R-684

August 25, 1947

Hon. George H. Sheppard State Comptroller Capitol Station Austin, Texas Opinion No. V-357

Re: Authority or the Crippled Children’s Division 0r the State Department or Health to pay for services rendered crippled children in accord~ance

with S. B. 360, 50th Leg.

Dear Sir:

We refer to your letter or recent~datein which you enclosed a letter from Dr. Geo.W. Cox, State Health Orficer,which reads as follows:

"SenateBill No. 360, Regular Session, Fiftieth Legislature, provides in Section 1 thereof, ‘TheState Comptroller of Publio Accounts is hereby authorized to draw proper warrants in favor of either theUniversity of Texas School ofMedicine, the John Sealy Hospital, or the State Hospital for crippled and deformed children at Galveston based on vouchers or claims submittedby said institutionscovering reasonable fees and charges for hospitalizationand proressional services rend,ered by members of the staffs of said institutionsin the care, diagnosis,and treatment of arippled children under the provisions of Chapter 216, Acts, Regular Session, Forth-ninthLegislature, and in the hospitalization,care and treatment of patients forwarded to said institutions from the State Eleemosynary Institutions uqder the direction of the State Board of bontrol, and the State Treasurer is hereby authorized and directed to paywarrants so issued against any available funds appropriated,granted, or donated to the Crippled Children’sDivision of the State Department of Health or the State Department of Health for the purpose of defrayingHon. George H. Sheppard - Page 2 (V-357)

the expenses of treatment of crippled children under said Act and out of available funds appropriated to the State Board of Control for the hospitalization,care and treatment of patients in and from the State Eleemosynnry Institutions under the directions of said State Board of Control. Such paymentsmade to said institutions shall be creditedand deposited to the local institutional funds of said institutionreceiving such payments.'

~'*I. shall appreciate your advising if the Lrippled Children'sDivision of the State Department of Healthmay proceed in paying the John Sealy Hospital and the physiciansand surgeonswho are employedby the-:*' University of Texas School ofMedicine in the

manner prescribed for in this statute."

We also quote from a subsequent,letterwhich you received from the State Health Officer, relatingto the samematter, as follows:

"In answer to your letter of July 25, 1947, concerningHouse Bill No. 712, I herewith quote informationsupplied by the BusinessManager of the University of Texas MedicalBranch concerning the dispositionof funds received in payment for professional services of staffmembers of the John Sealy Hospital and hospitalizationof crippled children in the John Scaly or affiliated hospitals:

I, ,0 s

.all monies receivedby the University of TexasMedical Branch in payment of fees for professional services of members of its staffwill be deposited in a General Fund bank account. Expenditures from the General Fund aremade upon authority of the Board of Regents and disbursementswill not be made tomembers of the staff for professional fees earned for the General Fund.'

"'In regard to question number two, thiswill advise you that all revenues receivedby the University of Texas for services of the University of Texas and its employeesare likewise deposited in the General Fund of the University and are expended upon authority of theboard of Re-Hon. George H. Sheppard - Page 3 (V-357)

gents. The University does not act as a collectionagency formembers of the staff

nor make payment to employees other than

on a strictly salarybasis.I’*

Senate Bill No. 360 was never passed,but H.B. 712was passed by the 50th Legislature and signedby the Governor on May 23, 1947, and is an exact duplication of Senate Bill 360. Therefore, our remarkswill be confined to the HouseBill instead of the Senate Bill.

In view of the plain, clear, and unambiguous language in the above Bill, it is the opinion of thi.s Department that the Crippled Children’sDivision of the State Department of Health may proceed in paying the John Sealy Hospital and the University of Texas School of Medicine in themanner prescribed in the statute.

Since the BusinessManager of the University of Texas School ofMedicine haswritten to the effect that all of such fees will be deposited in the General Fund and that none of said fundswill be paid to the members of the staff,we shall pretermit a discussion of that phase of your question relative to paying the physicians and surgeonswho are employedby the University of Texas School of Medicine. However, in passing,
we wish to state that in our opini~on it comeswithin the purview of Opinion NO. O-4433, a copy of which is enclosed.

SUMURY

The Crippled Children’sDivision of the State Department of Healthmay proceed in paying the John Sealy Hospital and the University of Texas School ofMedicine for services rendered crippled child~ren in themanner prescribed in H. B. 712 of the 50th Leg., R. S., 1947. Very truly yours

APPROVED: ATTORNEY GENERAL OF TEXAS

BA:djm:jrb BY

Assistant