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                                                      PRINTER'S NO. 1427

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1197 Session of 2003


        INTRODUCED BY LEACH, THOMAS, MANN, CAPPELLI, BARD, BUNT,
           FRANKEL, MELIO, WASHINGTON AND YOUNGBLOOD, APRIL 16, 2003

        REFERRED TO COMMITTEE ON PROFESSIONAL LICENSURE, APRIL 16, 2003

                                     AN ACT

     1  Amending the act of March 20, 2002 (P.L.154, No.13), entitled
     2     "An act reforming the law on medical professional liability;
     3     providing for patient safety and reporting; establishing the
     4     Patient Safety Authority and the Patient Safety Trust Fund;
     5     abrogating regulations; providing for medical professional
     6     liability informed consent, damages, expert qualifications,
     7     limitations of actions and medical records; establishing the
     8     Interbranch Commission on Venue; providing for medical
     9     professional liability insurance; establishing the Medical
    10     Care Availability and Reduction of Error Fund; providing for
    11     medical professional liability claims; establishing the Joint
    12     Underwriting Association; regulating medical professional
    13     liability insurance; providing for medical licensure
    14     regulation; providing for administration; imposing penalties;
    15     and making repeals," providing for the Medical Professional
    16     Liability Discipline Board; further providing for the
    17     definition of "licensure board," for reporting, for
    18     confidentiality of records of licensure boards and for
    19     licensure board-imposed civil penalty; and providing for
    20     Medical Professional Liability Disciplinary Board-imposed
    21     license suspension.

    22     The General Assembly of the Commonwealth of Pennsylvania
    23  hereby enacts as follows:
    24     Section 1.  Section 746(a) of the act of March 20, 2002
    25  (P.L.154, No.13), known as the Medical Care Availability and
    26  Reduction of Error (Mcare) Act, is amended to read:
    27  Section 746.  Mandatory reporting.


     1     (a)  General provisions.--Each medical professional liability
     2  insurer and each self-insured health care provider, including
     3  the fund established by this chapter, which makes payment in
     4  settlement or in partial settlement of or in satisfaction of a
     5  judgment in a medical professional liability action or claim
     6  shall provide to the appropriate licensure board and the Medical
     7  Professional Liability Disciplinary Board a true and correct
     8  copy of the report required to be filed with the Federal
     9  Government by section 421 of the Health Care Quality Improvement
    10  Act of 1986 (Public Law 99-660, 42 U.S.C. § 11131). The copy of
    11  the report required by this section shall be filed
    12  simultaneously with the report required by section 421 of the
    13  Health Care Quality Improvement Act of 1986. The department
    14  shall monitor and enforce compliance with this section. The
    15  Bureau of Professional and Occupational Affairs [and], the
    16  licensure boards and the Medical Professional Liability
    17  Disciplinary Board shall have access to information pertaining
    18  to compliance.
    19     * * *
    20     Section 2.  The definition of "licensure board" in section
    21  902 of the act is amended to read:
    22  Section 902.  Definitions.
    23     The following words and phrases when used in this chapter
    24  shall have the meanings given to them in this section unless the
    25  context clearly indicates otherwise:
    26     "Licensure board."  [Either] The term shall mean either of
    27  the following:
    28         (1)  In connection with medical professional liability
    29     claims only, the Medical Professional Liability Discipline
    30     Board.
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     1         (2)  In connection with any matter other than a medical
     2     professional liability claim, either or both of the
     3     following, depending on the licensure of the affected
     4     individual:
     5             [(1)] (i)  The State Board of Medicine.
     6             [(2)] (ii)  The State Board of Osteopathic Medicine.
     7     * * *
     8     Section 3.  The act is amended by adding a section to read:
     9  Section 902.1.  Medical Professional Liability Disciplinary
    10                 Board.
    11     (a)  Establishment.--The Medical Professional Liability
    12  Disciplinary Board is established and shall consist of seven
    13  members appointed by the Governor who shall be medical or
    14  osteopathic doctors with unrestricted licenses to practice
    15  medicine and surgery in this Commonwealth and who have some type
    16  of board certification from the State Board of Medicine or the
    17  State Board of Osteopathic Medicine, with the advice and consent
    18  of a majority of the members elected to the Senate.
    19     (b)  Duty.--The duty of the Medical Professional Liability
    20  Disciplinary Board shall be to discipline, in connection with
    21  medical professional liability claims only, medical doctors
    22  licensed to practice medicine by the State Board of Medicine or
    23  osteopathic doctors licensed to practice osteopathic medicine by
    24  the State Board of Osteopathic Medicine.
    25     (c)  Terms of office.--The term of each member of the Medical
    26  Professional Liability Disciplinary Board shall be four years or
    27  until his or her successor has been appointed and qualified, but
    28  not longer than six months beyond the four-year period. In the
    29  event that any of the members die or resign or otherwise become
    30  disqualified during his or her term, a successor shall be
    20030H1197B1427                  - 3 -     

