LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session March 27, 2001 TO: Honorable Fred M. Bosse, Chair, House Committee on Civil Practices FROM: John Keel, Director, Legislative Budget Board IN RE: HB3395 by Dunnam (Relating to standards for credentialing of health care providers in health care liability claims.), As Introduced ************************************************************************** * No fiscal implication to the State is anticipated. * ************************************************************************** Local Government Impact The bill would amend the Occupations Code, making a hospital liable to a patient without proof of malice if the facts determine that the members or staff of a medical peer review committee or the members of the governing body of a hospital are negligent with respect to granting medical staff privileges; employment; retaining members of the medical staff whose privileges are expiring; failing to revoke privileges; or failing to place appropriate limitations on privileges; and, that such negligence was a proximate cause of injury to or death of the patient. The hospital would also remain liable for any negligence even if it delegates some functions of the medical peer review process to another person or entity. If a local government owns or operates a hospital, there would be a significant increase in liability insurance for the hospitals and the possibility of a significant increase in legal costs and judgment costs made against the hospital. Source Agencies: 501 Texas Department of Health LBB Staff: JK, TB, DB