Untitled Texas Attorney General Opinion ( 1971 )

Ronotable George N. Rodriguez,Jr. Opinion No. M-912
County Attorney
El Paso county Re: ~Queetionsrelating to
Room 201, City-CountyBuilding authority to contractby
El P&so, Texas 79901 El Paso County Hospital
with.privatehospital for
latter's patient5 at a
Dear Mr. 'Rodriguez: discounted fee rate.
By your recent letter you have asked our opinion on the
following questions:
"Does the El Paso County Rospital District and
specificallyR. E. Thomason General Hospital, have
authority to contract with a privately owrledhospital
situated within the Hospital District whereby labora-
tory tests pertaining to patients of the privately
owned hospital are performed by R. E. Thomason
General Hospital at a‘disdountedfee rate?
"Does the El Paso County Hospital District and
specificallyR. E. Thomson General Hospital, have
authority~to contractwith private physicians in El
Paso County, TeXas, whereby laboratorytests pertain-
ing to patients of the private physicians are performed
by R. E. Thomason General Hospital at a discounted fee
basis?"
you further relate the following facts: That recently
R. E. Thomson General Hospital acquired additional laboratory
equipment;that laboratorytesting with this equipment has been
furnishedby R. E. Thomason Hospital for a privately owned
hospital within the Hospital District; and that "during the
period that this agreemnt has been in effect.no p.atientat
R. B. Thomason General Hospital has been denied or deprived
utilizationof the Dew equipment. In fact this new equipment
has a capacity for a twofold increase in the number of tests
presently conducted for both R. E. Thomason General Bospital
and ProvidenceMemorial Hospital." You further state that the
equipment is operated by personnel employed by R. E. Thomason
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nonorable George N. Rodriguez, Jr., page 2 (M-912)
General Hospital, including a pathologistwho $8 a licensed
medical dootor, on a monthly salary basis.
Our opinion is that the El Paso County Bospital Dis-
trict, and the R. E. Thomason General Hospital (hereinafter
referred to as the hospital) and its lriadical
staff, my under
lawful contracts perform the laboratorytests under consfdera-
tlon but the existing terms of employment between the hospital
and its medical doctor pathologist,with feer being charged
‘for the.doctor’s services by the hospital, appear'to violate
the Medical Practice Aat.
A hospital district has a constitutionalobligation
to care for the needy which, according to you. recited facts,
has and is being met. Art. IX, Sec. I, Tex. Conat.
The responsibilityfor the managementand operation of
the hospital is placed in a Board of Hospital Managers by the
State Legislatureby Article 4494, Section-5, Vernon’s Civil
Statutes, which reads, in part, as follows:
(I
. . . ,whoaeduties shail be to manage, control
and admidiaterthe hospital or hospital system of
the Hospital District. . . .* (Emphasisadded.)
Purther, certain actions of the Board are subject to
the approval of the CommissionersCourt. tit. 44948, Sec. 5b,
Vernon’s Civil Statutes.
As long*aa the Board fulfills its constitutionalduty
to care for indigents and needy persons, it may contract with
others and perform services for others, in the field of health
care when in the Board's judgment such contract is in the fur-
therance of its duty to *manage* or "administer"the needs and
operationsof the district.
You state that the licensed medical doctor pathologist,
one of the employees of the hospital who performs ‘he teatt, is
employed by the hoepital on a monthly salary basis. Your two
questions,quoted in full at the outset of~thia opinion, state
that these teats ' ... . are perfomed by R. E. Thomason 'General
noapital . . ,I) at a discounted fee rate or basis. The statement
of faota you presented to ua indioated that the fee charged for
the teat L8 colleated by the hoapital in its own name -andnot in
the name of the doctor. Xf such is the case, then the hospital
diatrtct and the doctor are operating in vfo&ation of the Medical
Practict Act. Art. 741, Vernon's Ptnal Code, and Art. 4505,
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.
HonorableGeorge N. Rodriguez, Jr., page 3 (h-912)
aubd. 12,'Vernon’s Civil Statutes; Rockett v. Texas State Board
of Medical Examiners, 207 S.W.2d 198 (Tex.Civ.App.1956, error
. Watt v. Texas State Board of Medical Examiners, 303 S.W.
- z i9i (Tex.Civ.App.1957, error ref.), cert. den. 356 U.S. 912:
Attorney General's-OpinionsNos. WW-278'(1957)and WW-1511 (1962).
We suggest that all of the terms of the contract of employmentbe-
tween the hospital and its medical doctor personnel be examined
in light of these authorities. .
SUMMARY
As long as it fulfills its constitutionalduty
to care for indigents and needy persona, a County
lioapitalDistrict, through its Board of Mamagera, has
authority to contractwith private hospitals and doc-
tors within the District for laboratoryservices at a
discountedfee rate and vice versa by reason of the
Board's duty and authority to manage and administer
the Hospital District.
The contractsbetween the hospital and its medi-
cal doctor personnel must confo to the requirements
of the Medical Practice Act. 3":'
Ve.rytruly yours,
Attorney General of Texas
Preparedby Sam L. Jones, Jr.
AssistantAttorney General
APPROVED:
OPINI,ONCDRRITTEE
Kerns Taylor, Chairman
W. R. Allen, Co-Chairman
IVan Williams
Arthur Sandlin
Charles Parrttt
Robert Lemena
MRADE P. GRIFFIN
Staff Legal Assistant
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