By:  Delisi (Senate Sponsor - Nelson)                             H.B. No. 2471
	(In the Senate - Received from the House May 16, 2005; 
May 17, 2005, read first time and referred to Committee on Health 
and Human Services; May 20, 2005, reported favorably by the 
following vote:  Yeas 7, Nays 0; May 20, 2005, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to authorizing the Department of State Health Services to 
issue a single license for multiple hospitals.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 241.023, Health and Safety Code, is 
amended by amending Subsection (c) and adding Subsections (c-1) 
through (c-3) to read as follows:
	(c)  Except as provided by Subsection (c-1), the [The] 
department may issue a license only for the premises of a hospital 
and person or governmental unit named in the application.
	(c-1)  The department may issue one license for multiple 
hospitals if:
		(1)  all buildings in which inpatients receive hospital 
services and inpatient services of each of the hospitals to be 
included in the license are subject to the control and direction of 
the same governing body;
		(2)  all buildings in which inpatients receive hospital 
services are within a 30-mile radius of the main address of the 
applicant;
		(3)  there is integration of the organized medical 
staff of each of the hospitals to be included in the license;
		(4)  there is a single chief executive officer for all 
of the hospitals who reports directly to the governing body and 
through whom all administrative authority flows and who exercises 
control and surveillance over all administrative activities of the 
hospital;
		(5)  there is a single chief medical officer for all of 
the hospitals who reports directly to the governing body and who is 
responsible for all medical staff activities of the hospital;
		(6)  each building of a hospital to be included in the 
license that is geographically separate from other buildings of the 
same hospital contains at least one nursing unit for inpatients, 
unless providing only diagnostic or laboratory services, or a 
combination of diagnostic or laboratory services, in the building 
for hospital inpatients; and
		(7)  each hospital that is to be included in the license 
complies with the emergency services standards:
			(A)  for a general hospital, if the hospital 
provides surgery or obstetrical care or both; or
			(B)  for a special hospital, if the hospital does 
not provide surgery or obstetrical care.
	(c-2)  The hospital licensing director may recommend a 
waiver of the requirement of Subsection (c-1)(7) for a hospital if 
another hospital that is to be included in the license:
		(1)  complies with the emergency services standards for 
a general hospital; and
		(2)  is in close geographic proximity to the hospital.                 
	(c-3)  The executive commissioner of the Health and Human 
Services Commission shall adopt rules to implement the waiver 
provision of Subsection (c-2).  The rules must provide for a 
determination by the department that the waiver will facilitate the 
creation or operation of the hospital seeking the waiver and that 
the waiver is in the best interest of the individuals served or to 
be served by the hospital.
	SECTION 2.  Section 241.003(14), Health and Safety Code, is 
repealed.        
	SECTION 3.  The change in law made by this Act applies only 
to an application for a license submitted on or after the effective 
date of this Act.  An application for a license submitted before the 
effective date of this Act is covered by the law in effect on the 
date the application was submitted, and the former law is continued 
in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.                           



* * * * *