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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 municipal |
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hospital authorities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 262.023, Health and |
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Safety Code, is amended to read as follows: |
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(b) The board may delegate to the manager or executive |
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director the authority to manage the hospital and to employ and |
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discharge employees other than physicians hired in accordance with |
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Section 262.0235. |
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SECTION 2. Subchapter C, Chapter 262, Health and Safety |
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Code, is amended by adding Section 262.0235 to read as follows: |
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Sec. 262.0235. EMPLOYMENT OF PHYSICIANS. (a) This section |
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applies only to an authority that is created by the governing body |
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of a municipality with a population of less than 10,000 and that |
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owns or operates a hospital with more than 50 licensed beds. |
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(b) The board of an authority may employ a physician and |
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retain all or part of the professional income generated by the |
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physician for medical services provided at a hospital or other |
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health care facility owned or operated by the authority if the board |
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satisfies the requirements of this section. |
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(c) The board of an authority shall: |
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(1) appoint a chief medical officer for the authority |
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who has been recommended by the medical staff of the authority; and |
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(2) adopt, maintain, and enforce policies to ensure |
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that a physician employed by the authority exercises the |
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physician's independent medical judgment in providing care to |
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patients. |
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(d) The policies adopted under this section must include: |
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(1) policies relating to: |
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(A) credentialing and privileges; |
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(B) quality assurance; |
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(C) utilization review; |
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(D) peer review and due process; and |
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(E) medical decision-making; and |
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(2) the implementation of a complaint mechanism to |
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process and resolve complaints regarding interference or attempted |
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interference with a physician's independent medical judgment. |
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(e) The policies adopted under this section must be approved |
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by the medical staff of the authority. The medical staff of the |
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authority and the board shall jointly develop and implement a |
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conflict management policy to resolve any conflict between a |
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medical staff policy and a board policy. |
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(f) For all matters relating to the practice of medicine, |
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each physician employed by an authority shall ultimately report to |
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the chief medical officer of the authority. |
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(g) The chief medical officer shall notify the Texas Medical |
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Board that the board is employing physicians under this section and |
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that the chief medical officer is the board's designated contact |
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with the Texas Medical Board. The chief medical officer shall |
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immediately report to the Texas Medical Board any action or event |
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that the chief medical officer reasonably and in good faith |
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believes constitutes a compromise of the independent medical |
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judgment of a physician in caring for a patient. |
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(h) The board of an authority shall give equal consideration |
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regarding the issuance of medical staff membership and privileges |
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to physicians employed by the authority and physicians not employed |
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by the authority. |
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(i) A physician employed by an authority shall retain |
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independent medical judgment in providing care to patients and may |
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not be disciplined for reasonably advocating for patient care. |
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(j) If an authority provides professional liability |
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coverage for physicians employed by the authority, a physician |
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employed by the authority may participate in the selection of the |
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professional liability coverage, has the right to an independent |
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defense at the physician's own cost, and retains the right to |
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consent to the settlement of any action or proceeding brought |
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against the physician. |
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(k) If a physician employed by an authority enters into an |
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employment agreement that includes a covenant not to compete, the |
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agreement is subject to Section 15.50, Business & Commerce Code. |
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(l) The board of an authority may not delegate to the |
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manager or executive director of a hospital owned or operated by the |
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hospital authority the authority to hire a physician. |
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(m) This section may not be construed as authorizing the |
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board to supervise or control the practice of medicine as |
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prohibited under Subtitle B, Title 3, Occupations Code. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |