HBA-NRS H.B. 1913 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 1913 By: Capelo Insurance 7/19/2001 Enrolled BACKGROUND AND PURPOSE State law requires a preferred provider organization (PPO) or health maintenance organization (HMO) to provide due process to a provider through the use of an advisory panel of physicians selected by the PPO or HMO before the provider is deselected from the PPO's or HMO's health plan. Since the panel's decision is of an advisory nature only, a provider who brings a case before the panel may still be deselected from the health plan without good cause. Providers may seek legal redress if they feel their deselection from a plan is unwarranted, but may not be able to pursue the action due to time constraints, cost concerns, and the improbability of prevailing in the suit. House Bill 1913 strengthens the peer review process by requiring the process to meet certain federal guidelines regarding good faith professional review activities if a contributing cause of the termination of a contract is based on utilization review, quality review, or any action reported to the National Practitioner Data Bank and authorizing aggrieved parties to bring an action for failure to follow procedures. 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 1913 amends the Insurance Code to provide that if a contributing cause of the termination of a provider contract by a preferred provider organization (PPO) or health maintenance organization (HMO) is based on quality review, including quality issues involving utilization patterns or any action reported to the National Practitioner Data Bank, the review mechanism must be a peer review process that meets federal guidelines for good faith professional review activities and must be conducted before the PPO or HMO files any complaint with the Texas State Board of Medical Examiners (board). The bill provides that a PPO or HMO determination that is contrary to any recommendation of an advisory review panel must be for good cause shown. In cases in which there is imminent harm to a patient's health or an action by a state licensing board or other government agency that effectively impairs a physician's, practitioner's, or provider's ability to practice medicine, dentistry, or another profession, or in a case of fraud or malfeasance, the bill authorizes the PPO or HMO to immediately suspend the physician or practitioner if the physician's or practitioner's facility admission privileges have been revoked or suspended for longer than 30 days because of quality of care issues or the physician or provider is subject to an order of the board that revokes, suspends, or restricts the physician's or provider's license, if the review process is initiated simultaneously with the termination or suspension of a contract. EFFECTIVE DATE Vetoed.