     1  appointed in the same way and shall hold office for the
     2  unexpired term. No member shall be eligible for appointment to
     3  serve more than two consecutive terms.
     4     (d)  Quorum.--A majority of the members of the Medical
     5  Professional Liability Disciplinary Board serving in accordance
     6  with law shall constitute a quorum for purposes of conducting
     7  the business of the Medical Professional Liability Disciplinary
     8  Board. A member may not be counted as part of a quorum or vote
     9  on any issue unless he or she is physically in attendance at the
    10  meeting.
    11     (e)  Chairman.--The Medical Professional Liability
    12  Disciplinary Board shall select annually a chairman from among
    13  its members.
    14     (f)  Compensation.--EAch member of the Medical Professional
    15  Liability Disciplinary Board shall receive $60 per diem when
    16  actually attending to the work of the Medical Professional
    17  Liability Disciplinary Board. Members shall also receive the
    18  amount of reasonable travel, hotel and other necessary expenses
    19  incurred in the performance of their duties in accordance with
    20  Commonwealth regulations.
    21     (g)  Sunset.--The Medical Professional Liability Disciplinary
    22  Board is subject to evaluation, review and termination in the
    23  manner provided for in the act of December 22, 1981 (P.L.508,
    24  No.142), known as the Sunset Act.
    25     (h)  Attendance at meetings.--A member of the Medical
    26  Professional Liability Disciplinary Board who fails to attend
    27  three consecutive meetings shall forfeit his or her seat unless
    28  the chairman, upon written request from the member, finds that
    29  the member should be excused from a meeting because of illness
    30  or the death of a family member.
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     1     (i)  Meetings.--The Medical Professional Liability
     2  Disciplinary Board shall meet at least once every two months and
     3  at such additional times as may be necessary to conduct the
     4  business of the Medical Professional Liability Disciplinary
     5  Board.
     6     (j)  Executive secretary.--The Medical Professional Liability
     7  Disciplinary Board, with the approval of the Governor, shall
     8  appoint and fix the compensation of an executive secretary who
     9  shall be responsible for the day-to-day operation of the Medical
    10  Professional Liability Disciplinary Board and administration of
    11  Medical Professional Liability Disciplinary Board activities.
    12     Section 4.  Sections 903, 907 and 908 of the act are amended
    13  to read:
    14  Section 903.  Reporting.
    15     A physician shall report to the State Board of Medicine [or],
    16  the State Board of Osteopathic Medicine or the Medical
    17  Professional Liability Disciplinary Board, as appropriate,
    18  within 60 days of the occurrence of any of the following:
    19         (1)  Notice of a complaint in a medical professional
    20     liability action that is filed against the physician. The
    21     physician shall provide the docket number of the case, where
    22     the case is filed and a description of the allegations in the
    23     complaint.
    24         (2)  Information regarding disciplinary action taken
    25     against the physician by a health care licensing authority of
    26     another state.
    27         (3)  Information regarding sentencing of the physician
    28     for an offense as provided in section 15 of the act of
    29     October 5, 1978 (P.L.1109, No.261), known as the Osteopathic
    30     Medical Practice Act, or section 41 of the act of December
    20030H1197B1427                  - 5 -     

     1     20, 1985 (P.L.457, No.112), known as the Medical Practice Act
     2     of 1985.
     3         (4)  Information regarding an arrest of the physician for
     4     any of the following offenses in this Commonwealth or another
     5     state:
     6             (i)  18 Pa.C.S. Ch. 25 (relating to criminal
     7         homicide);
     8             (ii)  18 Pa.C.S. § 2702 (relating to aggravated
     9         assault); or
    10             (iii)  18 Pa.C.S. Ch. 31 (relating to sexual
    11         offenses).
    12             (iv)  A violation of the act of April 14, 1972
    13         (P.L.233, No.64), known as The Controlled Substance,
    14         Drug, Device and Cosmetic Act.
    15  Section 907.  Confidentiality of records of licensure boards.
    16     (a)  General rule.--All documents, materials or information
    17  utilized solely for an investigation undertaken [by the State
    18  Board of Medicine or State Board of Osteopathic Medicine] a
    19  licensure board or concerning a complaint filed with [the State
    20  Board of Medicine or State Board of Osteopathic Medicine] a
    21  licensure board shall be confidential and privileged. No person
    22  who has investigated or has access to or custody of documents,
    23  materials or information which are confidential and privileged
    24  under this subsection shall be required to testify in any
    25  judicial or administrative proceeding without the written
    26  consent of [the State Board of Medicine or State Board of
    27  Osteopathic Medicine] a licensure board. This subsection shall
    28  not preclude or limit introduction of the contents of an
    29  investigative file or related witness testimony in a hearing or
    30  proceeding held before [the State Board of Medicine or State
    20030H1197B1427                  - 6 -     

