RonotableGeorge N. Rodriguez, Jr. Opinion No. M-912 County Attorney El Paso county Re: ~Queetionsrelatingto Room 201, City-CountyBuilding authority to contractby El P&so, Texas 79901 El Paso County Hospital with.privatehospital for latter'spatient5at a Dear Mr. 'Rodriguez: discounted fee rate.

By your recent letteryou 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 contractwith a privately owrled hospital situatedwithin the HospitalDistrictwhereby laboratory tests pertainingto patients of the privately owned hospital are performedby 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 contractwith private physicians in El Paso County, TeXas, whereby laboratorytests 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 laboratorytestingwith this equipmenthas been furnished

by R. E. Thomason Hospital for a privately owned hospitalwithin the HospitalDistrict; and that "during the period that this agreemnt has been in effect. no p.atient

at R. B. Thomason General Hospitalhas 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 operatedby personnel employedby R. E. Thomason
-4442-nonorableGeorge **N.** Rodriguez, Jr., page 2 **(M-912)**

General Hospital, includinga pathologist who $8 a licensed medical dootor, on a monthly salary basis.

Our opinion is that the El Paso County BospitalDistrict, and the R. E. Thomason General Hospital (hereinafter referredto as the hospital)and its lriadical staff, my under lawful contracts perform the laboratorytests under consfderatlon but the existing terms **of** employment between the hospital and its medical doctor pathologist, **with** feer being charged

**‘ for**  the.

**doctor ’** **s** servicesby the hospital, appear'toviolate the Medical Practice**Aat.**

**A** hospital districthas 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 managementand operationof the hospital is placed in a Board of HospitalManagersby 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 admidiaterthe 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 contractwith 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 operationsof **the district.** 

You state that the licensedmedical doctor pathologist, one of the employees of the hospitalwho performs ‘ he teatt, is employedby 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 colleatedby 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&ationof the Medical **Practict Act.**  **Art.** 741, Vernon's Ptnal Code, and Art. 4505,
**-.4443-**. 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-Opinions Nos. WW-278'(1957)and WW-1511 (1962). **We** suggestthat all **of** the terms of the contract of employmentbetween the hospital and its medical doctor personnelbe 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**  authorityto contractwith private hospitals and doctors 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 HospitalDistrict. The contractsbetween the hospital and its medical doctor personnelmust confo **of** the Medical Practice Act. 3" to the requirements :' Ve.ry truly yours,

Attorney General of Texas Preparedby 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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