The Texas legislature’s recent activity on a number of fronts may have positive implications for the development of ACOs in the Lone Star state.

In May Texas Gov. Rick Perry (R) signed into law a bill (S.B. 894) that permits various categories of rural hospitals to employ physicians directly, which sources tell ABN could make it easier to set up ACOs throughout the heavily rural state.

Moreover, although Texas remains one of only a handful of states that continue to impose a general ban on the corporate practice of medicine, state lawmakers recently passed bills carving out exceptions for some urban hospitals on a case-by case basis. Also, lawmakers began a special session in June and are debating an omnibus health bill (S.B. 7) that, among other things, would set the rules to allow ACO-like entities called “health care collaboratives” to operate in Texas.

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