Bill Text: TX SB424 | 2015-2016 | 84th Legislature | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the licensing and regulation of hospitals in this state; increasing the amount of administrative penalties assessed or imposed against certain hospitals; authorizing the imposition of a fee.

Spectrum: Moderate Partisan Bill (Republican 4-1)

Status: (Engrossed - Dead) 2015-05-26 - Point of order sustained [SB424 Detail]

Download: Texas-2015-SB424-Introduced.html

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84R3455 MEW-D
By: Schwertner S.B. No. 424

A BILL TO BE ENTITLED
AN ACT
relating to the licensing and regulation of hospitals in this
state; increasing the amount of administrative penalties assessed
or imposed against certain hospitals.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 241.022(b) and (d), Health and Safety
Code, are amended to read as follows:
(b) The application must contain:
(1) the name and social security number of the sole
proprietor, if the applicant is a sole proprietor;
(2) the name and social security number of each
general partner who is an individual, if the applicant is a
partnership;
(3) the name and social security number of any
individual who has an ownership interest of more than five [25]
percent in the corporation, if the applicant is a corporation; and
(4) any other information that the department may
reasonably require.
(d) The application must be accompanied by:
(1) a copy of the hospital's current patient transfer
policy;
(2) a nonrefundable license fee;
(3) copies of the hospital's patient transfer
agreements, unless the filing of copies has been waived by the
hospital licensing director in accordance with the rules adopted
under this chapter; [and]
(4) a copy of the most recent annual fire safety
inspection report from the fire marshal in whose jurisdiction the
hospital is located; and
(5) a copy of the surety bond required under Section
241.0221.
SECTION 2. Subchapter B, Chapter 241, Health and Safety
Code, is amended by adding Section 241.0221 to read as follows:
Sec. 241.0221. SURETY BOND FOR LICENSE. (a) An applicant
for issuance of, or a license holder applying for renewal of, a
license issued under this chapter must provide the department with
a surety bond in an amount sufficient to cover the costs associated
with:
(1) the storage of medical records for 10 years if the
hospital is closed; and
(2) any court-ordered appointment of a trustee to
operate the hospital as provided under Section 241.081, including
the payment of reasonable compensation to the trustee under Section
241.083.
(b) This section does not apply to a hospital that is owned
or directly operated by a governmental entity.
SECTION 3. Subchapter B, Chapter 241, Health and Safety
Code, is amended by adding Section 241.0261 to read as follows:
Sec. 241.0261. INFORMATION SHARING WITH OFFICE OF INSPECTOR
GENERAL. (a) The department in accordance with department rules
may share with the office of inspector general of the Health and
Human Services Commission information relating to an applicant for
a hospital license under this chapter or a hospital license holder.
(b) The executive commissioner of the Health and Human
Services Commission shall adopt the rules necessary to implement
this section.
SECTION 4. Section 241.051(a), Health and Safety Code, is
amended to read as follows:
(a) The department shall conduct an [may make any]
inspection of each hospital licensed under this chapter at least
once every three years, and the department may make any inspection,
survey, or investigation [that] it considers necessary. A
representative of the department may enter the premises of a
hospital at any reasonable time to make an inspection, a survey, or
an investigation to assure compliance with or prevent a violation
of this chapter, the rules adopted under this chapter, an order or
special order of the commissioner of health, a special license
provision, a court order granting injunctive relief, or other
enforcement procedures. The department shall maintain the
confidentiality of hospital records as applicable under state or
federal law.
SECTION 5. Subchapter C, Chapter 241, Health and Safety
Code, is amended by adding Section 241.0532 to read as follows:
Sec. 241.0532. EMERGENCY SUSPENSION. (a) The department
may issue an emergency order to suspend a license issued under this
chapter if the department has reasonable cause to believe that the
conduct of a license holder creates an immediate danger to the
public health and safety. An emergency suspension is effective
immediately without a hearing on notice to the license holder.
(b) On written request of the license holder to the
department for a hearing, the department shall refer the matter to
the State Office of Administrative Hearings. An administrative law
judge of the office shall conduct a hearing not earlier than the
10th day or later than the 30th day after the date the hearing
request is received by the department to determine if the emergency
suspension is to be continued, modified, or rescinded.
(c) The hearing and any appeal are governed by the
department's rules for a contested case hearing and Chapter 2001,
Government Code.
SECTION 6. Sections 241.059(b) and (c), Health and Safety
Code, are amended to read as follows:
(b) In determining the amount of the penalty, the
