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Texas Business Organizations Code - Section 22.056. Health Organization Corporation

Legal Research Home > Texas Lawyer > Business Organizations Code > Texas Business Organizations Code - Section 22.056. Health Organization Corporation

§ 22.056. HEALTH ORGANIZATION CORPORATION.  (a) Doctors 
of medicine and osteopathy licensed by the Texas State Board of 
Medical Examiners and podiatrists licensed by the Texas State Board 
of Podiatric Medical Examiners may form a corporation that is 
jointly owned, managed, and controlled by those practitioners to 
perform a professional service that falls within the scope of 
practice of those practitioners and consists of:
		(1)  carrying out research in the public interest in 
medical science, medical economics, public health, sociology, or a 
related field;
		(2)  supporting medical education in medical schools 
through grants or scholarships;
		(3)  developing the capabilities of individuals or 
institutions studying, teaching, or practicing medicine, including 
podiatric medicine;
		(4)  delivering health care to the public;  or                                
		(5)  instructing the public regarding medical science, 
public health, hygiene, or a related matter.
	(b)  When doctors of medicine, osteopathy, and podiatry form 
a corporation that is jointly owned by those practitioners, the 
authority of each of the practitioners is limited by the scope of 
practice of the respective practitioners and none can exercise 
control over the other's clinical authority granted by their 
respective licenses, either through agreements, the certificate of 
formation or bylaws of the corporation, directives, financial 
incentives, or other arrangements that would assert control over 
treatment decisions made by the practitioner.  The Texas State 
Board of Medical Examiners and the Texas State Board of Podiatric 
Medical Examiners continue to exercise regulatory authority over 
their respective licenses.

Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.                     

Last modified: August 11, 2007