78R13687 DLF-F


By:  Capelo                                                       H.B. No. 3310

Substitute the following for H.B. No. 3310:                                   

By:  Truitt                                                   C.S.H.B. No. 3310



A BILL TO BE ENTITLED

AN ACT

relating to subrogation for certain costs of services provided by a 
public hospital or hospital district; providing penalties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter C, Chapter 61, Health and Safety 
Code,  is amended by adding Section 61.067 to read as follows:
	Sec. 61.067.  SUBROGATION.  (a)  The filing of an application 
for or receipt of services constitutes an assignment of the 
applicant's or recipient's right of recovery from:
		(1)  personal insurance;                                               
		(2)  other sources; or                                                 
		(3)  another person for personal injury caused by the 
other person's negligence or wrong.
	(b)  A person who applies for or receives services shall 
inform the public hospital or hospital district, at the time of 
application or at any time during eligibility, of any unsettled 
tort claim that may affect health care needs and of any private 
accident or health insurance coverage or similar coverage that is 
or may become available. An applicant or eligible resident shall 
inform the public hospital or hospital district of any injury that 
is caused by the act or failure to act of some other person. An 
applicant or eligible resident shall inform the public hospital or 
hospital district as required by this subsection not later than the 
10th day after the date the person learns of the person's insurance 
coverage, tort claim, or potential cause of action.
	(c)  A claim for damages for personal injury does not 
constitute grounds for denying or discontinuing services under this 
chapter.
	(d)  A separate and distinct cause of action in favor of the 
public hospital, the hospital district, or a physician with staff 
privileges at the public hospital or an appropriate hospital within 
the hospital district is created under this section, and the public 
hospital, hospital district, or physician may, without written 
consent, take direct civil action in any court of competent 
jurisdiction. A suit brought under this section need not be 
ancillary to or dependent on any other action.
	(e)  The public hospital's or hospital district's right of 
recovery is limited to the amount of the cost of services paid by 
the public hospital or hospital district. Other subrogation rights 
granted under this section are limited to the cost of the services 
provided, including those services provided by a physician.
	(f)  An applicant or eligible resident who knowingly and 
intentionally fails to disclose the information required by 
Subsection (b) commits a Class C misdemeanor.
	(g)  An applicant or eligible resident who knowingly and 
intentionally fails to disclose the information required by 
Subsection (b) is subject to denial of services under this chapter 
following an administrative hearing.
	(h)  Procedures established by a public hospital or hospital 
district for administrative hearings under this section must 
provide for appropriate due process, including procedures for 
appeals.
	SECTION 2.  This Act applies only to the filing of an 
application for services or receipt of services as described by 
Section 61.067, Health and Safety Code, as added by this Act, on or 
after the effective date of this Act.
	SECTION 3.  This Act takes effect September 1, 2003.