commissioner of health shall consider:
(1) the hospital's previous violations;
(2) the seriousness of the violation;
(3) any threat to the health, safety, or rights of the
hospital's patients;
(4) the demonstrated good faith of the hospital; [and]
(5) the effect of the penalty on the hospital's ability
to continue to provide services; and
(6) such other matters as justice may require.
(c) The penalty may not exceed $25,000 [$1,000] for each
violation, except that the penalty for a violation of Section
166.004 shall be $500. Each day of a continuing violation, other
than a violation of Section 166.004, may be considered a separate
violation.
SECTION 7. Chapter 241, Health and Safety Code, is amended
by adding Subchapter D to read as follows:
SUBCHAPTER D. TRUSTEES FOR HOSPITALS
Sec. 241.081. INVOLUNTARY APPOINTMENT. (a) The department
may request the attorney general to bring an action in the name and
on behalf of the state for the appointment of a trustee to operate a
hospital if:
(1) the hospital is operating without a license;
(2) the department has suspended or revoked the
hospital's license;
(3) license suspension or revocation procedures
against the hospital are pending and the department determines that
an imminent threat to the health and safety of the patients exists;
(4) the department determines that an emergency exists
that presents an immediate threat to the health and safety of the
patients; or
(5) the hospital is closing and arrangements for
relocation of the patients to other licensed institutions have not
been made before closure.
(b) A trustee appointed under Subsection (a)(5) may only
ensure an orderly and safe relocation of the hospital's patients as
quickly as possible.
(c) After a hearing, a court shall appoint a trustee to take
charge of a hospital if the court finds that involuntary
appointment of a trustee is necessary.
(d) If possible, the court shall appoint as trustee an
individual whose background includes institutional medical
administration.
(e) Venue for an action brought under this section is in
Travis County.
(f) A court having jurisdiction of a judicial review of the
matter may not order arbitration, whether on the motion of any party
or on the court's own motion, to resolve the legal issues of a
dispute involving the:
(1) appointment of a trustee under this section; or
(2) conduct with respect to which the appointment of a
trustee is sought.
Sec. 241.082. QUALIFICATIONS OF TRUSTEES. (a) A court may
appoint a person to serve as a trustee under this subchapter only if
the proposed trustee can demonstrate to the court that the proposed
trustee will be:
(1) present at the hospital as required to perform the
duties of a trustee; and
(2) available on call to appropriate staff at the
hospital, the department, and the court as necessary during the
time the trustee is not present at the hospital.
(b) A trustee shall report to the court in the event that the
trustee is unable to satisfy the requirements of Subsection (a)(1)
or (2).
(c) On the motion of any party or on the court's own motion,
the court may replace a trustee who is unable to satisfy the
requirements of Subsection (a)(1) or (2).
(d) A trustee's charges must separately identify personal
hours worked for which compensation is claimed. A trustee's claim
for personal compensation may include only compensation for
activities related to the trusteeship and performed in or on behalf
of the hospital.
Sec. 241.083. COMPENSATION; RELEASE OF FUNDS. (a) A
trustee appointed under this subchapter is entitled to reasonable
compensation as determined by the court. On the motion of any
party, the court shall review the reasonableness of the trustee's
compensation. The court shall reduce the amount if the court
determines that the compensation is not reasonable.
(b) The trustee may petition the court to order the release
to the trustee of any payment owed the trustee for care and services
provided to the patients if the payment has been withheld,
including a payment withheld by the Health and Human Services
Commission at the recommendation of the department.
(c) Withheld payments may include payments withheld by a
governmental agency or other entity during the appointment of the
trustee, such as payments:
(1) for Medicaid, Medicare, or insurance;
(2) by another third party; or
(3) for medical expenses borne by the patient.
SECTION 8. (a) The executive commissioner of the Health and
Human Services Commission shall adopt the rules required by Chapter
241, Health and Safety Code, as amended by this Act, not later than
May 1, 2016.
(b) The changes in law made by this Act apply only to an
application submitted under Section 241.022, Health and Safety
Code, as amended by this Act, or the assessment or imposition of an
administrative penalty under Section 241.059, Health and Safety
Code, as amended by this Act, for a violation that occurs on or
after the effective date of this Act. An application submitted
under Section 241.022 before the effective date of this Act or the
assessment or imposition of an administrative penalty under Section
241.059 for a violation that occurs before the effective date of
this Act is governed by the law in effect on the date the
application was submitted or the violation occurred, and that law
is continued in effect for that purpose.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.