S.B. No. 311
  relating to the authority of the board of directors of the Ochiltree
  County Hospital District to employ physicians and other health care
         SECTION 1.  Section 1071.062, Special District Local Laws
  Code, is amended by amending Subsection (b) and adding Subsection
  (d) to read as follows:
         (b)  The board may employ technicians, nurses, health care
  providers other than physicians, fiscal agents, accountants, and
  other necessary employees.
         (d)  The board may employ physicians, but only as provided by
  Section 1071.0625.
         SECTION 2.  Subchapter B, Chapter 1071, Special District
  Local Laws Code, is amended by adding Section 1071.0625 to read as
         Sec. 1071.0625.  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 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;
               (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;
                     (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.
         (d)  The policies adopted under this section:
               (1)  must be approved by the chief medical officer of
  the district; and
               (2)  shall prevail over a conflicting policy of the
         (e)  For all matters relating to the practice of medicine,
  each physician employed by the board shall ultimately report to the
  chief medical officer of the district.
         (f)  The chief medical officer will report immediately 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 may not delegate to the district administrator
  the authority to hire a physician.
         (h)  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 3.  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.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I hereby certify that S.B. No. 311 passed the Senate on
  March 31, 2011, by the following vote:  Yeas 31, Nays 0.
  Secretary of the Senate    
         I hereby certify that S.B. No. 311 passed the House on
  May 20, 2011, by the following vote:  Yeas 148, Nays 1, one
  present not voting.
  Chief Clerk of the House