1-1     By:  Smithee, Uresti, et al. (Senate Sponsor - Nelson) H.B. No. 606
 1-2           (In the Senate - Received from the House April 5, 2001;
 1-3     April 9, 2001, read first time and referred to Committee on
 1-4     Business and Commerce; May 8, 2001, reported adversely, with
 1-5     favorable Committee Substitute by the following vote:  Yeas 5, Nays
 1-6     0; May 8, 2001, sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR H.B. No. 606                   By:  Fraser
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to prohibiting certain health benefit plans from requiring
1-11     the use of hospitalists by participating physicians.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1. Article 3.70-3C, Insurance Code, as added by
1-14     Chapter 1024, Acts of the 75th Legislature, Regular Session, 1997,
1-15     is amended by adding Section 3B to read as follows:
1-16           Sec. 3B.  USE OF HOSPITALIST. (a)  In this section,
1-17     "hospitalist" means a physician who:
1-18                 (1)  serves as physician of record at a hospital for a
1-19     hospitalized patient of another physician; and
1-20                 (2)  returns the care of the patient to that other
1-21     physician at the end of the patient's hospitalization.
1-22           (b)  A preferred provider contract between an insurer and a
1-23     physician may not require the physician to use a hospitalist for a
1-24     hospitalized patient.
1-25           SECTION 2. The Texas Health Maintenance Organization Act
1-26     (Chapter 20A, Vernon's Texas Insurance Code) is amended by adding
1-27     Section 18D to read as follows:
1-28           Sec. 18D.  USE OF HOSPITALIST. (a)  In this section,
1-29     "hospitalist" means a physician who:
1-30                 (1)  serves as physician of record at a hospital for a
1-31     hospitalized patient of another physician; and
1-32                 (2)  returns the care of the patient to that other
1-33     physician at the end of the patient's hospitalization.
1-34           (b)  A contract between a health maintenance organization and
1-35     a physician may not require the physician to use a hospitalist for
1-36     a hospitalized patient.
1-37           SECTION 3. This Act takes effect September 1, 2001, and
1-38     applies only to a contract between an insurer or health maintenance
1-39     organization and a physician that is entered into on or after the
1-40     effective date of this Act.  A contract entered into before the
1-41     effective date of this Act is governed by the law in effect
1-42     immediately before the effective date of this Act, and that law is
1-43     continued in effect for that purpose.
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