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By:  Harris                                                       S.B. No. 1767
	(In the Senate - Filed March 11, 2005; March 30, 2005, read 
first time and referred to Committee on Health and Human Services; 
May 5, 2005, reported favorably by the following vote:  Yeas 9, 
Nays 0; May 5, 2005, sent to printer.)


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 and 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 nonprofit 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 governmental 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.



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