By Brimer, et al. H.B. No. 1340
Substitute the following for H.B. No. 1340:
By Bosse C.S.H.B. No. 1340
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the liability of certain hospitals that provide charity
1-3 care.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 311.041, Health and Safety Code, is
1-6 amended to read as follows:
1-7 Sec. 311.041. POLICY STATEMENT. It is the purpose of this
1-8 subchapter to clarify and set forth the duties, [and]
1-9 responsibilities, and benefits that apply to [of nonprofit]
1-10 hospitals for providing community benefits that include charity
1-11 care.
1-12 SECTION 2. Subchapter D, Chapter 311, Health and Safety
1-13 Code, is amended by adding Section 311.0456 to read as follows:
1-14 Sec. 311.0456. ELIGIBILITY AND CERTIFICATION FOR LIMITED
1-15 LIABILITY. (a) In this section, "department" means the Texas
1-16 Department of Health.
1-17 (b) This section applies only to:
1-18 (1) a nonprofit hospital or hospital system that is
1-19 certified by the department under Subsection (d); or
1-20 (2) a hospital that is licensed under Chapter 241, is
1-21 not a nonprofit hospital, and is certified by the department under
1-22 Subsection (f).
1-23 (c) To be eligible for certification under Subsection (d), a
1-24 nonprofit hospital or hospital system must provide:
2-1 (1) charity care and community benefits in a combined
2-2 amount equal to at least 10 percent of the net patient revenue of
2-3 the hospital or hospital system during the preceding fiscal year of
2-4 the hospital or system; and
2-5 (2) at least 50 percent of the charity care required
2-6 by the county in which the hospital is located.
2-7 (d) To be certified under this subsection, a nonprofit
2-8 hospital or hospital system must submit a report based on its most
2-9 recent completed and audited prior fiscal year to the department
2-10 not later than April 30 of each year stating that the hospital or
2-11 system is eligible for certification. The department must verify
2-12 the information in the report not later than May 31 of the year in
2-13 which the department receives the report by checking the
2-14 information against the report filed by the hospital or system
2-15 under Section 311.046. After the department has verified the
2-16 information in the report, the department shall certify that the
2-17 hospital or hospital system has met the requirements for
2-18 certification. The certification issued under this subsection to a
2-19 nonprofit hospital or hospital system takes effect on May 31 of
2-20 that year and expires on the anniversary of that date.
2-21 (e) To be eligible for certification under Subsection (b), a
2-22 hospital described by Subsection (b)(2) must provide:
2-23 (1) charity care and community benefits in a combined
2-24 amount equal to at least 10 percent of the net patient revenue of
2-25 the hospital during the preceding fiscal year of the hospital; and
2-26 (2) at least 50 percent of the charity care required
2-27 by the county in which the hospital is located.
3-1 (f) To be certified under this subsection, a hospital
3-2 described by Subsection (b)(2) must submit a report based on its
3-3 most recent completed and audited prior fiscal year to the
3-4 department not later than April 30 of each year stating that the
3-5 hospital is eligible for certification. The report must include
3-6 the information described by Sections 311.046(a)(3), (4), and (5).
3-7 The department must verify the information in the report not later
3-8 than May 31 of the year in which the department receives the
3-9 report. After the department has verified the information in the
3-10 report, the department shall certify that the hospital has met the
3-11 requirements for certification. The certification issued under
3-12 this subsection to a hospital takes effect on May 31 of that year
3-13 and expires on the anniversary of that date.
3-14 (g) The liability of a hospital or hospital system for a
3-15 cause of action that accrues during the period that the hospital or
3-16 system is certified under this section is subject to the
3-17 limitations specified by the Medical Liability and Insurance
3-18 Improvement Act of Texas (Article 4590i, Vernon's Texas Civil
3-19 Statutes).
3-20 SECTION 3. The heading to Subchapter D, Chapter 311, Health
3-21 and Safety Code, is amended to read as follows:
3-22 SUBCHAPTER D. COMMUNITY BENEFITS AND CHARITY CARE [DUTIES OF
3-23 NONPROFIT HOSPITALS]
3-24 SECTION 4. This Act takes effect immediately if it receives
3-25 a vote of two-thirds of all the members elected to each house, as
3-26 provided by Section 39, Article III, Texas Constitution. If this
3-27 Act does not receive the vote necessary for immediate effect, this
4-1 Act takes effect September 1, 2001.