H.B. No. 1247
 
 
 
 
AN ACT
  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.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1247 was passed by the House on April
  25, 2013, by the following vote:  Yeas 136, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 1247 was passed by the Senate on May
  15, 2013, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor