79R6421 DLF-D

By:  Brown of Kaufman                                             H.B. No. 3316



A BILL TO BE ENTITLED

AN ACT

relating to physician referrals to certain facilities providing 
speciality services.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 108.011, Health and Safety Code, is 
amended by adding Subsection (c-1) to read as follows:
	(c-1) The council shall use public use data to prepare and 
issue reports that provide information for review and analysis by 
the Health and Human Services Commission and the Texas Department 
of Insurance relating to services that are provided in a hospital, 
ambulatory surgical center, or imaging center and that are provided 
by a physician with an ownership interest in the facility.
	SECTION 2.  Subtitle G, Title 4, Health and Safety Code, is 
amended by adding Chapter 323 to read as follows:

CHAPTER 323.  CERTAIN FACILITIES PROVIDING SPECIALTY SERVICES
	Sec. 323.001.  APPLICABILITY OF CHAPTER.  This chapter 
applies only to a facility that is:
		(1)  a hospital licensed under Chapter 241 that:                       
			(A)  limits admissions according to one or more 
medical or surgical specialties, types of disease, or medical 
conditions; or
			(B) limits hospital services to specified 
surgical, diagnostic, or treatment procedures;
		(2)  an ambulatory surgical center licensed under 
Chapter 243; or    
		(3)  a facility that primarily provides imaging 
services and related services.
	Sec. 323.002.  RULES.  The executive commissioner of the 
Health and Human Services Commission shall adopt rules governing 
the disclosure required by this chapter.
	Sec. 323.003.  DISCLOSURE OF PHYSICIAN OWNERSHIP INTEREST.  
(a)  A facility subject to this chapter shall disclose the name of 
each physician who has any ownership interest in the facility. The 
disclosure must be:
		(1)  posted in signs prominently displayed at the 
facility;          
		(2)  provided to each patient before the patient 
receives services at the facility;
		(3)  stated in advertising, brochures, and similar 
materials that publicize the facility; and
		(4)  stated on any Internet site maintained by the 
facility.         
	(b)  A facility is not required to provide the disclosure 
required by Subsection (a)(2) before providing urgent or emergency 
services.
	SECTION 3.  Subchapter B, Chapter 162, Occupations Code, is 
amended by adding Sections 162.052 and 162.053 to read as follows:
	Sec. 162.052.  NOTICE OF CERTAIN OWNERSHIP INTERESTS.  (a)  A 
physician shall notify the board and the Department of State Health 
Services of any ownership interest held by the physician in a 
facility described by Section 323.001, Health and Safety Code.
	(b)  The board, in consultation with the Department of State 
Health Services, shall adopt rules governing the form and content 
of the notice required by Subsection (a).
	Sec. 162.053.  TEMPORARY MORATORIUM ON REFERRAL TO CERTAIN 
FACILITIES.  (a)  A physician may not refer a patient to a facility 
described by Section 323.001, Health and Safety Code, if:
		(1)  the physician holds any ownership interest in the 
facility; and 
		(2)  the facility was not providing services before 
September 1, 2005.
	(b)  This section expires September 1, 2007.                            
	SECTION 4.  The heading to Subchapter B, Chapter 162, 
Occupations Code, is amended to read as follows:

SUBCHAPTER B.  OWNERSHIP OR FORMATION OF [AUTHORITY TO FORM] 
CERTAIN ENTITIES
	SECTION 5.  (a)  In this section, "niche facility" means a 
facility described by Section 323.001, Health and Safety Code.
	(b)  The Health and Human Services Commission and the Texas 
Department of Insurance shall jointly conduct a study regarding the 
proliferation of niche facilities in this state and physician 
referrals to niche facilities owned in whole or part by the 
physician.
	(c)  The study must include:                                                   
		(1)  a comprehensive review of the provision of 
services by niche facilities owned in whole or part by physicians; 
and
		(2)  a comprehensive analysis of:                                             
			(A)  the financial impact on full-service 
community hospitals of referrals by physicians to niche facilities 
owned in whole or part by the referring physicians; and
			(B)  the impact of referrals described by 
Paragraph (A) of this subdivision on access to health care in rural 
and smaller urban areas in this state.
	(d)  Not later than December 1, 2006, the Health and Human 
Services Commission and the Texas Department of Insurance shall 
jointly submit a report to the governor, the lieutenant governor, 
the speaker of the house of representatives, and the appropriate 
standing committees of the legislature regarding the results of the 
study conducted under this section.
	(e)  This section expires September 1, 2007.                                   
	SECTION 6.  This Act takes effect September 1, 2005.