MINUTES 
                                           
            SENATE COMMITTEE ON PROMPT PAYMENT OF HEALTH CARE PROVIDERS 
                             Thursday, August 15, 2002 
                                     9:30 a.m. 
                         University of Texas at San Antonio 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Prompt  
         Payment of Health Care Providers was held on Thursday, August  
         15, 2002 at the University of Texas at San Antonio in San  
         Antonio, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Jane Nelson                     Senator John Carona 
         Senator Mario Gallegos, Jr.             Senator Troy Fraser 
                                                 Senator Judith Zaffirini 
                                           
                                       ***** 
                                           
         The Chair called the meeting to order at 9:45 a.m.  The  
         following business was transacted. 
          
         The Chair made opening remarks thanking the University of Texas  
         at San Antonio for hosting the hearing and announced that the  
         purpose of this hearing was to solicit and consider public  
         testimony on the interim charges assigned to the committee by  
         Lieutenant Governor Bill Ratliff:  (1) to evaluate the  
         effectiveness of existing state law and agency rules designed to  
         ensure prompt payment of health insurance claims to providers by  
         insurance companies; (2) to assess the level of industry  
         compliance with current law and the necessity of additional  
         enforcement measures; (3) to determine the factors affecting the  
         timeliness of reimbursements and make necessary recommendations  
         to improve the process; (4) to evaluate the effectiveness of  
         existing state law and agency rules relating to the current  
         medical professional liability system; and (5) to assess the  
         causes of rising malpractice insurance rates in Texas, including  
         the impact of medical malpractice lawsuits, and their impact on  
         access to health care. 
          
         The Chair recognized Senator Jeff Wentworth who gave welcoming  
         remarks to the Committee. 
          
         The Chair recognized Senator Leticia Van de Putte who gave  
         welcoming remarks to the Committee. 
          
         The Chair invited Jose Montemayor, Commissioner of the Texas  
         Department of Insurance, to explain the purpose of medical  
  
         liability insurance and to provide an overview of the current  
         medical malpractice market in Texas. 
          
         Commissioner Montemayor provided written and oral testimony and  
         responded to questions by members of the Committee. 
          
         There being no further questions for this witness, the Chair  
         invited Joe Cunningham, M.D., Providence Health Center; Vicky  
         Gould, Vice President of Claims, American Physicians Insurance  
         Exchange; Darrell Keith, Attorney, Darrell Keith Law Firm; and  
         Beth A. Peters, Vice President and Senior Attorney, Texas Health  
         Resources, to discuss matters relating to rising malpractice  
         insurance rates in Texas and their impact on access to health  
         care. 
          
         The invited witnesses provided written and oral testimony and  
         responded to questions by members of the Committee. 
          
         The Chair recognized Dr. Ricardo Romo, President, University of  
         Texas at San Antonio who gave welcoming remarks to the  
         Committee. 
          
         The Chair opened the hearing to public testimony. 
          
         Witnesses testifying and registering on the charge of medical  
         malpractice are shown on the attached list. 
          
         The Chair called Elton Bomer to provide testimony to the  
         Committee regarding discussions among interested parties  
         relating to outstanding prompt payment issues. 
          
         Elton Bomer provided written and oral testimony and responded to  
         questions by members of the Committee. 
          
         There being no further questions for this witness, the Chair  
         called Commissioner Jose Montemayor to explain the status of  
         efforts by the Texas Department of Insurance Clean Claims  
         Working Group to resolve outstanding issues relating to prompt  
         payment of health care providers.  
          
         Commissioner Jose Montemayor provided written and oral testimony  
         and responded to questions by members of the Committee. 
          
         There being no further questions for this witness, the Chair  
         opened the hearing to public testimony. 
          
         Witnesses testifying and registering on the charge of prompt  
         payment are shown on the attached list.                                
          
         There being no further business, at 4:25 p.m. Senator Nelson  
         moved that the Committee stand recessed subject to the call of  
         the chair.  Without objection, it was so ordered.   
          
         ______________________ 
         Senator Jane Nelson, Chair 
          
         ______________________ 
         Cheri Huddleston, Clerk