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A BILL TO BE ENTITLED
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AN ACT
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relating to the licensing and regulation of hospitals in this |
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state; increasing the amount of administrative penalties assessed |
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or imposed against certain hospitals. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 241.022(b), Health and Safety Code, is |
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amended to read as follows: |
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(b) The application must contain: |
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(1) the name and social security number of the sole |
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proprietor, if the applicant is a sole proprietor; |
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(2) the name and social security number of each |
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general partner who is an individual, if the applicant is a |
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partnership; |
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(3) the name and social security number of any |
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individual who has an ownership interest of more than five [25] |
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percent in the corporation, if the applicant is a corporation; and |
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(4) any other information that the department may |
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reasonably require. |
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SECTION 2. Subchapter B, Chapter 241, Health and Safety |
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Code, is amended by adding Section 241.0261 to read as follows: |
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Sec. 241.0261. INFORMATION SHARING WITH OFFICE OF INSPECTOR |
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GENERAL. (a) The department in accordance with department rules |
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may share with the office of inspector general established under |
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Subchapter C, Chapter 242, Human Resources Code, information |
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relating to an applicant for a hospital license under this chapter |
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or a hospital license holder. |
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(b) The executive commissioner of the Health and Human |
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Services Commission shall adopt the rules necessary to implement |
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this section. |
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SECTION 3. Section 241.051(a), Health and Safety Code, is |
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amended to read as follows: |
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(a) The department shall conduct an [may make any] |
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inspection of each hospital licensed under this chapter at least |
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once every three years, and the department may make any inspection, |
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survey, or investigation [that] it considers necessary. A |
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representative of the department may enter the premises of a |
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hospital at any reasonable time to make an inspection, a survey, or |
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an investigation to assure compliance with or prevent a violation |
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of this chapter, the rules adopted under this chapter, an order or |
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special order of the commissioner of health, a special license |
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provision, a court order granting injunctive relief, or other |
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enforcement procedures. The department shall maintain the |
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confidentiality of hospital records as applicable under state or |
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federal law. |
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SECTION 4. Subchapter C, Chapter 241, Health and Safety |
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Code, is amended by adding Section 241.0532 to read as follows: |
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Sec. 241.0532. EMERGENCY SUSPENSION. (a) The department |
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may issue an emergency order to suspend a license issued under this |
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chapter if the department has reasonable cause to believe that the |
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conduct of a license holder creates an immediate danger to the |
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public health and safety. An emergency suspension is effective |
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immediately without a hearing on notice to the license holder. |
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(b) On written request of the license holder, the department |
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shall conduct a hearing not earlier than the 10th day or later than |
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the 30th day after the date the hearing request is received to |
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determine if the emergency suspension is to be continued, modified, |
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or rescinded. |
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(c) The hearing and any appeal are governed by the |
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department's rules for a contested case hearing and Chapter 2001, |
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Government Code. |
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SECTION 5. Sections 241.059(b) and (c), Health and Safety |
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Code, are amended to read as follows: |
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(b) In determining the amount of the penalty, the |
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commissioner of health shall consider: |
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(1) the hospital's previous violations; |
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(2) the seriousness of the violation; |
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(3) any threat to the health, safety, or rights of the |
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hospital's patients; |
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(4) the demonstrated good faith of the hospital; [and] |
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(5) the effect of the penalty on the hospital's ability |
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to continue to provide services; and |
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(6) such other matters as justice may require. |
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(c) The penalty may not exceed $25,000 [$1,000] for each |
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violation, except that the penalty for a violation of Section |
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166.004 shall be $500. Each day of a continuing violation, other |
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than a violation of Section 166.004, may be considered a separate |
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violation. |
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SECTION 6. Chapter 241, Health and Safety Code, is amended |
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by adding Subchapter D to read as follows: |
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SUBCHAPTER D. TRUSTEES FOR HOSPITALS |
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Sec. 241.081. INVOLUNTARY APPOINTMENT. (a) The |
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department may request the attorney general to bring an action in |
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the name and on behalf of the state for the appointment of a trustee |
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to operate a hospital if: |
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(1) the hospital is operating without a license; |
