By Smithee H.B. No. 606 77R983 AJA-F A BILL TO BE ENTITLED 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.