81R4237 ALB-F
 
  By: Duncan S.B. No. 1500
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the employment of physicians by certain hospitals.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 311, Health and Safety Code, is amended
  by adding Subchapter E to read as follows:
  SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS
         Sec. 311.061.  APPLICABILITY OF SUBCHAPTER.  This subchapter
  applies only to a hospital that:
               (1)  is designated as a critical access hospital under
  the authority of and in compliance with 42 U.S.C. Section 1395i-4;
               (2)  is a sole community hospital, as that term is
  defined by 42 U.S.C. Section 1395ww(d)(5)(D)(iii);  or
               (3)  is located in a county with a population of 50,000
  or less.
         Sec. 311.062.  EMPLOYMENT OF PHYSICIAN PERMITTED. (a)  A
  hospital may employ a physician and retain all or part of the
  professional income generated by the physician for medical services
  provided at the hospital.
         (b)  A hospital located in a county with a population of
  50,000 or less may continue to employ any physicians employed by the
  hospital on or before the date of release of a federal decennial
  census that shows the county's population exceeds 50,000. The
  hospital may not employ a new physician after that date.
         Sec. 311.063.  HOSPITAL POLICIES. (a) A hospital shall
  adopt and maintain policies to ensure that a physician employed
  under this subchapter whose professional income is retained under
  Section 311.062 exercises the physician's independent medical
  judgment in providing care to patients at the hospital.
         (b)  The policies adopted under this section must include
  policies relating to:
               (1)  credentialing;
               (2)  quality assurance;
               (3)  utilization review;
               (4)  peer review;
               (5)  medical decision-making; and
               (6)  due process.
         Sec. 311.064.  CREDENTIALING AND PRIVILEGES. (a) A
  physician employed by a hospital is subject to the same standards
  and procedures regarding credentialing, peer review, quality of
  care, and privileges as a physician not employed by the hospital.
         (b)  A hospital shall give equal consideration regarding the
  issuance of credentials and privileges to physicians employed by
  the hospital and physicians not employed by the hospital.
         Sec. 311.065.  OTHER HOSPITAL-PHYSICIAN RELATIONSHIPS.
  This subchapter may not be construed as altering, voiding, or
  prohibiting any relationship between a hospital and a physician,
  including a contract or arrangement with an approved nonprofit
  health corporation that is certified under Section 162.001(b),
  Occupations Code, and that holds a certificate of authority issued
  under Chapter 844, Insurance Code.
         SECTION 2.  This Act takes effect September 1, 2009.