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


Office of House Bill AnalysisC.S.H.B. 1340
By: Brimer
Civil Practices
4/29/2001
Committee Report (Substituted)



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. C.S.H.B. 1340 provides that a
hospital licensed under the Texas Hospital Licensing Law, that is not a
nonprofit hospital, a nonprofit hospital, or hospital system, that provides
charity care and community benefits in a combined amount equal to 10
percent or more of its net patient revenue and at least 50 percent of the
charity care required by the county in which the hospital or system is
protected under limited liability. The bill also sets forth certification
of a hospital or system. 

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

C.S.H.B. 1340 amends the Health and Safety Code to provide that a nonprofit
hospital, hospital system, and a hospital licensed under the Texas Hospital
Licensing Law that is not a nonprofit hospital must provide charity care
and community benefits in a combined amount equal to at least 10 percent of
the net patient revenue of the hospital or hospital system during the
preceding fiscal year of the hospital or system and at least 50 percent of
the charity care required by the county in which the hospital is located to
be eligible for certification.  

The bill provides that all of these hospitals and a hospital system must
submit a report based on its most recent completed and audited prior fiscal
year to the Texas Department of Health not later than April 30 of each year
after the hospital's or system's fiscal year ends stating that the hospital
or system is eligible for certification. The bill provides that the
information in the report must be verified against the hospital's or
system's annual report of community benefits plan. The bill provides that
certification issued to a hospital or system takes effect on May 31 of that
year and expires on the anniversary of that date.  

The bill provides that the liability of a hospital or hospital system for a
cause of action that accrues during the period that the hospital or system
is certified is subject to the limitations specified by the Medical
Liability and Insurance Improvement Act of Texas.  

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1340 modifies the original bill by removing financial limitations
set as a result of a civil action against a  nonprofit hospital, hospital
system, or hospital licensed under the Texas Hospital Licensing Law, that
is not a nonprofit hospital for injury to or destruction of property
provided that such a hospital is  certified by the Texas Department of
Health. The substitute removes references to a for-profit  hospital in
relation to the certification of a for-profit hospital. The substitute
provides that certification expires on the anniversary of the date
certified. The substitute modifies limited liability provisions for a
nonprofit hospital, hospital system, or hospital licensed under the Texas
Hospital Licensing Law that is not a nonprofit hospital, to provide that
such hospitals are subject to limitations specified by the Medical
Liability and Insurance Improvement Act of Texas. The bill modifies the
effective date.