1-1                                   AN ACT
 1-2     relating to prohibiting certain health benefit plans from requiring
 1-3     the use of hospitalists by participating physicians.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Article 3.70-3C, Insurance Code, as added by
 1-6     Chapter 1024, Acts of the 75th Legislature, Regular Session, 1997,
 1-7     is amended by adding Section 3B to read as follows:
 1-8           Sec. 3B.  USE OF HOSPITALIST. (a)  In this section,
 1-9     "hospitalist" means a physician who:
1-10                 (1)  serves as physician of record at a hospital for a
1-11     hospitalized patient of another physician; and
1-12                 (2)  returns the care of the patient to that other
1-13     physician at the end of the patient's hospitalization.
1-14           (b)  A preferred provider contract between an insurer and a
1-15     physician may not require the physician to use a hospitalist for a
1-16     hospitalized patient.
1-17           SECTION 2. The Texas Health Maintenance Organization Act
1-18     (Chapter 20A, Vernon's Texas Insurance Code) is amended by adding
1-19     Section 18D to read as follows:
1-20           Sec. 18D.  USE OF HOSPITALIST. (a)  In this section,
1-21     "hospitalist" means a physician who:
1-22                 (1)  serves as physician of record at a hospital for a
1-23     hospitalized patient of another physician; and
1-24                 (2)  returns the care of the patient to that other
 2-1     physician at the end of the patient's hospitalization.
 2-2           (b)  A contract between a health maintenance organization and
 2-3     a physician may not require the physician to use a hospitalist for
 2-4     a hospitalized patient.
 2-5           SECTION 3. This Act takes effect September 1, 2001, and
 2-6     applies only to a contract between an insurer or health maintenance
 2-7     organization and a physician that is entered into on or after the
 2-8     effective date of this Act.  A contract entered into before the
 2-9     effective date of this Act is governed by the law in effect
2-10     immediately before the effective date of this Act, and that law is
2-11     continued in effect for that purpose.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 606 was passed by the House on April
         4, 2001, by a non-record vote; that the House refused to concur in
         Senate amendments to H.B. No. 606 on May 17, 2001, and requested
         the appointment of a conference committee to consider the
         differences between the two houses; and that the House adopted the
         conference committee report on H.B. No. 606 on May 27, 2001, by a
         non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 606 was passed by the Senate, with
         amendments, on May 15, 2001, by the following vote:  Yeas 30, Nays
         0, 1 present, not voting; at the request of the House, the Senate
         appointed a conference committee to consider the differences
         between the two houses; and that the Senate adopted the conference
         committee report on H.B. No. 606 on May 26, 2001, by a viva-voce
         vote.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor