Few issues are as sacrosanct to Texas physicians as the
prohibition on the corporate practice of medicine. Over the years,
the doctrine has been tarnished. Questions have been raised about
whether legal methods to employ physicians, such as 501(a)
entities, undermined physicians' ability to make independent
medical decisions and to be fiduciaries to their patients. Texas'
case law has upheld a prohibition against corporations or other lay
entities from directly employing physicians.
TMA vigorously opposes any erosion of the corporate practice
prohibition. In this session, as in 2005, the association blocked
efforts to allow some types of hospitals, such as hospital
districts and rural facilities, to employ physicians. About half a
dozen bills were filed that would have allowed a hospital district
to employ doctors. All of the problematic bills were "local bills"
- bills affecting only a certain county or region. TMA worked
successfully with most of the bill authors to revise the language
to address medicine's concerns. All the corporate practice bills
were amended or died.
The ability of hospitals to employ physicians proved appealing
to several lawmakers. Local hospitals encouraged legislators to
help their communities improve health care availability by allowing
them to hire physicians directly. The authors of some of the bills
would not accept TMA-supported amendments because they, and the
rural hospital administrators within their districts, argued
(erroneously) that employing physicians was the only way to
successfully attract and retain physicians in underserved
areas.
TMA expects this issue to reemerge next session. An interim
legislative study on the topic also is likely.
Corporate Practice of Medicine TMA Staff Team:
Legislative: Dan Finch
Legal: Rocky Wilcox, C.J. Francisco, and Lee Spangler
Policy: Michael Reed and Helen Kent Davis
Overview
|
Managed Care/Insurance Reform
|
Scope of Practice
|
Retail Health Clinics
|
Responsible Ownership
|
Health Care Funding
|
Medicaid, CHIP, and the
Uninsured
|
Public Health
|
Border Health
|
Mental Health
|
Emergency Medical Services and
Trauma Care
|
Rural Health
|
Medical Science and Quality
|
Physician Workforce, Licensure,
and Discipline
|
Health Information Technology
|
Prescription Drugs
|
Long-Term Care
|
Workers' Compensation
|
Abortion
|
Franchise Tax Reform
Last Updated On
July 23, 2010
Originally Published On
March 23, 2010