Current through Reg. 49, No. 38; September 20, 2024
A health organization seeking certification under §
162.001(b) of the Act shall submit an application to the board, to the
attention of the Non-Profits department, on a form approved by the board. The
application shall include:
(1) Initial
Identification Statement. A statement signed and verified by the chief
executive officer:
(A) indicating the name and
mailing address of the health organization;
(B) indicating the names and mailing
addresses of all members or that there are no members;
(C) indicating the names and mailing
addresses of all officers; and
(D)
indicating the names and mailing addresses of all directors.
(2) Initial Document Statement. A
statement signed and verified by the chief executive officer attaching a copy
of the current certificate of incorporation of the health organization and
attaching a copy of the current by-laws of the health organization including
provisions that:
(A) the health organization
is organized for any or all of the following purposes:
(i) the carrying out of scientific research
and research projects in the public interest in the fields of medical sciences,
medical economics, public health, sociology, or related areas;
(ii) the supporting of medical education in
medical schools through grants and scholarships;
(iii) the improving and developing of the
abilities of individuals and institutions studying, teaching, and practicing
medicine;
(iv) the delivery of
health care to the public;
(v) the
engaging in the instruction of the general public in the area of medical
science, public health, and hygiene and related instruction useful to the
individual and beneficial to the community.
(B) the physician(s) organizing and
incorporating the health organization shall select the initial board of
directors consistent with the mission, goals, and purposes of the health
organization;
(C) the by-laws of
the health organization shall be interpreted in a manner that reserves to the
health organization through its retained physicians the sole authority to
engage in the practice of medicine and reserves to the health organization
through its board of directors the sole authority to direct the medical,
professional, and ethical aspects of the practice of medicine;
(D) each director is required to immediately
report to the board any action or event which such director reasonably and in
good faith believes constitutes a violation or attempted violation of the Act
or the Rules;
(E) each director is
required to individually disclose to the member(s), if any, and to the board of
directors (at the times of nomination and appointment) and to the board (at the
times of initial application and biennial reports) the identity of each
financial relationship known to such director, if any, which such director has
with any member, any other director, any supplier of the health organization or
any affiliate of any member, other director, or supplier of the health
organization, and to provide a concise explanation of the nature of each such
financial relationship; and
(F) the
termination of the retention of any physician to provide medical services on
behalf of the health organization during such physician's term of retention may
be accomplished only by the board of directors or its physician designee(s) and
such termination shall be subject to due process procedures adopted by the
board of directors or its physician designee(s) or provided by the retention
agreement between the health organization and the subject physician.
(3) Initial Director Statements.
Statements signed and verified by each current director indicating that:
(A) such director is licensed by the
board;
(B) such director is
actively engaged in the practice of medicine and has no restrictions on his or
her Texas medical license;
(C) such
director will, as a director, exercise independent judgment in all matters and,
specifically, matters relating to credentialing, quality assurance, utilization
review, peer review, and the practice of medicine;
(D) such director will, as a director,
exercise best efforts to cause the health organization to comply with all
relevant provisions of the Act and the Rules;
(E) such director will, as a director,
immediately report to the board any action or event which such director
reasonably and in good faith believes constitutes a violation or attempted
violation of the Act or the Rules; and
(F) such director has disclosed within such
director's statement the identity of all of such director's financial
relationships, if any, of the type described in paragraph (2)(E) of this
subsection and provided a concise explanation of the nature of each such
financial relationship within such director's statement.
(4) Initial Compliance Statement. A statement
signed and verified by the chief executive officer indicating that the health
organization is in compliance with the requirements for certification and
continued certification as required by the provisions of the Act and the
Rules.
(5) Initial Fee Payment. A
fee in the amount and form specified by §
175.1
of this title (relating to Application Fees).
