By Brimer H.B. No. 1340
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the tort liability of certain hospitals.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 84, Civil Practice and Remedies Code is
1-5 amended by adding a new Section 84.0065 to read as follows:
1-6 Sec. 84.0065. ORGANIZATION LIABILITY OF CERTAIN HOSPITALS
1-7 (a) Definitions.
1-8 (1) As used in this section, the terms "charity care",
1-9 "community benefits", "hospital system", "net patient revenue",
1-10 "nonprofit hospital", and "nonprofit supporting entities" shall
1-11 have the meanings assigned to them in Section 311.042, Health and
1-12 Safety Code.
1-13 (2) As used in this section, "for-profit hospital"
1-14 shall mean any general or special hospital licensed under Chapter
1-15 241, Health and Safety Code that does not meet the definition of a
1-16 nonprofit hospital set forth in Section 311.042(9), Health and
1-17 Safety Code.
1-18 (3) As used in this section, "Department" shall mean
1-19 the Texas Department of Health.
1-20 (b) Except as provided in Section 84.007 of this Act, in any
1-21 civil action brought against a nonprofit hospital, hospital system,
1-22 or for-profit hospital, or their respective employees, officers,
2-1 directors, or nonprofit supporting entities, for damages based on
2-2 an act or omission by such nonprofit hospital, hospital system, or
2-3 for-profit hospital, or their respective employees, volunteers, or
2-4 nonprofit supporting entities, the liability of such an
2-5 organization is limited to money damages in a maximum amount of
2-6 $100,000.00 for each person and $300,000.00 for each single
2-7 occurrence of bodily injury or death and $100,000.00 for each
2-8 single occurrence for injury to or destruction of property;
2-9 provided, however, that such civil action accrues during the time
2-10 which such nonprofit hospital, hospital system or for-profit
2-11 hospital is certified by the department in accordance with
2-12 subsections (c) or (d) of this section, respectively.
2-13 (c) In order to receive the protections afforded under
2-14 subsection (b) above, a nonprofit hospital or hospital system must
2-15 exceed the requirements set forth in Section 311.045(b)(1)(C),
2-16 Health and Safety Code, to the extent that that nonprofit hospital
2-17 or hospital system has provided charity care and community benefits
2-18 in a combined amount equal to at least ten percent of the nonprofit
2-19 hospital's or hospital system's net patient revenue during the
2-20 nonprofit hospital's or hospital system's immediately preceding
2-21 fiscal year. Each nonprofit hospital or hospital system must be
2-22 certified annually by the Bureau of State Health Data and Policy
2-23 analysis at the department as having met the requirements set forth
2-24 in this subsection. Each nonprofit hospital or hospital system
2-25 wishing to be so certified must submit a report to the department
2-26 no later than the 120th day after the nonprofit hospital or
3-1 hospital system's fiscal year ends stating that it has met the
3-2 requirements of this subsection. This report is in addition to the
3-3 report required under section Section 311.045(a), Health and Safety
3-4 Code. The department shall verify the information contained in
3-5 each nonprofit hospital's or hospital system's report no later than
3-6 May 31st of each year by reviewing the nonprofit hospital or
3-7 hospital system's Annual Report of Community Benefits Plan set
3-8 forth in Section 311.046, Health and Safety Code. Once the
3-9 department has verified a nonprofit hospital's or hospital system's
3-10 report, the department shall certify that the nonprofit hospital or
3-11 hospital system has met the requirements of this section, effective
3-12 as of May 31st of the then-current year.
3-13 (d) In order to receive the protections afforded under
3-14 subsection (b) above, a for-profit hospital must have provided
3-15 charity care and community benefits in a combined amount equal to
3-16 at least 10 percent of the hospital's net patient revenue during
3-17 the hospital's immediately preceding fiscal year. Each for-profit
3-18 hospital must be certified annually by the Bureau of State Health
3-19 Data and Policy Analysis at the department as having met the
3-20 requirements set forth in this subsection. Each for-profit
3-21 hospital wishing to be so certified must submit a report to the
3-22 department no later than the 120th day after the hospital's fiscal
3-23 year ends stating that it has met the requirements of this
3-24 subsection. In addition, each for-profit hospital must submit a
3-25 report to the Bureau of State Health Data and Policy Analysis at
3-26 the department no later than April 30th of each year with the
4-1 information listed in Sections 311.046(a)(3), (4) and (5), Health
4-2 and Safety Code. The department shall verify the information
4-3 contained in that for-profit hospital's report no later than May
4-4 31st of each year. Once the department has verified a for-profit
4-5 hospital's report, the department shall certify that the hospital
4-6 has met the requirements of this section, effective as of May 31st
4-7 of the then-current year.
4-8 SECTION 2. Chapter 84, Civil Practice and Remedies Code is
4-9 amended by amending subsection (e) to read as follows:
4-10 (e) Sections 84.005 and 84.006 of this chapter do not apply
4-11 to a health care provider as defined in the Medical Liability and
4-12 Insurance Improvement Act of Texas (Article 4590i, Vernon's Texas
4-13 Civil Statutes), unless the provider is a federally funded migrant
4-14 or community health center under the Public Health Service Act (42
4-15 U.S.C.A. Sections 254(b) and (c)) or is a nonprofit health
4-16 maintenance organization created and operated by a community center
4-17 under Section 534.101, Health and Safety Code, or unless the
4-18 provider usually provides discounted services at or below costs
4-19 based on the ability of the beneficiary to pay. Acceptance of
4-20 Medicare or Medicaid payments will not disqualify a health care
4-21 provider under this section. In no event shall Sections 84.005 and
4-22 84.006 of this chapter apply to a general hospital or special
4-23 hospital as defined in Chapter 241, Health and Safety Code, or a
4-24 facility or institution licensed under Subtitle C, Title 7, Health
4-25 and Safety Code, or Chapter 242, Health and Safety Code, or to any
4-26 health maintenance organization created and operating under the
5-1 Texas Health Maintenance Organization Act (Chapter 20A, Vernon's
5-2 Texas Insurance Code), except for a nonprofit health maintenance
5-3 organization created under Section 534.101, Health and Safety Code.
5-4 Section 84.0065 of this chapter shall apply only to the
5-5 institutions described in that Section and shall apply only to the
5-6 extent set forth in that Section, and nothing in this subsection
5-7 shall expand the protections set forth in Section 84.0065 to any
5-8 other institution, entity or provider, nor shall anything in this
5-9 subsection limit, diminish, modify or alter the protections
5-10 provided to applicable entities in Section 84.0065.