HBA-SEB S.B. 871 76(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 871
By: Barrientos
Public Health
4/22/1999
Engrossed

BACKGROUND AND PURPOSE 

Currently, health care services are often provided to consumers through
managed care entities, which include networks of providers such as
physicians and podiatrists.  In 1997, the 75th Legislature passed a bill
authorizing physicians and podiatrists to co-own such networks, if they are
organized as a professional association.   However, the law does not permit
such co-ownership if the network is organized as a limited liability
company, a nonprofit corporation, or a partnership.  S.B. 871 authorizes
doctors of medicine and osteopathy licensed by the Texas State Board of
Medical Examiners and podiatrists licensed by the Texas State Board of
Podiatric Medical Examiners to form a partnership, limited liability
company, or nonprofit corporation.  

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 Section 6, Article 6132b, V.T.C.S. (Texas Uniform
Partnership Act), by adding Paragraph (4), to authorize doctors of medicine
and osteopathy licensed by the Texas State Board of Medical Examiners
(TSBME) and podiatrists licensed by the Texas State Board of Podiatric
Medical Examiners (TSBPME) to form a partnership to perform professional
services that fall within the scope of their respective practices.
Establishes that each partner's authority is limited by the scope of the
partner's practice.  Prohibits a partner from exercising control over the
clinical authority granted by another partner's license through a specific
arrangement that would grant control over treatment decisions made by
another partner. Provides that TSBME and TSBPME retain their regulatory
authority over the partners' licenses. 

SECTION 2. Amends Article 11.01, Article 1528n, V.T.C.S. (Texas Limited
Liability Company Act), by adding Section C, to authorize licensed doctors
of medicine and osteopathy and podiatrists to organize a professional
limited liability company to perform professional services that fall within
the scope of their respective practices, notwithstanding any other
provision of this Act.  Provides that the authority of each of the
practitioners is limited by the scope of the practitioner's practice.
Prohibits a practitioner from exercising control over the clinical
authority granted by another practitioner's license through a specific
arrangement that would grant control over treatment decisions made by
another practitioner.  Establishes that TSBME and TSBPME retain their
regulatory authority over the practitioners' licenses.   

SECTION 3.  Amends Article 2.01, Article 1396-2.01, V.T.C.S. (Texas
Non-Profit Corporation Act), by adding Section C, to authorize licensed
doctors of medicine and osteopathy and podiatrists to form a nonprofit
corporation to perform professional services that fall within the scope of
their respective practices and that is organized to carry out research,
instruction, medical care, or other services that are useful to the
individual and beneficial to the community, notwithstanding the other
provisions of this Act or other law.  Provides that the authority of the
practitioners is limited by the scope of the practitioner's practice.
Prohibits a practitioner from exercising control over the clinical
authority granted by another practitioner's license through a specific
arrangement.  Provides that TSBME and TSBPE retain their regulatory
authority over the practitioner's licenses.  

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