House Representative

Coleman, Garnet F.

FOR IMMEDIATE RELEASE 05/13/2011

Governor Perry Signs Bill Allowing Rural Hospitals to Directly Hire Doctors

Austin--Governor Perry yesterday signed SB 894 by Senator Duncan and Representative Coleman, which will allow hospitals in rural Texas to hire doctors directly. SB 894/HB 1700 will let critical access hospitals, sole community hospitals, and hospitals located in counties with a population of 50,000 or less to directly employ physicians.

"I'm proud of having worked with Senator Duncan on making this important legislation law," said Representative Coleman. "This is a major shift in state policy. Doctors will have the choice between hanging up their own shingle or working directly for a hospital."

Texas is one of the few states that prohibits the employment of doctors by non-physician entities. This policy adversely affects rural communities, thus resulting in a shortage of physicians in many parts of the state.

Added Senator Duncan "This legislation will help rural hospitals compete for practitioners and give them better opportunities to recruit and retain qualified physicians. I am pleased that rural residents including residents in West Texas will finally have access to the critical healthcare they need."

Concluded Rep. Coleman, "I want to thank Governor Perry for signing this law. His signature will increase access to hospital based primary care and specialists for much of rural Texas."

Representative Coleman is available for comment.



Contact: Rebecca Acuna
(512) 463-0524