MINUTES 
                                           
            SENATE COMMITTEE ON PROMPT PAYMENT OF HEALTH CARE PROVIDERS 
                              Friday, October 18, 2002 
                                     9:30 a.m. 
                                   Senate Chamber 
                                           
                                       ***** 
                                           
         Pursuant to a notice posted in accordance with Senate Rule  
         11.18, a public hearing of the Senate Committee on Prompt  
         Payment of Health Care Providers was held on Friday, October 18,  
         2002, in the Senate Chamber at Austin, Texas. 
          
                                       ***** 
                                           
         MEMBERS PRESENT:                        MEMBERS ABSENT: 
         Senator Jane Nelson                     Senator John Carona 
         Senator Troy Fraser                     Senator Mario Gallegos,  
                                                 Jr. 
                                                 Senator Judith Zaffirini 
                                           
                                       ***** 
                                           
         The Chair called the meeting to order at 9:34 a.m.  The  
         following business was transacted. 
          
         The Chair made opening remarks and announced that the purpose of  
         this hearing was to solicit and consider public testimony on the  
         committee's charge relating to medical malpractice liability  
         insurance:  to evaluate the effectiveness of existing state law  
         and agency rules relating to the current medical professional  
         liability system; and to assess the causes of rising malpractice  
         insurance rates in Texas, including the impact of medical  
         malpractice lawsuits and their impact on access to health care. 
          
         The Chair invited Cheye Calvo, Committee Director of the  
         Financial Services Standing Committee, National Conference of  
         State Legislatures, to provide testimony before the committee  
         regarding national trends and other states' legislative  
         responses relating to the medical liability insurance crisis. 
          
         Cheye Calvo provided a Power Point presentation and responded to  
         questions by members of the Committee. 
          
         There being no further questions for this witness, the Chair  
         called David Durden, Associate Commissioner for Governmental  
         Relations, Texas Department of Insurance, to respond to  
         questions by Senator Fraser. 
          
         There being no further questions for this witness, the Chair  
         called David Duffner, M.D., Orthopedic Surgeon - Travis  
         Orthopedic and Sports Specialists, P.A.; Bill Hammond, President  
  
         and CEO - Texas Association of Business; Tommy Jacks, Attorney -  
         Mithoff & Jacks; Reggie James, Director - Consumers Union  
         Southwest Regional Office; and Michael Regier, Vice President  
         and General Counsel - Seton Network, to discuss matters relating  
         to rising malpractice insurance rates in Texas and their impact  
         on patient access to health care. 
          
         The invited witnesses provided oral testimony and responded to  
         questions by members of the Committee. 
          
         There being no further questions for these witnesses, the Chair  
         invited David Kramer, Attorney - Texas Legislative Council, to  
         testify regarding the legislative history of tort reform in  
         Texas relating to the medical malpractice issue. 
          
         The witness provided oral testimony and responded to questions  
         by members of the Committee. 
          
         There being no further questions for this witness, the Chair  
         opened the hearing to public testimony. 
          
         Witnesses testifying are shown on the attached list. 
          
         There being no further business, at 1:58 p.m., Senator Nelson  
         moved that the Committee stand recessed subject to the call of  
         the chair.  Without objection, it was so ordered.   
          
         ______________________ 
         Senator Jane Nelson, Chair 
          
         ______________________ 
         Cheri Huddleston, Clerk