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A BILL TO BE ENTITLED
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AN ACT
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relating to the employment of physicians by certain hospitals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 311, Health and Safety Code, is amended |
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by adding Subchapter E to read as follows: |
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SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS |
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Sec. 311.061. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies only to a hospital that: |
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(1) is designated as a critical access hospital under |
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the authority of and in compliance with 42 U.S.C. Section 1395i-4; |
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(2) is a sole community hospital, as that term is |
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defined by 42 U.S.C. Section 1395ww(d)(5)(D)(iii); or |
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(3) is located in a county with a population of 50,000 |
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or less. |
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Sec. 311.062. EMPLOYMENT OF PHYSICIAN PERMITTED. (a) A |
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hospital may employ a physician and retain all or part of the |
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professional income generated by the physician for medical services |
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provided at the hospital. |
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(b) A hospital located in a county with a population of |
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50,000 or less may continue to employ any physicians employed by the |
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hospital on or before the date of release of a federal decennial |
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census that shows the county's population exceeds 50,000. The |
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hospital may not employ a new physician after that date. |
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Sec. 311.063. HOSPITAL POLICIES. (a) A hospital shall |
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adopt and maintain policies to ensure that a physician employed |
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under this subchapter whose professional income is retained under |
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Section 311.062 exercises independent medical judgment when |
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providing care to patients at the hospital. |
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(b) The policies adopted under this section must include |
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policies relating to: |
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(1) credentialing; |
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(2) quality assurance; |
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(3) utilization review; |
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(4) peer review; |
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(5) medical decision-making; and |
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(6) due process. |
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Sec. 311.064. CREDENTIALING AND PRIVILEGES. (a) A |
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physician employed by a hospital under this subchapter is subject |
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to the same standards and procedures regarding credentialing, peer |
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review, quality of care, and privileges as a physician not employed |
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by the hospital. |
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(b) A hospital shall give equal consideration regarding the |
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issuance of credentials and privileges to physicians employed by |
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the hospital and physicians not employed by the hospital. |
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Sec. 311.065. OTHER HOSPITAL-PHYSICIAN RELATIONSHIPS. |
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This subchapter may not be construed as altering, voiding, or |
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prohibiting any relationship between a hospital and a physician, |
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including a contract or arrangement with an approved nonprofit |
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health corporation that is certified under Section 162.001(b), |
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Occupations Code, and that holds a certificate of authority issued |
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under Chapter 844, Insurance Code. |
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SECTION 2. Section 162.001, Occupations Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) The board shall certify a health organization to employ |
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physicians licensed by the board if the organization: |
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(1) is a critical access hospital under the authority |
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of and in compliance with 42 U.S.C. Section 1395i-4; |
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(2) is a sole community hospital, as that term is |
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defined by 42 U.S.C. Section 1395ww(d)(5)(D)(iii); or |
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(3) is located in a county with a population of 50,000 |
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or less. |
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SECTION 3. Subchapter A, Chapter 162, Occupations Code, is |
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amended by adding Section 162.004 to read as follows: |
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Sec. 162.004. EMPLOYER AND EMPLOYEE REQUIREMENTS. The |
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following requirements apply to an organization certified under |
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Section 162.001(d) that employs physicians: |
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(1) a physician shall retain independent medical |
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judgment in providing care to patients at the organization and may |
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not be penalized for reasonably advocating for patient care; |
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(2) the organization shall provide a certain portion |
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of medical services free of charge, or at a reduced fee commensurate |
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with a patient's ability to pay; |
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(3) a physician employed by the organization shall |
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participate in the provision of services under Subdivision (2); |
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(4) an organization may not include a non-compete |
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clause on termination in a physician employment contract; and |
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(5) a physician who has privileges at the organization |
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and is employed by the hospital and a physician who is not employed |
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by the hospital must be given equal consideration and treatment in |
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the creation and execution of all medical staff bylaw provisions |
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regardless of the physician's employer. |
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SECTION 4. This Act takes effect September 1, 2009. |
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