Evolution and Refinement: Recent Texas Legislative Efforts on Medical Records, Corporate Practice, and Other Issues


In This Presentation:

Question 1:

• If a physician complies with HIPAA, he or she has also complied with all requirements of Texas’ medical privacy laws.
• True
• False

Question 2:

• Employee training requirements under Texas law are stricter than under HIPAA.
• True
• False

Question 3:

• Under Texas law, all hospitals can employ physicians because they are exempt from Texas’ corporate practice of medicine prohibition.
• True
• False

The Corporate Practice of Medicine and Physician Employment in Texas

The CPOM Doctrine
• Texas, like most states, recognizes a prohibition on general business entities practicing medicine
• Concern is that only natural persons can be licensed to practice medicine and corporate employers will unduly influence physician employees’ professional judgment and interfere in the physician-patient relationship

• The practical effect of it is the prohibition of the employment of physicians by non-licensed persons or entities
• Many states have modified it or else rarely enforce it
• Some states allow employment by general corporations as long as physician control maintained (e.g., MS, SC, LA)
• Others retain the prohibition but lack active enforcement (e.g. NV)
• At least one state has a stricter standard (CA)

Please see full presentation below for more information.


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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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