(a) The board may employ physicians as the board considers necessary for the efficient operation of the district.
(b) The board shall adopt and maintain policies to ensure that a physician employed under this section exercises independent medical judgment when providing care to patients at a district facility. The policies adopted under this subsection must include policies relating to:
(1) credentialing;
(2) quality assurance;
(3) utilization review;
(4) peer review;
(5) medical decision-making; and
(6) due process.

(c) A physician employed by the district under this section is subject to the same standards and procedures regarding credentialing, peer review, quality of care, and privileges as a physician not employed by the district.
(d) The district shall give equal consideration regarding the issuance of credentials and privileges to physicians employed by the district and physicians not employed by the district.
(e) A physician employed by the district shall retain independent medical judgment in providing care to patients at a facility operated by the district and may not be penalized for reasonably advocating for patient care.
(f) The board shall appoint a chief medical officer for the district who must be a physician. For all matters relating to the practice of medicine, each physician employed by the district shall ultimately report to the chief medical officer of the district. The chief medical officer shall notify the Texas Medical Board that the district is employing physicians under this section and that the chief medical officer is the district’s designated contact with the Texas Medical Board. The chief medical officer shall immediately report to the Texas Medical Board any action or event that the chief medical officer reasonably and in good faith believes constitutes a compromise of the independent medical judgment of a physician in caring for a patient.
(g) This section may not be construed as altering, voiding, or prohibiting any relationship between a district and a physician, including a contract or arrangement with an approved nonprofit health corporation that is certified under Section 162.001(b), Occupations Code, and that holds a certificate of authority issued under Chapter 844, Insurance Code.
(h) A contract to employ a physician under this section may not include a covenant not to compete on termination of the contract.
(i) This section may not be construed to authorize the board to supervise or control the practice of medicine, as prohibited by Subtitle B, Title 3, Occupations Code.