HBA-DMH H.B. 3395 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3395 By: Dunnam Civil Practices 3/27/2001 Introduced BACKGROUND AND PURPOSE Under Texas court decisions, hospitals have been held responsible when they negligently extend practice privileges or employment to a physician that is unfit to practice medicine. In 1997, St. Luke's Episcopal Hospital v. Agbor determined that hospitals are not responsible when a patient is killed or injured as a result of hospital negligence allowing unfit physicians treat patients. House Bill 3395 establishes liability for a hospital or health maintenance organization for granting certain medical staff privileges employment. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS House Bill 3395 amends the Occupations Code to provide that a hospital or a health maintenance organization (HMO) is liable to a patient without proof of malice if the trier of fact determines by a preponderance of the evidence that the members or staff of a medical peer review committee or the officers, agents, employees, or the members of the governing body of a hospital or HMO are negligent with respect to the granting of certain medical staff privileges or employment and that such negligence was a proximate cause of injury to or death of a patient. If a hospital or HMO delegates to any other person or entity the function of granting certain medical staff privileges or employment, the hospital or HMO remains ultimately and solely liable for any negligence of any person or entity to whom any such duties are delegated where such negligence is a proximate cause of injury to or death of a patient. EFFECTIVE DATE September 1, 2001.