BILL ANALYSIS

S.B. 2151

By: Patrick, Dan

Public Health

Committee Report (Amended)

BACKGROUND AND PURPOSE

Under current law, an ambulatory surgical center cannot assign or share a license. Authorizing an ambulatory surgical center to assign its license under very limited circumstances will result in better access to quality health care for all Texans and allow such centers to better serve their patients and physicians by fully utilizing the choices paid for and covered under a preferred provider benefit plan and available surgical space.

S.B. 2151 updates provisions relating to ambulatory surgical centers and to the provision of services at those centers by certain designated physician groups.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is expressly granted to the executive commissioner of the Health and Human Services Commission in SECTION 3 of this bill.

ANALYSIS

Section 531.0055, Government Code, as amended by Chapter 198 (H.B. 2292), Acts of the 78th Legislature, Regular Session, 2003, expressly grants to the executive commissioner of the Health and Human Services Commission all rulemaking authority for the operation of and provision of services by the health and human services agencies.  Similarly, Sections 1.16-1.29, Chapter 198 (H.B. 2292), Acts of the 78th Legislature, Regular Session, 2003, provide for the transfer of a power, duty, function, program, or activity from a health and human services agency abolished by that act to the corresponding legacy agency.  To the extent practicable, this bill analysis is written to reflect any transfer of rulemaking authority and to update references as necessary to an agency's authority with respect to a particular health and human services program.

S.B. 2151 amends the Health and Safety Code to authorize an ambulatory surgical center to share its license under a sublicense agreement with one or more designated physician groups that is entered into under the terms of a use agreement if the ambulatory surgical center remains responsible for ensuring that the facility and all surgical and other ambulatory surgical center services provided in the facility by any designated physician group comply with the Texas Ambulatory Surgical Center Licensing Act and applicable rules and, at least annually, provides the Department of State Health Services (DSHS) with certain information relating to designated physician groups and use agreements. The bill prohibits a use agreement from covering a transaction paid for under the Medicare or Medicaid program and clarifies that a use agreement is required to comply with all applicable federal laws and regulations.  The bill requires the executive commissioner of the Health and Human Services Commission by rule to prescribe minimum requirements for a use agreement.  The bill defines "designated physician group," "facility," and "use agreement."

S.B. 2151 amends the Insurance Code to define "ambulatory surgical center" and make conforming changes by revising the definitions of "provider" and "institutional provider."  The bill amends the Labor Code to define "ambulatory surgical center" and make conforming changes by revising the definition of "health care facility."

EFFECTIVE DATE

September 1, 2009.

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1:

S.B. 2151 as amended clarifies that the federal regulations with which a use agreement is required to comply include Stark laws and anti-kickback laws and regulations.

S.B. 2151 as amended prohibits the Texas Ambulatory Surgical Center Licensing Act from being construed as repealing or modifying, or creating an exception or affirmative defense to state law relating to the solicitation of patients or other applicable anti-kickback law or regulation, or authorizing or relieving any person from civil or criminal liability for any kick-back or other act or omission prohibited by those laws or regulations.

S.B. 2151 as amended clarifies that the rules prescribing minimum requirements for a use agreement required to be adopted by the executive commissioner of the Health and Human Services Commission must be consistent with all applicable federal laws and regulations, including Stark laws and anti-kickback laws and regulations.