Ronotable George N. Rodriguez, Jr. Opinion No. M-912 

County Attorney 

El Paso county Re: ~Queetions relating to 

Room 201, City-County Building authority to contract by 

El P&so, Texas 79901 El Paso County Hospital 

with.private hospital 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 

specifically R. E. Thomason General Hospital, have 

authority to contract with a privately owrled hospital 

situated within the Hospital District whereby laboratory tests pertaining to patients of the privately 

owned hospital are performed by R. E. Thomason 

General Hospital at a‘disdounted fee rate? 

"Does the El Paso County Hospital District and 

specifically R. E. Thomson General Hospital, have 

authority~ to contract with private physicians in El 

Paso County, TeXas, whereby laboratory tests pertaining 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 laboratory testing with this equipment has been 

furnished by 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.atient at 

R. B. Thomason General Hospital has been denied or deprived 

utilization of 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 Providence Memorial 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 pathologist who $8 a licensed 

medical dootor, on a monthly salary basis. 

Our opinion is that the El Paso County Bospital District, and the R. E. Thomason General Hospital (hereinafter 

referred to as the hospital) and its lriadical staff, my under 

lawful contracts perform the laboratory tests under consfderatlon 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 constitutional obligation 

to care for the needy which , according to you. recited facts, 

has and is being met. Art. IX, Sec. I, Tex. Conat. 

The responsibility for the management and operation of 

the hospital is placed in a Board of Hospital Managers by the 

State Legislature by Article 4494, Section- 5, Vernon’s Civil 

Statutes, which reads, in part, as follows: 

(I . . . ,whoae duties shail be to manage, control 

and admidiater the hospital or hospital system of 

the Hospital District. . . .* (Emphasis added.) 

Purther, certain actions of the Board are subject to 

the approval of the Commissioners Court. tit. 44948, Sec. 5b, 

Vernon’s Civil Statutes. 

As long*aa the Board fulfills its constitutional duty 

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 furtherance of its duty to *manage* or "administer" the needs and 

operations of 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 -and not 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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. 

Honorable George 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-Opinions Nos. WW-278' (1957) and WW-1511 (1962). 

We suggest that all of the terms of the contract of employment between the hospital and its medical doctor personnel be examined 

in light of these authorities. . 

SUMMARY 

As long as it fulfills its constitutional duty 

to care for indigents and needy persona, a County 

lioapital District, through its Board of Mamagera, has 

authority to contract with private hospitals and doctors within the District for laboratory services at a 

discounted fee rate and vice versa by reason of the 

Board's duty and authority to manage and administer 

the Hospital District. 

The contracts between the hospital and its medical doctor personnel must confo 

of the Medical Practice Act. 3" 

to the requirements 

:' 

Ve.ry truly yours, 

Attorney General of Texas 

Prepared by Sam L. Jones, Jr. 

Assistant Attorney General 

APPROVED: 

OPINI,ON CDRRITTEE 

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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