S.B. No. 1236
 
 
 
 
AN ACT
  relating to authority of the Hunt Memorial Hospital District to
  appoint, contract for, or employ physicians.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 1044, Special District
  Local Laws Code, is amended by adding Section 1044.0605 to read as
  follows:
         Sec. 1044.0605.  EMPLOYMENT OF PHYSICIANS. (a)  The board
  may appoint, contract for, or employ physicians as the board
  considers necessary to provide medical services at a health care
  facility owned or operated by the district as provided by this
  section.  The board may retain all or part of the professional
  income generated by a physician employed by the district for those
  medical services if the board satisfies the requirements of this
  section.
         (b)  This section may not be construed as authorizing the
  board to supervise or control the practice of medicine, as
  prohibited by Subtitle B, Title 3, Occupations Code.
         (c)  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 at
  health care facilities owned or operated by the district.
         (d)  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.
         (e)  The policies adopted under this section must be approved
  by the medical staff of the district.  The chief medical officer and
  the board shall jointly develop and implement a conflict management
  policy to resolve any conflict between a policy approved by the
  medical staff under this section and any other district policy.
         (f)  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.
         (g)  The chief medical officer shall notify the Texas Medical
  Board that the district is employing physicians under this section
  and that the chief medical officer is the district'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.
         (h)  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.
         (i)  A physician employed by the district shall retain
  independent medical judgment in providing care to patients at a
  health care facility owned or operated by the district and may not
  be disciplined for reasonably advocating for patient care.
         (j)  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.
         (k)  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,
  and any other applicable law.
         SECTION 2.  This Act takes effect September 1, 2019.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1236 passed the Senate on
  May 3, 2019, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1236 passed the House on
  May 14, 2019, by the following vote:  Yeas 140, Nays 1, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor