Protections of Non-employment Physicians Extended to 501 (a)s: The Texas Medical Association will work legislatively to ensure that institutions utilizing non-profit health corporations (NPHCs), formerly known as 501(a) organizations, be required to observe the following rules, as passed by the 82nd Texas Legislature in 2011, for institutions that employ physicians: (1) place the responsibility for all clinical matters – bylaws, credentialing, utilization review, and peer review – under the medical staff; (2) guarantee physicians’ independent medical judgment; (3) state that all physicians – employed, part of a NPHC 501(a), or independent – are subject to the same rights and responsibilities; (4) allow physicians in NPHCs 501(a) entities to participate in the selection of their liability insurance and have the right to consent to settle in a liability action; and (5) require the medical staff to designate a chief medical officer (CMO) who must be approved by the NPHC hospital board. The CMO has the duty to report to the Texas Medical Board (TMB) that the hospital is utilizing physicians in NPHCs 501(a) entities and that the CMO is the contact with TMB. The CMO has a duty to report instances of interference to TMB (Amended Res. 404-A-12).
Last Updated On
October 07, 2016