     1  Board of Osteopathic Medicine] a licensure board. This
     2  subsection shall not apply to letters to a licensee that
     3  disclose the final outcome of an investigation or to final
     4  adjudications or orders issued by the licensure board.
     5     (b)  Certain disclosure permitted.--Except as provided in
     6  subsection (a), this section shall not prevent disclosure of any
     7  documents, materials or information pertaining to the status of
     8  a license, permit or certificate issued or prepared by the State
     9  Board of Medicine or State Board of Osteopathic Medicine or
    10  relating to a public disciplinary proceeding or hearing
    11  conducted by the State Board of Medicine, State Board of
    12  Osteopathic Medicine or the Medical Professional Liability
    13  Disciplinary Board.
    14  Section 908.  Licensure board-imposed civil penalty.
    15     In addition to any other civil remedy or criminal penalty
    16  provided for in this act, the act of December 20, 1985 (P.L.457,
    17  No.112), known as the Medical Practice Act of 1985, or the act
    18  of October 5, 1978 (P.L.1109, No.261), known as the Osteopathic
    19  Medical Practice Act, the [State Board of Medicine and the State
    20  Board of Osteopathic Medicine] appropriate licensure board, by a
    21  vote of the majority of the maximum number of the authorized
    22  membership of each board as provided by law or by a vote of the
    23  majority of the duly qualified and confirmed membership or a
    24  minimum of five members, whichever is greater, may levy a civil
    25  penalty of up to $10,000 on any current licensee who violates
    26  any provision of this act, the Medical Practice Act of 1985 or
    27  the Osteopathic Medical Practice Act or on any person who
    28  practices medicine or osteopathic medicine without being
    29  properly licensed to do so under the Medical Practice Act of
    30  1985 or the Osteopathic Medical Practice Act. The appropriate
    20030H1197B1427                  - 7 -     

     1  licensure boards shall levy this penalty only after affording
     2  the accused party the opportunity for a hearing as provided in 2
     3  Pa.C.S. (relating to administrative law and procedure).
     4     Section 5.  The act is amended by adding a section to read:
     5  Section 908.1.  Medical Professional Liability Disciplinary
     6                     Board-imposed license suspension.
     7     (a)  Reporting requirement.--Each entity which makes a
     8  payment under an insurance policy, self-insurance, or otherwise,
     9  for the benefit of a physician in settlement of or in
    10  satisfaction in whole or in part of a claim or judgment against
    11  a physician for medical professional liability shall report
    12  within 48 hours of making the payment the information required
    13  under 45 CFR § 60.7 (relating to reporting medical malpractice
    14  payments) to the Medical Professional Liability Disciplinary
    15  Board.
    16     (b)  Physician license suspension.--In addition to any
    17  authority of the State Board of Medicine and the State Board of
    18  Osteopathic Medicine to suspend the license of a physician under
    19  this act, the act of December 20, 1985 (P.L.457, No.112), known
    20  as the Medical Practice Act of 1985, or the act of October 5,
    21  1978 (P.L.1109, No.261), known as the Osteopathic Medical
    22  Practice Act, the Medical Professional Liability Disciplinary
    23  Board shall have the power and duty to suspend immediately the
    24  license of any physician who has three paid medical professional
    25  liability claims within the immediately preceding seven years.
    26  The period of suspension shall be no less than 60 days, which
    27  period may be extended by the Medical Professional Liability
    28  Disciplinary Board. Upon suspension or a physician's license,
    29  the Medical Professional Liability Disciplinary Board must
    30  commence immediately an investigation of the physician for the
    20030H1197B1427                  - 8 -     

     1  purpose of imposing additional disciplinary sanctions or
     2  corrective measures as warranted.
     3     (c)  Procedure.--All actions of the Medical Professional
     4  Liability Disciplinary Board under this section shall be taken
     5  subject to the right of notice, hearing, adjudication and appeal
     6  therefrom in accordance with the provisions of 2 Pa.C.S.
     7  (relating to administrative law and procedure).
     8     (d)  Nonapplicability.--This section shall not apply to
     9  physicians exempt under section 711(j).
    10     (e)  Definition.--As used in this section, the term "paid
    11  medical professional liability claims" includes, but is not
    12  limited to, an indemnity payment and money paid as a result of a
    13  settlement or judgment in a medical professional liability
    14  action against a physician.
    15     Section 6.  This act shall take effect in 60 days.










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