HBA-TBM H.B. 606 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 606
By: Smithee
Insurance
3/2/2001
Committee Report (Amended)



BACKGROUND AND PURPOSE 

A recent development in managed care is the use of hospitalists.
Hospitalists are physicians who practice primarily in the hospital setting
and assume primary responsibility for the care of other physicians'
patients during hospitalization.  A hospitalist arrangement, if entered
into voluntarily by a patient and a physician, may increase efficiency,
reduce unnecessary services, and improve communication among the
hospitalized patient, the attending physician, and the hospital staff.
Mandatory hospitalist arrangements, however, may compromise the quality and
continuity of care, decrease patient satisfaction, and erode an
office-based physician's inpatient clinical skills.  House Bill 606
prohibits an insurer or health maintenance organization from mandating a
hospitalist program. 

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 606 amends the Insurance Code and the Texas Health Maintenance
Organization Act to prohibit a contract between an insurer or health
maintenance organization and a physician from requiring a physician to use
a hospitalist for a hospitalized patient.  

EFFECTIVE DATE

September 1, 2001.

EXPLANATION OF AMENDMENTS

Committee Amendment No. 1 provides that the prohibition that prevents a
contract from requiring a physician to use a hospitalist for a hospitalized
patient does not apply to a nonprofit health corporation that holds a
certificate of authority issued by the Texas Department of Insurance.