SRC-MWN H.B. 606 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 606
By: Smithee (Nelson)
Business & Commerce
5/2/2001
Engrossed


DIGEST AND PURPOSE 

A recent development in managed care is the use of hospitalists.
Hospitalists are physicians who practice primarily in the hospital setting
and assume primary responsibility for the care of other physicians'
patients during hospitalization. A hospitalist arrangement, if entered into
voluntarily by a patient and a physician, may increase efficiency, reduce
unnecessary services, and improve communication among the hospitalized
patient, the attending physician, and the hospital staff. Mandatory
hospitalist arrangements, however, may compromise the quality and
continuity of care, decrease patient satisfaction, and erode an
office-based physician's inpatient clinical skills. H.B. 606 prohibits an
insurer or health maintenance organization from mandating a hospitalist
program.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article 3.70-3C, Insurance Code, as added by Chapter
1024, Acts of the 75th Legislature, Regular Session, 1997, by adding
Section 3B, as follows: 

 Sec. 3B. USE OF HOSPITALIST. (a) Defines "hospitalist."

(b) Prohibits a preferred provider contract between an insurer and a
physician from requiring  the physician to use a hospitalist for a
hospitalized patient. 

SECTION 2. Amends the Texas Health Maintenance Organization Act (Chapter
20A, V.T.C.S.), by adding Section 18D, as follows: 

 Sec. 18D. USE OF HOSPITALIST. (a) Defines "hospitalist."

(b) Prohibits a contract between a health maintenance organization and a
physician from requiring the physician to use a hospitalist for a
hospitalized patient. 

(c) Provides that this section does not apply to a nonprofit health
organization certified under Sections 162.001(a) (Relating to the board by
rule certifying a health organization) and (b) (Relating to the board
approving and certifying a health organization), Occupations Code. 

SECTION 3. Effective date: September 1, 2001.
                      Makes application of this Act prospective.