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AN ACT
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relating to the employment of physicians by certain hospitals |
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associated with nonprofit fraternal organizations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 311, Health and Safety Code, is amended |
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by adding Subchapter E to read as follows: |
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SUBCHAPTER E. EMPLOYMENT OF PHYSICIANS BY CERTAIN HOSPITALS |
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ASSOCIATED WITH NONPROFIT FRATERNAL ORGANIZATIONS |
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Sec. 311.061. APPLICABILITY OF SUBCHAPTER. This subchapter |
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applies only to a hospital that employs or seeks to employ a |
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physician, that primarily provides medical care to children younger |
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than 18 years of age, and that: |
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(1) is owned or operated by a nonprofit fraternal |
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organization; or |
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(2) has a governing body the majority of members of |
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which belong to a nonprofit fraternal organization. |
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Sec. 311.062. EMPLOYMENT OF PHYSICIANS PERMITTED. (a) A |
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hospital may employ a physician and retain all or part of the |
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professional income generated by the physician for medical services |
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provided at the hospital if the hospital satisfies the requirements |
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of this subchapter. |
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(b) The billing and receipt of third-party reimbursement |
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for medical care at a hospital does not affect the authority granted |
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to the hospital under this section. |
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Sec. 311.063. DUTIES AND HOSPITAL POLICIES. (a) A |
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hospital that employs physicians under this subchapter shall: |
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(1) appoint a chief medical officer, who may be a |
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member of the hospital's medical staff; |
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(2) adopt, maintain, and enforce policies to ensure |
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that a physician employed by the hospital exercises the physician's |
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independent medical judgment in providing care to patients at the |
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hospital; and |
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(3) designate the chief medical officer as the contact |
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for the Texas Medical Board for all matters relating to complaints |
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regarding interference or attempted interference with a |
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physician's independent medical judgment or any other matter under |
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this section. |
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(b) The person appointed as chief medical officer shall |
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report the person's appointment to the Texas Medical Board. |
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(c) The policies adopted under this section must include: |
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(1) policies relating to: |
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(A) credentialing; |
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(B) quality assurance; |
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(C) utilization review; |
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(D) peer review; 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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(d) The policies adopted under this section must be approved |
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by the chief medical officer. |
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(e) In the event of a conflict between a policy approved by |
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the chief medical officer and any other policy of the hospital, a |
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conflict management process shall be jointly developed and |
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implemented to resolve the conflict. |
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(f) For all matters relating to the practice of medicine, |
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each physician employed by a hospital under this subchapter shall |
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ultimately report to the chief medical officer. |
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(g) The chief medical officer shall immediately report to |
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the Texas Medical Board any action or event that the chief medical |
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officer reasonably and in good faith believes constitutes a |
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compromise of the independent medical judgment of a physician in |
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caring for a patient. |
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Sec. 311.064. CONSTRUCTION OF SUBCHAPTER. This subchapter |
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may not be construed as authorizing the governing body of a hospital |
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to supervise or control the practice of medicine as prohibited |
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under Subtitle B, Title 3, Occupations Code. |
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SECTION 2. 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. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 761 passed the Senate on |
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March 24, 2011, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 26, 2011, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 761 passed the House, with |
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amendment, on May 20, 2011, by the following vote: Yeas 146, |
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Nays 0, three present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |