BILL ANALYSIS
Senate Research Center H.B. 2168
80R7807 ABC-F By: Hill, Cook, Robby (Carona)
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
Municipal and county hospital authorities are authorized by law to construct and operate hospitals for the benefit of the public. The growing trend in health care is for hospitals to enter into joint ventures with physicians to own and operate ancillary health care facilities, such as day surgery centers or imaging centers. However, under current law, municipal and county hospitals authorities are not allowed to form or sponsor nonprofit corporations, making those hospitals less competitive.
H.B. 2168 authorizes hospital authorities and districts to use innovative methods to deliver health care services by allowing a district or an authority to create a nonprofit corporation and to own and operate an ancillary health care facility.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter C, Chapter 262, Health and Safety Code, by adding Sections 262.037 and 262.038, as follows:
Sec. 262.037. ESTABLISHMENT OF NONPROFIT CORPORATION. (a) Authorizes a hospital authority created under this chapter (Municipal Hospital Authorities) (municipal hospital authority) to form and sponsor a nonprofit corporation under the Texas Nonprofit Corporation Law, as described by Section 1.008, Business Organization Code, to own and operate all or part of one or more ancillary health care facilities consistent with the purposes of a municipal hospital authority under this chapter.
(b) Requires the board of directors of a municipal hospital authority to appoint the board of directors of a nonprofit corporation formed under this section.
(c) Authorizes the municipal hospital authority to contribute money to or solicit money for the nonprofit corporation. Requires the municipal hospital authority to establish procedures and controls sufficient to ensure that the money is used by the corporation for public purposes if the authority contributes or solicits money for the corporation.
(d) Provides that a nonprofit corporation formed under this section has the same powers as a development corporation under Section 221.030 (Corporations General Powers).
Sec. 262.038. HOSPITAL AUTHORITY CONTRACTS, COLLABORATIONS, AND JOINT VENTURES. Authorizes the municipal hospital authority, directly or through any nonprofit corporation formed by the municipal hospital authority, to contract, collaborate, or enter into a joint venture with any public or private entity as necessary to carry out the functions of or provide services to the municipal hospital authority.
SECTION 2. Amends Subchapter C, Chapter 264, Health and Safety Code, by adding Sections 264.035 and 264.036, as follows:
Sec. 264.035. ESTABLISHMENT OF NONPROFIT CORPORATION. (a) Authorizes a hospital authority created under this chapter (County Hospital Authorities) (county hospital authority) to form and sponsor a nonprofit corporation under the Texas Nonprofit Corporation Law, as described by Section 1.008, Business Organizations Code, to own and operate all or part of one or more ancillary health care facilities consistent with the purposes of a county hospital authority under this chapter.
(b) Requires the board of directors of a county hospital authority to appoint the board of directors of a nonprofit corporation formed under this section.
(c) Authorizes the county hospital authority to contribute money to or solicit money for the nonprofit corporation. Requires the county hospital authority to establish procedures and controls sufficient to ensure that the money is used by the corporation for public purposes if the county hospital authority contributes or solicits money for the corporation.
(d) Provides that a nonprofit corporation formed under this section has the same powers as a development corporation under Section 221.030.
Sec. 262.038. HOSPITAL AUTHORITY CONTRACTS, COLLABORATIONS, AND JOINT VENTURES. Authorizes the county hospital authority, directly or through any nonprofit corporation formed by the county hospital authority, to contract, collaborate, or enter into a joint venture with any public or private entity as necessary to carry out the functions of or provide services to the county hospital authority.
SECTION 3. Amends Section 285.091(a), Health and Safety Code, to authorize a hospital district created under general or special law, directly or through a nonprofit corporation created or formed by the district, to contract, collaborate, or enter into a joint venture with any public or private entity as necessary to carry out the functions of or provide services to the district, rather than to form or carry out the functions of or provide services to an intergovernmental initiative under Section 16B, Article 4413(502), Revised Statutes.
SECTION 4. Effective date: upon passage or September 1, 2007.