SRC-CTC H.B. 1340 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 1340
By: Brimer (Carona)
Health & Human Services
5/11/2001
Engrossed


DIGEST AND PURPOSE 

Current law limits the liability of a nonhospital charitable organization
regarding a civil action  for certain damages. It has been suggested that
similar limited liability should be extended to a nonprofit hospital,
hospital system, or for-profit hospital.  H.B. 1340 provides that a
nonprofit hospital, hospital system, or a hospital licensed under the Texas
Hospital Licensing Law, that is not a nonprofit hospital must provide
charity care and community benefits in a combined amount equal to 10
percent or more of its net patient revenue and at least 50 percent of the
charity care required by the county in which the hospital or system is
located in order to be protected under limited liability.  The bill also
sets forth certification of such a hospital or system.  

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

H.B. 1340 amends the Health and Safety Code to provide that a nonprofit
hospital, hospital system, and a hospital licensed under the Texas Hospital
Licensing Law that is not a nonprofit hospital must provide charity care
and community benefits in a combined amount equal to at least 10 percent of
the net patient revenue of the hospital or hospital system during the
preceding fiscal year of the hospital or system and at least 50 percent of
the charity care required by the county in which the hospital is located to
be eligible for certification.   

The bill provides that all of these hospitals and a hospital system must
submit a report based on its most recent completed and audited prior fiscal
year to the Texas Department of Health not later than April 30 of each year
after the hospital's or system's fiscal year ends stating that the hospital
or system is eligible for certification. The bill provides that the
information in the report must be verified against the hospital's or
system's annual report of community benefits plan. The bill provides that
certification issued to a hospital or system takes effect on May 31 of that
year and expires on the anniversary of that date.    

The bill provides that the liability of a hospital or hospital system for a
cause of action that accrues during the period that the hospital or system
is certified is subject to the limitations specified by the Medical
Liability and Insurance Improvement Act of Texas.   

Effective date: upon passage or September 1, 2001.