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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
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        |  | relating to the authority of the board of directors of the | 
      
        |  | Nacogdoches County Hospital District to employ physicians. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  The heading to Section 1069.060, Special | 
      
        |  | District Local Laws Code, as effective April 1, 2013, is amended to | 
      
        |  | read as follows: | 
      
        |  | Sec. 1069.060.  [ APPOINTMENT OF] STAFF AND EMPLOYEES. | 
      
        |  | SECTION 2.  Section 1069.060, Special District Local Laws | 
      
        |  | Code, as effective April 1, 2013, is amended by adding Subsection | 
      
        |  | (b-1) and amending Subsection (c) to read as follows: | 
      
        |  | (b-1)  The board may employ physicians, but only as provided | 
      
        |  | by Section 1069.0605. | 
      
        |  | (c)  Except as provided by Section 1069.0605, the [ The] board | 
      
        |  | may provide that the district administrator has the authority to | 
      
        |  | employ district employees, including technicians and nurses. | 
      
        |  | SECTION 3.  Subchapter B, Chapter 1069, Special District | 
      
        |  | Local Laws Code, as effective April 1, 2013, is amended by adding | 
      
        |  | Section 1069.0605 to read as follows: | 
      
        |  | Sec. 1069.0605.  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 chief executive | 
      
        |  | officer of the district 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)  The authority granted to the board under this section to | 
      
        |  | employ physicians shall apply as necessary for the district to | 
      
        |  | fulfill the district's statutory mandate to provide medical care | 
      
        |  | for the indigent and needy residents of the district as provided by | 
      
        |  | Section 1069.101. | 
      
        |  | (n)  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, 2013. | 
      
        |  |  | 
      
        |  | * * * * * |