HBA-MSH H.B. 1340 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1340
By: Brimer
Civil Practices
3/27/2001
Introduced



BACKGROUND AND PURPOSE 

Current law limits the liability of a nonhospital charitable organization
regarding a civil action  for certain damages. It has been suggested that
similar limited liability should be extended to a nonprofit hospital,
hospital system, or for-profit hospital. House Bill 1340 provides that a
nonprofit hospital, hospital system, or for-profit hospital that provides
charity care and community benefits in a combined amount equal to 10
percent or more of its net patient revenue is protected under limited
liability.  

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. 

ANALYSIS

House Bill 1340 amends the Civil Practice and Remedies Code to provide that
in a civil action brought against a nonprofit hospital, hospital system, or
for-profit hospital for damages based on an act or omission by such
hospitals the liability of such an organization is limited to money damages
in a maximum amount of $100,000 for each person and $300,000 for each
single occurrence of bodily injury or death and $100,000 for each single
occurrence for injury to or destruction of property provided such a
hospital is certified by the Texas Department of Health (TDH). 

The bill sets forth minimum community benefits and charity care
requirements for nonprofit hospitals, hospital systems, and for-profit
hospitals, including annual certification of such entities by the Bureau of
State Health Data and Policy Analysis and reporting requirements. 

The bill specifies that provisions relating to limited liability protection
for certain hospitals do not expand protections to any other institution,
entity, or provider, nor do such provisions limit, diminish, modify, or
alter the protections provided to a nonprofit hospital, hospital system or
for-profit hospital. 

EFFECTIVE DATE

The Act takes effect on the 91st day after adjournment.