HBA-NMO H.B. 1572 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1572
By: Turner, Sylvester
Public Health
3/14/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, managed care entities often consist of networks of health care
providers.  The 75th Texas Legislature enacted legislation authorizing
physicians and podiatrists to co-own such a network if organized as a
professional association.  However, the law does not permit such
co-ownership of a network that is organized as a limited liability company,
a non-profit corporation, or a partnership. H.B. 1572 authorizes physicians
and podiatrists to organize, manage, and co-own limited liability
companies, non-profit corporations, and partnerships for the purpose of
providing professional health care services. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subsection A, Article 11.01, Article 1528n, V.T.C.S.
(Texas Limited Liability Company Act), to authorize doctors of medicine and
osteopathy licensed by the Texas State Board of Medical Examiners (board of
medical examiners) and podiatrists licensed by the Texas State Board of
Podiatric Medical Examiners (board of podiatric medical examiners) to
organize a professional limited liability company that is jointly owned by
those practitioners to perform a professional service that falls within the
scope of their practice.  Provides certain limitations to the authority of
each practitioner.  Provides that the board of medical examiners and the
board of podiatric medical examiners continue to exercise regulatory
authority over their respective licenses. Makes conforming changes. 

SECTION 2.  Amends Article 2.01, Article 1396-2.01, V.T.C.S. (Texas
Non-Profit Corporation Act), by amending Subsection B and adding
Subsections C and D, as follows: 

B.  Makes conforming changes.

C.  Authorizes doctors of medicine and osteopathy licensed by the board of
medical examiners and podiatrists licensed by the board of podiatric
medical examiners to organize a non-profit corporation that is jointly
owned, managed, and controlled by those practitioners to perform certain
professional services that falls within their scope of practice. 

D.  Provides certain limitations to the authority of each practitioner who
is a joint owner of a non-profit corporation.  Provides that board of
medical examiners and the board of podiatric medical examiners continue to
exercise regulatory authority over their respective licenses.  
  
SECTION 3.  Amends Section 2.02, Article 6132b-2.02, V.T.C.S. (Texas
Revised Partnership Act), by adding Subsection (e), to authorize doctors of
medicine and osteopathy licensed by the board of medical examiners and
podiatrists licensed by the board of podiatric medical examiners to create
a partnership that is jointly owned by those practitioners to perform a
professional service that falls within the scope of their practice.
Provides certain limitations to the authority of each practitioner.
Provides that the board of medical examiners and the board of podiatric
medical examiners continue  to exercise regulatory authority over their
respective licenses.  

SECTION 4.Emergency clause.
  Effective date: upon passage.