79R4144 MFC-D

By:  West                                                         S.B. No. 501



A BILL TO BE ENTITLED

AN ACT

relating to indemnification provisions in health care provider 
contracts.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  The Civil Practice and Remedies Code is amended 
by adding Title 10 to read as follows:

TITLE 10.  ADDITIONAL MISCELLANEOUS PROVISIONS

CHAPTER 503.  INDEMNITY PROVISIONS IN HEALTH CARE

PROVIDER CONTRACTS
	Sec. 503.001.  DEFINITIONS.  In this chapter:                           
		(1)  "Health care provider" means an individual or 
facility licensed, certified, or otherwise authorized to 
administer health care or treatment, for profit or otherwise, in 
the ordinary course of business or professional practice and 
includes a physician or other health care provider, a residential 
care provider, or an inpatient mental health facility as defined by 
Section 571.003, Health and Safety Code.
		(2)  "Health care provider contract" means a contract 
or agreement entered into or made by a health care provider 
concerning any act or treatment performed or furnished by the 
health care provider to a patient that relates to the patient's 
health care, treatment, or confinement.
	Sec. 503.002.  AGREEMENT VOID OR UNENFORCEABLE.  A covenant, 
promise, or understanding contained in a health care provider 
contract, or in an agreement collateral to or affecting a health 
care provider contract, is void and unenforceable if it purports to 
indemnify, hold harmless, or defend a person against loss or 
liability for damage that:
		(1)  is caused by or results from the sole or concurrent 
negligence of the indemnitee, its agent or employee, or an 
independent contractor, other than the indemnitor, directly 
responsible to the indemnitee; and
		(2)  arises or results from:                                           
			(A)  personal injury or death;                                        
			(B)  property damage; or                                              
			(C)  any other loss, damage, or expense that 
arises from an occurrence described by Paragraph (A) or (B).
	Sec. 503.003.  EFFECT ON INSURANCE POLICY.  A provision in a 
health care provider contract requiring an insurance policy 
provision or endorsement that would frustrate or circumvent the 
prohibitions of this chapter, including the payment of all or a 
portion of an indemnitor's insurance premium by an indemnitee, is 
void and unenforceable.
	Sec. 503.004.  CONFLICT OF LAWS.  A covenant, promise, 
agreement, or understanding that is contained in or collateral to 
or that affects a health care provider contract or a related 
insurance policy provision or endorsement and that provides that 
the law of another state will apply to the contractual relationship 
between the indemnitor and the indemnitee is against public policy 
and void if the premises where an act or treatment is performed or 
furnished by the health care provider to the patient under the 
contract are in this state or its territorial reach.
	Sec. 503.005.  WAIVER PROHIBITED.  The provisions of this 
chapter may not be waived by contract or otherwise.  Any purported 
waiver is void and unenforceable.
	Sec. 503.006.  APPLICABILITY OF OTHER LAW.  This chapter 
prevails over any other law that conflicts with or is inconsistent 
with this chapter.
	SECTION 2.  This Act applies to a health care provider 
contract entered into or renewed on or after the effective date of 
this Act.  A health care provider contract entered into or renewed 
before the effective date of this Act is governed by the law in 
effect immediately before the effective date of this Act, and that 
law is continued in effect for that purpose.
	SECTION 3.  This Act takes effect September 1, 2005.