82R19281 ALB-D
 
  By: Hardcastle H.B. No. 3817
 
  Substitute the following for H.B. No. 3817:
 
  By:  White C.S.H.B. No. 3817
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of the Gainesville Hospital District to
  employ physicians and other health care providers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Section 1077.060, Special
  District Local Laws Code, is amended to read as follows:
         Sec. 1077.060.  [APPOINTMENT AND DISMISSAL OF] STAFF AND
  EMPLOYEES.
         SECTION 2.  Section 1077.060, Special District Local Laws
  Code, is amended by amending Subsections (b) and (c) and adding
  Subsection (b-1) to read as follows:
         (b)  The district may employ technicians, nurses, health
  care providers other than physicians, fiscal agents, accountants,
  architects, additional attorneys, and other necessary employees.
         (b-1)  The district may employ physicians, but only as
  provided by Section 1077.0605.
         (c)  The board may delegate to the district administrator the
  authority to hire district employees, except physicians.
         SECTION 3.  Subchapter B, Chapter 1077, Special District
  Local Laws Code, is amended by adding Section 1077.0605 to read as
  follows:
         Sec. 1077.0605.  EMPLOYMENT OF PHYSICIANS. (a)  The board
  may employ a physician and retain all or part of the professional
  income generated by the physician for medical services provided at
  a hospital or other health care facility owned or operated by the
  district if the board satisfies the requirements of this section.
         (b)  The board shall:
               (1)  appoint a chief medical officer for the district
  who has been recommended by the medical staff of the district; and
               (2)  adopt, maintain, and enforce policies to ensure
  that a physician employed by the district exercises the physician's
  independent medical judgment in providing care to patients.
         (c)  The policies adopted under this section must include:
               (1)  policies relating to:
                     (A)  credentialing and privileges;
                     (B)  quality assurance;
                     (C)  utilization review;
                     (D)  peer review and due process; 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.
         (d)  The policies adopted under this section must be approved
  by the district medical staff. The district medical staff and the
  board shall jointly develop and implement a conflict management
  policy to resolve any conflict between a medical staff policy and a
  board policy.
         (e)  For all matters relating to the practice of medicine,
  each physician employed by the district shall ultimately report to
  the chief medical officer of the district.
         (f)  The chief medical officer shall notify the Texas Medical
  Board that the board is employing physicians under this section and
  that the chief medical officer is the board's designated contact
  with the Texas Medical Board. 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.
         (g)  The board shall give equal consideration regarding the
  issuance of medical staff membership and privileges to physicians
  employed by the district and physicians not employed by the
  district.
         (h)  A physician employed by the district shall retain
  independent medical judgment in providing care to patients and may
  not be disciplined for reasonably advocating for patient care.
         (i)  If the district provides professional liability
  coverage for physicians employed by the district, a physician
  employed by the district may participate in the selection of the
  professional liability coverage, has the right to an independent
  defense at the physician's own cost, and retains the right to
  consent to the settlement of any action or proceeding brought
  against the physician.
         (j)  If a physician employed by the district enters into an
  employment agreement that includes a covenant not to compete, the
  agreement is subject to Section 15.50, Business & Commerce Code.
         (k)  The board may not delegate to the district administrator
  the authority to hire a physician.
         (l)  This section applies to medical services provided by a
  physician at a hospital or other health care facility owned or
  operated by the district.
         (m)  This section may not be construed as authorizing the
  board to supervise or control the practice of medicine as
  prohibited under Subtitle B, Title 3, Occupations Code.
         SECTION 4.  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.