Tex. Codes » Occupations Code · TITLE 3. HEALTH PROFESSIONS · SUBTITLE B. PHYSICIANS · CHAPTER 162. REGULATION OF PRACTICE OF MEDICINE
Texas Codes

Tex. Occ. Code § 162.001 (2026)

Certification By Board

✓ current as of May 2026
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Sec. 162.001. CERTIFICATION BY BOARD. (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.

(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. Sec. 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. Section 254b or 254c; or

(B) a federally qualified health center under 42 U.S.C. Section 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. Section 254b or 254c; or

(B) a federally qualified health center under 42 U.S.C. Section 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).

Acts 1999, 76th Leg., ch. 388, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 14.033(a), eff. Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch. 601 (H.B. 1924), Sec. 1, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch. 164 (S.B. 1107), Sec. 8, eff. September 1, 2007.

Acts 2023, 88th Leg., R.S., Ch. 644 (H.B. 4559), Sec. 204, eff. September 1, 2023.

Notes of Decisions
Cited in 8 cases (2 in the last 5 years), 2002–2025 · leading case: St. Joseph Hosp. v. Wolff, 94 S.W.3d 513 (Tex. 2002).
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St. Joseph Hosp. v. Wolff, 94 S.W.3d 513 (Tex. 2002). · cites it 2× “[3] It is undisputed that Wolff's bleeding, which led to her subsequent respiratory and cardiac arrest and her resulting brain damage, was caused by a tracheoinnominate fistula—an erosion between the trachea and the innominate artery, or brachiocephalic trunk.”
Hansen v. Jackson, 519 S.W.3d 614 (Tex. App. 2014). “See Tex. Occ. Code Ann. § 162.001 (b) (West, Westlaw through 2013 3d C.”
Renaissance Med. Found. v. Rebecca Lugo, Individually & as Next Friend of I.B. (Tex. 2025). · cites it 3× “To qualify as an NPHO, the entity must be a nonprofit corporation that is organized solely by persons licensed by the Texas Medical Board for a qualifying purpose—here, the delivery of health care—and is independently certified by the Board. Id. § 162.001(b).”
Michael Fallon, M.D. v. the Univ. of Texas MD Anderson Physician's Network Ans William Hyslop, as President & Chief Exec. Officer of the Univ. of Texas MD Anderson Physician's Network (Tex. App. 2019). · cites it 2× “24 See TEX. OCC. CODE ANN. § 162.001 (non-profit 23 According to the Physicians Network’s bylaws, the President of the Physicians Network “shall be the Chief Executive Officer of the [Physicians Network].”
Renaissance Med. Found. v. Rebecca Lugo, Individually & as Next Friend of XXXXX XXXXX, a Minor (Tex. App. 2023). “TEX. OCC. CODE ANN. § 162.001(b). This parallels the definition of “health organization corporation” as set forth in § 22.”
Henry Andrew Hansen, II, M.D. & Cent. Texas Vein Ctr., P.A. v. Thomas William Jackson, Reg'l Emp. Assistance Prog., Coll. Station Med. Ctr., LLC, & Cmty. Health Sys., PSC (Tex. App. 2014). “See TEX. OCC. CODE ANN. § 162.001(b) (West, Westlaw through 2013 3d C.”
Andrew B. Small, III v. Parker Healthcare Mgmt. Org. (Tex. App. 2013). “051 provides that, except in circumstances not applicable here, a physician and an optometrist or therapeutic optometrist may, for certain purposes set out in the statute, organize, jointly own, and manage any legal entity, including a partnership, a limited partnership, and a…”
Shirley Lenoir, Individually & as Pers. Rep. of the Est. of Shana Lenoir & Christopher McKnight, Individually & as Next Friend of Nayla McKnight v. Leah Anne Gonski Marino F/K/A Leah Anne Gonski & Jaou-Chen Huang, M.D. (Tex. App. 2015). “UT Physicians (formerly Uni Care Plus) is a Texas certified non-profit health corporation which is regulated by TEX. OCC. CODE §162.001, et seq. CR 1046.”
— Tex. Occ. Code § 162.001(b) — 4 cases
St. Joseph Hosp. v. Wolff, 94 S.W.3d 513 (Tex. 2002). “[3] It is undisputed that Wolff's bleeding, which led to her subsequent respiratory and cardiac arrest and her resulting brain damage, was caused by a tracheoinnominate fistula—an erosion between the trachea and the innominate artery, or brachiocephalic trunk.”
Renaissance Med. Found. v. Rebecca Lugo, Individually & as Next Friend of I.B. (Tex. 2025). “To qualify as an NPHO, the entity must be a nonprofit corporation that is organized solely by persons licensed by the Texas Medical Board for a qualifying purpose—here, the delivery of health care—and is independently certified by the Board. Id. § 162.001(b).”
Renaissance Med. Found. v. Rebecca Lugo, Individually & as Next Friend of XXXXX XXXXX, a Minor (Tex. App. 2023). “TEX. OCC. CODE ANN. § 162.001(b). This parallels the definition of “health organization corporation” as set forth in § 22.”
Henry Andrew Hansen, II, M.D. & Cent. Texas Vein Ctr., P.A. v. Thomas William Jackson, Reg'l Emp. Assistance Prog., Coll. Station Med. Ctr., LLC, & Cmty. Health Sys., PSC (Tex. App. 2014). “See TEX. OCC. CODE ANN. § 162.001(b) (West, Westlaw through 2013 3d C.”
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