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(2) the department has suspended or revoked the |
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hospital's license; |
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(3) license suspension or revocation procedures |
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against the hospital are pending and the department determines that |
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an imminent threat to the health and safety of the patients exists; |
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(4) the department determines that an emergency exists |
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that presents an immediate threat to the health and safety of the |
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patients; or |
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(5) the hospital is closing and arrangements for |
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relocation of the patients to other licensed institutions have not |
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been made before closure. |
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(b) A trustee appointed under Subsection (a)(5) may only |
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ensure an orderly and safe relocation of the hospital's patients as |
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quickly as possible. |
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(c) After a hearing, a court shall appoint a trustee to take |
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charge of a hospital if the court finds that involuntary |
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appointment of a trustee is necessary. |
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(d) If possible, the court shall appoint as trustee an |
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individual whose background includes institutional medical |
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administration. |
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(e) Venue for an action brought under this section is in |
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Travis County. |
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(f) A court having jurisdiction of a judicial review of the |
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matter may not order arbitration, whether on the motion of any party |
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or on the court's own motion, to resolve the legal issues of a |
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dispute involving the: |
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(1) appointment of a trustee under this section; or |
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(2) conduct with respect to which the appointment of a |
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trustee is sought. |
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Sec. 241.082. QUALIFICATIONS OF TRUSTEES. (a) A court may |
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appoint a person to serve as a trustee under this subchapter only if |
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the proposed trustee can demonstrate to the court that the proposed |
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trustee will be: |
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(1) present at the hospital as required to perform the |
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duties of a trustee; and |
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(2) available on call to appropriate staff at the |
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hospital, the department, and the court as necessary during the |
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time the trustee is not present at the hospital. |
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(b) A trustee shall report to the court in the event that the |
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trustee is unable to satisfy the requirements of Subsection (a)(1) |
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or (2). |
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(c) On the motion of any party or on the court's own motion, |
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the court may replace a trustee who is unable to satisfy the |
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requirements of Subsection (a)(1) or (2). |
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(d) A trustee's charges must separately identify personal |
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hours worked for which compensation is claimed. A trustee's claim |
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for personal compensation may include only compensation for |
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activities related to the trusteeship and performed in or on behalf |
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of the hospital. |
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Sec. 241.083. COMPENSATION; RELEASE OF FUNDS. (a) A |
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trustee appointed under this subchapter is entitled to reasonable |
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compensation as determined by the court. On the motion of any |
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party, the court shall review the reasonableness of the trustee's |
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compensation. The court shall reduce the amount if the court |
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determines that the compensation is not reasonable. |
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(b) The trustee may petition the court to order the release |
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to the trustee of any payment owed the trustee for care and services |
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provided to the patients if the payment has been withheld, |
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including a payment withheld by the Health and Human Services |
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Commission at the recommendation of the department. |
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(c) Withheld payments may include payments withheld by a |
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governmental agency or other entity during the appointment of the |
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trustee, such as payments: |
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(1) for Medicaid, Medicare, or insurance; |
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(2) by another third party; or |
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(3) for medical expenses borne by the patient. |
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SECTION 7. (a) The executive commissioner of the Health |
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and Human Services Commission shall adopt the rules required by |
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Chapter 241, Health and Safety Code, as amended by this Act, not |
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later than May 1, 2014. |
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(b) The changes in law made by this Act apply only to an |
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application submitted under Section 241.022, Health and Safety |
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Code, as amended by this Act, or the assessment or imposition of an |
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administrative penalty under Section 241.059, Health and Safety |
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Code, as amended by this Act, for a violation that occurs on or |
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after the effective date of this Act. An application submitted |
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under Section 241.022 before the effective date of this Act or the |
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assessment or imposition of an administrative penalty under Section |
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241.059 for a violation that occurs before the effective date of |
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this Act is governed by the law in effect on the date the |
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application was submitted or the violation occurred, and that law |
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is continued in effect for that purpose. |
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SECTION 8. 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 on the 91st day after the last day of the |
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legislative session. |