Texas Legislative Update

October 2024


Michael Grimes, Imperium Public Affairs (TCEP Lobbyist)

Interim Hearings Continue
As the 2025 legislative session approaches, Texas Senate and House committees are actively meeting to identify key policy areas that will require attention. In healthcare, issues that have been topics of discussion include scope of practice and access to care, the role of AI in healthcare, and non-compete agreements. Through public hearings, expert testimony, and stakeholder input, these committees will shape the legislative agenda for 2025, laying the foundation for future policy decisions. 

Over the past few months, several committees have held hearings to address key healthcare topics. Last month, the Senate Committee on Health and Human Services held its second interim hearing to examine critical issues related to healthcare access in Texas. Testimony was provided by various stakeholder groups, including the Texas Medical Association, the Texas Society of Anesthesiologists, and the Texas Nurse Practitioner Association. 

A major focus of the hearing was the shortage of primary care providers, particularly in rural areas. The role of nurse practitioners in providing primary care and the need to reduce delegation barriers to increase access were points of discussion. Dr. Ray Callas, president of the Texas Medical Association, testified on behalf of the organization. He addressed the delegation agreements between physicians and nurse practitioners, emphasizing the importance of maintaining physician oversight to ensure patient safety and quality of care. While there was no definitive recommendation made, there was a strong call to reexamine these agreements and delegation barriers amongst committee members.

The House Select Committee on Artificial Intelligence met earlier this month to discuss the integration and impact of artificial intelligence in the healthcare industry. The hearing underscored several challenges in implementing AI in healthcare, emphasizing the need for reliable models that ensure patient safety and quality care across diverse settings. Key concerns included equitable access to AI, particularly for smaller and rural hospitals with limited financial resources, and the importance of maintaining human oversight to minimize risks. AI's potential to reduce administrative burdens, such as scheduling and documentation, and its role in predictive analytics and claims tracking, was highlighted. While AI could significantly improve healthcare delivery in rural areas, concerns around cost and trust in the technology remain.

At the beginning of September, the Lieutenant Governor released a second round of interim charges for the Texas Senate to consider in preparation for the 89th Legislative Session. One of those charges was for the Senate Committee on Business and Commerce to evaluate the impact of the Federal Trade Commission's final rule on non-compete agreements for Texas employers. While this discussion was not limited to medical non-compete agreements, the hearing discussed several aspects of these agreements. The Texas Medical Association (TMA) emphasized the importance of balancing the interests of employers, employees, and the public. They highlighted that non-compete agreements in the medical field have unique public policy concerns, such as impacting continuity of care, access to medical services, and patient choice. TMA has advocated for legislative changes to limit the duration of non-compete clauses to one-year post-employment and to restrict the geographic scope to the practice location where the physician works.

Additionally, there was discussion about the Federal Trade Commission's (FTC) proposed rule to ban non-compete clauses, which has been blocked by federal judges. It was argued that the Texas legislature should impose additional parameters on physician non-compete agreements, as many agreements would not be affected by the FTC rule, especially those involving nonprofit entities. The hearing also covered the potential abuse of non-compete agreements in the healthcare sector, with concerns about multi-year restrictions and extensive geographic limitations that could hinder healthcare access and provider mobility.

Important Dates

  • October 21, 2024 - First day of early voting by personal appearance for November 5 general election.
  • October 25, 2024 - Last day for early voting clerks to receive application for ballot by mail for November 5 general election.
  • Tuesday, November 5, 2024 - General election for federal, state, and county officers.
  • Monday, November 11, 2024 - First day legislators and legislators-elect may file bills for the 89th Legislature.