(a) The board by rule shall certify a health organization that:
(1) applies for certification on a form approved by the board; and
(2) presents proof satisfactory to the board that the organization meets the requirements of Subsection (b) or (c).
(b) The board shall approve and certify a health organization that:
(1) is a nonprofit corporation under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon’s Texas Civil Statutes) organized to:
(A) conduct scientific research and research projects in the public interest in the field of medical science, medical economics, public health, sociology, or a related area;
(B) support medical education in medical schools through grants and scholarships;
(C) improve and develop the capabilities of individuals and institutions studying, teaching, and practicing medicine;
(D) deliver health care to the public; or
(E) instruct the general public in medical science, public health, and hygiene and provide related instruction useful to individuals and beneficial to the community;
(2) is organized and incorporated solely by persons licensed by the board; and
(3) has as its directors and trustees persons who are:
(A) licensed by the board; and
(B) actively engaged in the practice of medicine.

Terms Used In Texas Occupations Code 162.001

  • Board: means the Texas Medical Board. See Texas Occupations Code 151.002
  • Contract: A legal written agreement that becomes binding when signed.
  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Population: means the population shown by the most recent federal decennial census. See Texas Government Code 311.005
  • Practicing medicine: means the diagnosis, treatment, or offer to treat a mental or physical disease or disorder or a physical deformity or injury by any system or method, or the attempt to effect cures of those conditions, by a person who:
    (A) publicly professes to be a physician or surgeon; or
    (B) directly or indirectly charges money or other compensation for those services. See Texas Occupations Code 151.002
  • Rule: includes regulation. See Texas Government Code 311.005

(c) The board shall certify a health organization to contract with or employ physicians licensed by the board if the organization:
(1) is a nonprofit corporation under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon’s Texas Civil Statutes) and Section 501(c)(3), Internal Revenue Code of 1986 (26 U.S.C. § 501(c)(3)); and
(2) is organized and operated as:
(A) a migrant, community, or homeless health center under the authority of and in compliance with 42 U.S.C. § 254b or 254c; or
(B) a federally qualified health center under 42 U.S.C. § 1396d(l)(2)(B).
(c-1) Expired.
(c-2) Expired.
(c-3) Expired.
(c-4) The board shall certify a health organization to contract with or employ physicians licensed by the board if the organization:
(1) is a hospital district:
(A) recognized by a federal agency as a public entity eligible to receive a grant related to a community or federally qualified health center described by Subdivision (2); and
(B) created in a county with a population of more than 1.2 million that was not included in the boundaries of a hospital district before September 1, 2003; and
(2) is organized and operated as:
(A) a migrant, community, or homeless health center under the authority of and in compliance with 42 U.S.C. § 254b or 254c; or
(B) a federally qualified health center under 42 U.S.C. § 1396d(l)(2)(B).
(c-5) This section applies to a hospital district described by Subsection (c-4) only in relation to the hospital district’s operations as a community or federally qualified health center described by Subsection (c-4)(2).

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