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The Business of Health Care Report
78th Texas Legislature Health Care Report - August 2003


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Doug Hawthorne, President and CEO of Texas Health Resources I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD.

On today's program, we'll review our lawmakers' accomplishments on key health care issues during the 78th session of the Texas Legislature.

The Legislature wrapped up its work on June 2 after one of the most contentious sessions in history. Headlines were generated by fierce debates over the budget shortfall and a congressional redistricting battle that led to a much-publicized battle with House Democrats.

While several victories can be counted among the sweeping health care reforms passed by the Legislature - most notably the much-anticipated reforms to rein in frivolous health care lawsuits - significant cuts in health and human services funding cast a shadow over the session. Medicaid and the Children's Health Insurance Program were among the affected programs.

Still, the passage of medical liability tort reform was a major victory for health care consumers, physicians and hospitals. The reform measures include a $250,000 per defendant cap on noneconomic damages and a proposed constitutional amendment ratifying the legislature's authority to cap damage claims. This measure will go before Texas voters Sept. 13.

Lawmakers also passed a bill requiring health insurance companies to pay doctor and hospital claims in a timely fashion, boost Texas' vaccination rate and raise $1 billion over the next five years to pay for trauma care funding through fines for drivers who commit repeat violations.

Finally, the Legislature restructured the state's health insurance cooperatives to allow small businesses to purchase health insurance collectively, to enjoy volume discounts and to avoid state mandates requiring them to pay for coverage they don't need or can't afford.

All in all, the results for health care were a mixed bag in Austin this session. In a future show, we'll take at look at how our elected officials in Washington are progressing on key health care issues.

Source: Texas Health Resources Government and Community Affairs Legislative Summary.

For Texas Health Resources and its family of hospitals - Harris Methodist Hospitals, Presbyterian Healthcare System and Arlington Memorial Hospital - I'm CEO Doug Hawthorne with "The Business of Health Care Report" on NewsRadio 1080 KRLD.

Doug Hawthorne

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