PA Practice Management
HB 2882 (Cortez)
Bill Team Lead: Eva Montes, MCG, MPAS, PA-C
Allows PAs to be officers and participants in the business operations and management of the medical practices where they have a minority ownership stake. This bill does not change that PAs can have minority ownership of a medical practice.
This bill neither changes the way physicians practice medicine nor will it disrupt the established regulations for PA supervision.
BACKGROUND
- Before 2011, PAs had the right to hold a majority ownership stake in and serve as officers of medical practices.
- In Texas, PAs can become minority owners of a medical practice, whether an entity organized as a corporation, a professional partnership, a professional association, or a professional LLC, with the purpose of providing services that fall within the
scope of practice of those practitioners.
- Currently, a PA is prevented from becoming an officer or participant in the business management of these partnerships.
- During the 86th Legislative Session, the bill was passed unanimously out of the House Public Health Committee; however, due to the COVID-19 pandemic, this bill did not receive a hearing in 2021.;
- In rural communities where the demand for healthcare providers is high, coupled with the projected physician shortage, the current law restricts access to care for patients in these communities
- By allowing PAs to manage their practices, especially in rural settings, we could strengthen the process of closing gaps in healthcare access and allow PAs to make a long-term investment in their communities and deliver high-quality care to their patients.
- This bill does not change that PAs can have a minority ownership of a medical practice. This bill neither changes the way physicians practice medicine, nor will it disrupt the established regulations for PA supervision.
THE ASK
This bill seeks to allow PAs to be officers and participants in the business operations and management of the medical practices where they have a minority ownership stake by repealing Sections 22.0561(b), 152.0551(b), and 301.012(a-2) of the Business
Organizations Code.
RATIONALE
The current law makes the PA a “silent partner” in a business where they have a financial stake and fiduciary responsibility. The bill does not impact the ownership stake of any partner, nor does it interfere with the patient care operations
of the practice.
PREVIOUS TEXAS BILLS INTRODUCED
STATES THAT DO NOT RESTRICT PA PRACTICE OWNERSHIP
CA, CO, CT, ID, KS, ME, MI, MN, NJ, OK, OR, SD, TN, WI
RESOURCES & REFERENCES
- A 2016 study published in the Journal of the American Academy of PAs reported that PAs and NPs who provide primary care services in medically underserved areas could help offset physician shortages and positively impact the local economy. SOURCE >>
- According to the Rural Health Information Hub, of Texas’ almost 30 million residents, over 10% live in an area designated as rural. As of 2021, those 3 million residents have access to 333 Rural Health Clinics (RHCs).
SOURCE >>
- RHCs must have a“nurse practitioner, physician assistant, or certified nurse-midwife available to furnish patient care services at least 50 percent of the time the RHC operates.” SOURCE >>
Complete bill language, sponsor information, and bill history can be found here.
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