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.