procurement of a criminal
6-19 abortion;
6-20 (15) aiding or abetting, directly or indirectly, the
6-21 practice of medicine by any person, partnership, association, or
6-22 corporation not duly licensed to practice medicine by the board;
6-23 (16) inability to practice medicine with reasonable
6-24 skill and safety to patients by reason of illness, drunkenness,
6-25 excessive use of drugs, narcotics, chemicals, or any other type of
6-26 material or as a result of any mental or physical condition. In
7-1 enforcing this subdivision the board shall, upon probable cause,
7-2 request a physician to submit to a mental or physical examination
7-3 by physicians designated by the board. If the physician refuses to
7-4 submit to the examination, the board shall issue an order requiring
7-5 the physician to show cause why he should not be required to submit
7-6 to the examination and shall schedule a hearing on the order within
7-7 30 days after notice is served on the physician. The physician
7-8 shall be notified by either personal service or certified mail with
7-9 return receipt requested. At the hearing, the physician and his
7-10 attorney are entitled to present any testimony and other evidence
7-11 to show why the physician should not be required to submit to the
7-12 examination. After a complete hearing, the board shall issue an
7-13 order either requiring the physician to submit to the examination
7-14 or withdrawing the request for examination. An appeal from the
7-15 decision of the board shall be taken under the Administrative
7-16 Procedure Act;
7-17 (17) judgment by a court of competent jurisdiction
7-18 that a person licensed to practice medicine is of unsound mind;
7-19 (18) professional failure to practice medicine in an
7-20 acceptable manner consistent with public health and welfare;
7-21 (19) being removed, suspended, or having disciplinary
7-22 action taken by his peers in any professional medical association
7-23 or society, whether the association or society is local, regional,
7-24 state, or national in scope, or being disciplined by a licensed
7-25 hospital or medical staff of a hospital, including removal,
7-26 suspension, limitation of hospital privileges, or other
8-1 disciplinary action, if that action in the opinion of the board was
8-2 based on unprofessional conduct or professional incompetence that
8-3 was likely to harm the public, provided that the board finds that
8-4 the actions were appropriate and reasonably supported by evidence
8-5 submitted to it. The action does not constitute state action on
8-6 the part of the association, society, or hospital medical staff;
8-7 (20) repeated or recurring meritorious health-care
8-8 liability claims that in the opinion of the board evidence
8-9 professional incompetence likely to injure the public; or
8-10 (21) suspension, revocation, restriction, or other
8-11 disciplinary action by another state of a license to practice
8-12 medicine, or disciplinary action by the uniformed services of the
8-13 United States, based upon acts by the licensee similar to acts
8-14 described in this section. A certified copy of the record of the
8-15 state taking the action is conclusive evidence of it.
8-16 SECTION 4. This Act takes effect September 1, 1999, and
8-17 applies only to acts or omissions occurring on or after that date.
8-18 SECTION 5. The importance of this legislation and the
8-19 crowded condition of the calendars in both houses create an
8-20 emergency and an imperative public necessity that the
8-21 constitutional rule requiring bills to be read on three several
8-22 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1294 passed the Senate on
April 22, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1294 passed the House on
May 25, 1999, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor