By: Chisum H.B. No. 729
 
  Substitute the following for H.B. No. 729:
 
  By:  Jackson C.S.H.B. No. 729
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the board of directors of the Ochiltree
  County Hospital District to employ health care providers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1071.062, Special District Local Laws
  Code, is amended by amending Subsections (b) and (c) and adding
  Subsection (d) to read as follows:
         (b)  The board may employ physicians, technicians, nurses,
  other health care providers, fiscal agents, accountants, and other
  necessary employees.
         (c)  The board may delegate to the district administrator the
  authority to hire employees under Subsection (b) other than
  physicians.
         (d)  This subchapter may not be construed as authorizing the
  governing body of a hospital to supervise or control the practice of
  medicine, as prohibited under Subtitle B, Title 3, Occupations
  Code.
         SECTION 2.  Section 1071.064, Special District Local Laws
  Code, is amended by adding Subsections (b), (c), (d), (e), (f), and
  (g) to read as follows:
         (b)  The board may employ a physician and retain all or part
  of the professional income generated by the physician for medical
  services provided at the hospital and other health facilities owned
  or operated by the hospital if the hospital satisfies the
  requirements of this subchapter.
         (c)  The board shall:
               (1)  appoint a chief medical officer, who may be a
  member of the hospital's medical staff; and
               (2)  adopt, maintain, and enforce policies to ensure
  that a physician employed by the hospital exercises the physician's
  independent medical judgment in providing care to patients at the
  hospital.
         (d)  The policies adopted under this section must include:
               (1)  policies relating to:
                     (A)  credentialing;
                     (B)  quality assurance;
                     (C)  utilization review;
                     (D)  peer review; and
                     (E)  medical decision-making; and
               (2)  the implementation of a complaint mechanism to
  process and resolve complaints regarding interference or attempted
  interference with a physician's independent medical judgment.
         (e)  For all matters relating to the practice of medicine,
  each physician employed by the hospital under this subchapter shall
  ultimately report to the chief medical officer of the hospital.
         (f)  The policies adopted under this section:
               (1)  must be approved by the chief medical officer of
  the hospital; and
               (2)  shall control and prevail in the event of a
  conflict with any other policies of a hospital under this
  subchapter.
         (g)  The chief medical officer shall immediately report to
  the Texas Medical Board any action or event that the chief medical
  officer reasonably and in good faith believes constitutes a
  compromise of the independent medical judgment of a physician in
  caring for a patient."
         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, 2011.