HBA-CCH C.S.H.B. 1202 77(R)    BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 1202
By: Brimer
Business & Industry
3/27/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Under current law,  the Texas Workers' Compensation Commission (TWCC)
requires an employee who sustains a compensable injury to receive medical
treatment from a doctor chosen from a list of doctors approved by TWCC.
Currently, each doctor licensed in this state on January 1, 1993, is on the
list, unless subsequently deleted for any conduct TWCC considers relevant.
C.S.H.B. 1202 establishes criteria for doctors to be eligible to be on the
list of approved doctors and requires TWCC to employ a medical advisor to
appoint a medical review panel to assist in recommending sanctions for
doctors on the list.   

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Workers' Compensation
Commission in SECTION 1 (Sections 408.023 and 408.0235, Labor Code) and in
SECTION 4 of this bill. 

ANALYSIS

C.S.H.B. 1202 amends the Labor Code relating to the medical review of
health care provided under the workers' compensation insurance system.  The
bill provides that each doctor licensed in this state is eligible to be on
the Texas Worker's Compensation Commission's (TWCC) list of approved
doctors if the doctor registers with TWCC in the manner presented by
commission rules and complies with the requirements adopted by TWCC.  The
bill requires TWCC to develop a list of doctors who are approved to provide
workers' compensation services and sets forth provisions  authorizing
out-of-state doctors to perform these services.  TWCC is required, by rule,
to establish reasonable requirements for doctors who provide services as
treating or designated doctors, perform medical peer review, or perform
utilization review of medical benefits. The bill requires TWCC to issue to
an approved doctor a renewable certificate of registration that is valid
for four years.  Each doctor, including a doctor who performs required
medical examinations, must hold a certificate of registration and be on the
list of approved doctors to perform workers' compensation services or to
receive payment for those services (Sec. 408.023).   

TWCC by rule is required to establish criteria for removing a doctor from
the list of approved doctors, for imposing sanctions for violations, and
for authorizing reduced utilization review controls.  The bill modifies the
criteria for removing a doctor from the list.  The bill also requires TWCC,
by rule, to establish procedures under which a doctor may apply for
reinstatement to the list of approved doctors, or for restoration of doctor
practice privileges removed by TWCC based on sanctions.  The bill specifies
conditions for which the executive director of TWCC is authorized to impose
sanctions on a health care provider, an insurance carrier, or a utilization
review agent (Sec. 408.0235). 

TWCC is authorized to contract with a health care provider to develop,
maintain, or review medical policies or fee guidelines or to review
compliance with these policies or fee guidelines.  The bill authorizes TWCC
to contract with a health care provider professional review organization or
other entity for medical consulting services.  The bill requires TWCC to
establish standards for these contracts (Sec. 413.051). 


 The bill requires TWCC to employ or contract with a doctor who serves as a
medical advisor (advisor) and specifies the  advisor's duties (Sec.
413.0511).  The bill authorizes the advisor to establish an independent
medical quality review panel of health care providers as an advisory body
to assist the advisor in providing recommendations for sanctions on health
care providers and utilization review agents and for modifications to the
list of approved doctors.  The bill requires the Texas State Board of
Medical Examiners and the Texas Board of Chiropractic Examiners to develop
lists of physicians and chiropractors licensed by those agencies who have
demonstrated experience in workers' compensation or utilization review from
which the advisor shall appoint the members of the medical quality review
panel.  Except for harm resulting from gross negligence, malice, or
recklessness, a person on the medical quality review panel is not liable
for an act or omission committed in the course and scope of the person's
service as a member of the panel.  The actions of a person serving on the
medical quality review panel do not constitute utilization review  (Sec.
413.0512). 

The bill prohibits information that is confidential under current law from
being disclosed except in a criminal proceeding, in a hearing conducted by
or on behalf of TWCC, in a hearing conducted by another licensing or
regulatory authority, or on a finding of good cause in an administrative or
judicial proceeding involving a disciplinary action or the enforcement of
the provisions of this bill (Sec. 413.0513). 

The bill requires TWCC to adopt rules as required  by this Act no later
than December 1, 2001.  A person is not required to hold a certificate of
registration to perform medical services before March 1, 2002 (SECTION 4). 

EFFECTIVE DATE

September 1, 2001.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 1202 modifies the original by clarifying that the Texas Board of
Chiropractic Examiners, instead of the Texas State Board of Podiatric
Medical Examiners, is required to assist in developing lists of licensed
physicians and chiropractors who have demonstrated experience in workers'
compensation or utilization review.