77R13557 MXM-F                          
         By Carona                                             S.B. No. 1143
         Substitute the following for S.B. No. 1143:
         By Seaman                                         C.S.S.B. No. 1143
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the credentialing of physicians and health care
 1-3     providers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. The Texas Health Maintenance Organization Act
 1-6     (Chapter 20A, Vernon's Texas Insurance Code) is amended by adding
 1-7     Section 39 to read as follows:
 1-8           Sec. 39.  CREDENTIALING OF PHYSICIANS AND PROVIDERS. (a)
 1-9     Rules adopted by the commissioner under Section 37 of this Act that
1-10     relate to implementation and maintenance by a health maintenance
1-11     organization of a process for selecting and retaining affiliated
1-12     physicians and providers must comply with:
1-13                 (1)  this section; and
1-14                 (2)  standards promulgated by the National Committee
1-15     for Quality Assurance, to the extent those standards do not
1-16     conflict with other laws of this state.
1-17           (b)  The commissioner shall require a health maintenance
1-18     organization to verify that a physician's license to practice
1-19     medicine and any other certificate the physician is required to
1-20     hold, including a certificate issued by the Department of Public
1-21     Safety of the State of Texas or the federal Drug Enforcement Agency
1-22     or a certificate issued under the Medicare program, is valid as of
1-23     the date of initial credentialing and on the date of each
1-24     recredentialing.
 2-1           (c)  The commissioner shall require a health maintenance
 2-2     organization that conducts a site visit for the purpose of initial
 2-3     credentialing to evaluate during the visit a site's accessibility,
 2-4     appearance, space, medical or dental recordkeeping practices,
 2-5     availability of appointments, and confidentiality procedures.  The
 2-6     commissioner may not require the health maintenance organization to
 2-7     evaluate the appropriateness of equipment during the site visit.
 2-8           (d)  The commissioner may not require that a health
 2-9     maintenance organization:
2-10                 (1)  formally recredential physicians or providers more
2-11     frequently than once in any three-year period;
2-12                 (2)  verify the validity of a license or certificate
2-13     held by a physician other than as of the date of initial
2-14     credentialing or recredentialing of the physician;
2-15                 (3)  use clinical personnel to perform a site visit for
2-16     initial credentialing of a physician or provider unless clinical
2-17     review is needed during the site visit; or
2-18                 (4)  require a site visit be performed for
2-19     recredentialing of a physician or provider.
2-20           (e)  This section does not preclude a health maintenance
2-21     organization from performing a site visit of a physician or
2-22     provider at any time for cause, including a complaint made by a
2-23     member or another external complaint made to the health maintenance
2-24     organization.
2-25           SECTION 2.  Subchapter E, Chapter 21, Insurance Code, is
2-26     amended by adding Article 21.58D to read as follows:
2-27           Art. 21.58D.  STANDARDIZED FORM FOR VERIFICATION OF PHYSICIAN
 3-1     CREDENTIALS
 3-2           Sec. 1.  DEFINITION. In this article, "physician" means an
 3-3     individual licensed to practice medicine in this state.
 3-4           Sec. 2.  STANDARDIZED FORM. (a)  The commissioner by rule
 3-5     shall:
 3-6                 (1)  adopt a standardized form for the verification of
 3-7     the credentials of a physician; and
 3-8                 (2)  require that a public or private hospital, a
 3-9     health maintenance organization operating under the Texas Health
3-10     Maintenance Organization Act (Chapter 20A, Vernon's Texas Insurance
3-11     Code), or a preferred provider organization operating under Article
3-12     3.70-3C, Insurance Code, as added by Chapter 1024, Acts of the 75th
3-13     Legislature, Regular Session, 1997, use the form for verification
3-14     of credentials.
3-15           (b)  In adopting a form under Subsection (a) of this section,
3-16     the commissioner shall consider any credentialing application form
3-17     that is widely used in this state.
3-18           SECTION 3.  (a)  The Texas State Board of Medical Examiners
3-19     shall study the establishment of a program for standardized
3-20     credentials verification through using a credentialing information
3-21     system.
3-22           (b)  Not later than January 1, 2003, the Texas State Board of
3-23     Medical Examiners shall report on its recommendations for proposed
3-24     legislation, based on the study conducted under Subsection (a) of
3-25     this section, to:
3-26                 (1)  the governor;
3-27                 (2)  the lieutenant governor; and
 4-1                 (3)  the speaker of the house of representatives.
 4-2           SECTION 4.  This Act takes effect September 1, 2001.