1-1 By: Brimer, et al. (Senate Sponsor - Carona) H.B. No. 1340
1-2 (In the Senate - Received from the House May 11, 2001;
1-3 May 11, 2001, read first time and referred to Committee on Health
1-4 and Human Services; May 11, 2001, reported favorably by the
1-5 following vote: Yeas 7, Nays 0; May 11, 2001, sent to printer.)
1-6 A BILL TO BE ENTITLED
1-7 AN ACT
1-8 relating to the liability of certain hospitals that provide charity
1-9 care.
1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11 SECTION 1. Section 311.041, Health and Safety Code, is
1-12 amended to read as follows:
1-13 Sec. 311.041. POLICY STATEMENT. It is the purpose of this
1-14 subchapter to clarify and set forth the duties, [and]
1-15 responsibilities, and benefits that apply to [of nonprofit]
1-16 hospitals for providing community benefits that include charity
1-17 care.
1-18 SECTION 2. Subchapter D, Chapter 311, Health and Safety
1-19 Code, is amended by adding Section 311.0456 to read as follows:
1-20 Sec. 311.0456. ELIGIBILITY AND CERTIFICATION FOR LIMITED
1-21 LIABILITY. (a) In this section, "department" means the Texas
1-22 Department of Health.
1-23 (b) This section applies only to:
1-24 (1) a nonprofit hospital or hospital system that is
1-25 certified by the department under Subsection (d); or
1-26 (2) a hospital that is licensed under Chapter 241, is
1-27 not a nonprofit hospital, and is certified by the department under
1-28 Subsection (f).
1-29 (c) To be eligible for certification under Subsection (d), a
1-30 nonprofit hospital or hospital system must provide:
1-31 (1) charity care and community benefits in a combined
1-32 amount equal to at least 10 percent of the net patient revenue of
1-33 the hospital or hospital system during the preceding fiscal year of
1-34 the hospital or system; and
1-35 (2) at least 50 percent of the charity care required
1-36 by the county in which the hospital is located.
1-37 (d) To be certified under this subsection, a nonprofit
1-38 hospital or hospital system must submit a report based on its most
1-39 recent completed and audited prior fiscal year to the department
1-40 not later than April 30 of each year stating that the hospital or
1-41 system is eligible for certification. The department must verify
1-42 the information in the report not later than May 31 of the year in
1-43 which the department receives the report by checking the
1-44 information against the report filed by the hospital or system
1-45 under Section 311.046. After the department has verified the
1-46 information in the report, the department shall certify that the
1-47 hospital or hospital system has met the requirements for
1-48 certification. The certification issued under this subsection to a
1-49 nonprofit hospital or hospital system takes effect on May 31 of
1-50 that year and expires on the anniversary of that date.
1-51 (e) To be eligible for certification under Subsection (b), a
1-52 hospital described by Subsection (b)(2) must provide:
1-53 (1) charity care and community benefits in a combined
1-54 amount equal to at least 10 percent of the net patient revenue of
1-55 the hospital during the preceding fiscal year of the hospital; and
1-56 (2) at least 50 percent of the charity care required
1-57 by the county in which the hospital is located.
1-58 (f) To be certified under this subsection, a hospital
1-59 described by Subsection (b)(2) must submit a report based on its
1-60 most recent completed and audited prior fiscal year to the
1-61 department not later than April 30 of each year stating that the
1-62 hospital is eligible for certification. The report must include
1-63 the information described by Sections 311.046(a)(3), (4), and (5).
1-64 The department must verify the information in the report not later
2-1 than May 31 of the year in which the department receives the
2-2 report. After the department has verified the information in the
2-3 report, the department shall certify that the hospital has met the
2-4 requirements for certification. The certification issued under
2-5 this subsection to a hospital takes effect on May 31 of that year
2-6 and expires on the anniversary of that date.
2-7 (g) The liability of a hospital or hospital system for a
2-8 cause of action that accrues during the period that the hospital or
2-9 system is certified under this section is subject to the
2-10 limitations specified by the Medical Liability and Insurance
2-11 Improvement Act of Texas (Article 4590i, Vernon's Texas Civil
2-12 Statutes).
2-13 SECTION 3. The heading to Subchapter D, Chapter 311, Health
2-14 and Safety Code, is amended to read as follows:
2-15 SUBCHAPTER D. COMMUNITY BENEFITS AND CHARITY CARE [DUTIES OF
2-16 NONPROFIT HOSPITALS]
2-17 SECTION 4. This Act takes effect immediately if it receives
2-18 a vote of two-thirds of all the members elected to each house, as
2-19 provided by Section 39, Article III, Texas Constitution. If this
2-20 Act does not receive the vote necessary for immediate effect, this
2-21 Act takes effect September 1, 2001.
2-22 * * * * *