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
  
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*  No fiscal implication to the State is anticipated.                    *
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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