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.