By: Harris S.B. No. 1767
A BILL TO BE ENTITLED
AN ACT
relating to charity care and government-sponsored indigent
health care provided at certain for-profit hospitals.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 311, Health & Safety Code,
is amended by adding Section 311.0435 to read as follows:
Sec. 311.0435. DUTY OF FOR-PROFIT HOSPITALS TO PROVIDE
COMMUNITY BENEFITS. (a) In order to maintain its license, a
hospital, other than a non-profit hospital covered by Section
311.043 or a hospital owned or operated by a political subdivision,
that receives any tax abatement from any political subdivision
shall provide charity care and government-sponsored indigent
health care, in an amount that satisfies the requirements of
subsection (b). A determination of the amount of charity care and
government-sponsored indigent health care provided by a hospital
shall be based on the most recently completed and audited prior
fiscal year of the hospital.
(b) Charity care shall be provided in an amount equal
to at least five percent of the hospital's net patient revenue,
provided that government-sponsored indigent health care is
provided in an amount equal to at least four percent of net patient
revenue.
(c) Reductions in the amount of charity care and
government-sponsored indigent health care provided by a hospital
shall be considered reasonable if the hospital, as a result of a
natural or other disaster, is required substantially to curtail its
operations.
(d) A hospital's admissions policy must provide for
the admission of financially indigent and medically indigent
persons.
(e) For the purpose of this section, "political
subdivision" means a county, municipality, special district,
school district, or other government subdivision of the state.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.