PRIOR PRINTER'S NOS. 3416, 3530               PRINTER'S NO. 3902

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2520 Session of 1988


        INTRODUCED BY DeWEESE, REBER, KOSINSKI, COY, BATTISTO, LaGROTTA,
           TIGUE, GAMBLE, RITTER, MORRIS, GODSHALL, BELFANTI, TRELLO,
           SHOWERS, YANDRISEVITS, COLAFELLA, PRESSMANN, HARPER, D. W.
           SNYDER AND CORRIGAN, JUNE 6, 1988

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           NOVEMBER 16, 1988

                                     AN ACT

     1  Amending the act of October 15, 1975 (P.L.390, No.111), entitled
     2     "An act relating to medical and health related malpractice
     3     insurance, prescribing the powers and duties of the Insurance
     4     Department; providing for a joint underwriting plan; the
     5     Arbitration Panels for Health Care, compulsory screening of
     6     claims; collateral sources requirement; limitation on
     7     contingent fee compensation; establishing a Catastrophe Loss
     8     Fund; and prescribing penalties," FURTHER PROVIDING FOR        <--
     9     DISCLOSURE BY PHYSICIANS; further providing for DAMAGES,       <--
    10     LIABILITY AND practice and procedure in medical malpractice
    11     actions; FURTHER PROVIDING FOR PROFESSIONAL LIABILITY          <--
    12     INSURANCE; ESTABLISHING THE JOINT COMMITTEE ON PROFESSIONAL
    13     LIABILITY AND PROVIDING FOR ITS POWERS AND DUTIES; AND MAKING
    14     REPEALS.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  The SECTION 102 OF THE act of October 15, 1975     <--
    18  (P.L.390, No.111), known as the Health Care Services Malpractice
    19  Act, is amended by adding a section to read:                      <--
    20     SECTION 102.  PURPOSE.--[IT IS THE PURPOSE OF THIS ACT TO      <--
    21  MAKE AVAILABLE PROFESSIONAL LIABILITY INSURANCE AT A REASONABLE
    22  COST, AND TO ESTABLISH A SYSTEM THROUGH WHICH A PERSON WHO HAS

     1  SUSTAINED INJURY OR DEATH AS A RESULT OF TORT OR BREACH OF
     2  CONTRACT BY A HEALTH CARE PROVIDER CAN OBTAIN A PROMPT
     3  DETERMINATION AND ADJUDICATION OF HIS CLAIM AND THE
     4  DETERMINATION OF FAIR AND REASONABLE COMPENSATION.] THE GENERAL
     5  ASSEMBLY FINDS AND DECLARES AS FOLLOWS:
     6     (1)  THERE ARE SERIOUS PROBLEMS WITH THE CURRENT SYSTEM FOR
     7  RESOLVING THE CLAIMS OF INDIVIDUALS WHO BELIEVE THEMSELVES TO
     8  HAVE BEEN INJURED BY THE MEDICAL NEGLIGENCE OF HEALTH CARE
     9  PROVIDERS. THOSE PROBLEMS INCLUDE, BUT ARE NOT LIMITED TO, THE
    10  FOLLOWING:
    11     (I)  THE COST OF RESOLVING THOSE MEDICAL NEGLIGENCE CLAIMS IS
    12  RAPIDLY INCREASING AND IS BECOMING AN INCREASINGLY LARGE AND
    13  IMPORTANT COMPONENT OF THE COST OF HEALTH CARE AND OF THE
    14  EXPENSES INCURRED BY HEALTH CARE PROVIDERS.
    15     (II)  THE CURRENT SYSTEM FURTHER INCREASES COSTS BY INDUCING
    16  HEALTH CARE PROVIDERS TO ENGAGE IN DEFENSIVE HEALTH CARE
    17  PRACTICES, SUCH AS THE CONDUCT OF TESTS AND PROCEDURES PRIMARILY
    18  TO PRODUCE PROTECTION AGAINST LEGAL ACTIONS.
    19     (III)  THESE COSTS ARE ULTIMATELY BORNE BY CONSUMERS OF
    20  HEALTH IN THIS COMMONWEALTH, INCREASING THE COSTS THEY MUST PAY
    21  FOR HEALTH CARE.
    22     (IV)  SANCTIONS FOR DILATORY, OBDURATE OR VEXATIOUS CONDUCT
    23  BY ATTORNEYS OR PARTIES MUST BE IMPOSED.
    24     (2)  IT IS NECESSARY TO TAKE ACTIONS TO:
    25     (I)  SEEK TO LIMIT THE COSTS OF THE PRESENT SYSTEM WHILE
    26  INCREASING ITS EFFICIENCY AND EQUITY.
    27     (II)  MAKE PROFESSIONAL LIABILITY INSURANCE AVAILABLE TO
    28  HEALTH CARE PROVIDERS AT A REASONABLE COST.
    29     SECTION 2.  SECTION 103 OF THE ACT, AMENDED JULY 15, 1976
    30  (P.L.1028, NO.207) AND NOVEMBER 6, 1985 (P.L.311, NO.78), IS
    19880H2520B3902                  - 2 -

     1  AMENDED TO READ:
     2     SECTION 103.  DEFINITIONS.--AS USED IN THIS ACT:
     3     ["ADMINISTRATOR" MEANS THE OFFICE OF ADMINISTRATOR FOR
     4  ARBITRATION PANELS FOR HEALTH CARE.
     5     "ARBITRATION PANEL" MEANS ARBITRATION PANELS FOR HEALTH
     6  CARE.]
     7     "CLAIMS MADE" MEANS A POLICY OF PROFESSIONAL LIABILITY
     8  INSURANCE THAT WOULD LIMIT OR RESTRICT THE LIABILITY OF THE
     9  INSURER UNDER THE POLICY TO ONLY THOSE CLAIMS MADE OR REPORTED
    10  DURING THE CURRENCY OF THE POLICY PERIOD AND WOULD EXCLUDE
    11  COVERAGE FOR CLAIMS REPORTED SUBSEQUENT TO THE TERMINATION EVEN
    12  WHEN SUCH CLAIMS RESULTED FROM OCCURRENCES DURING THE CURRENCY
    13  OF THE POLICY PERIOD.
    14     "COMMISSIONER" MEANS THE INSURANCE COMMISSIONER OF THIS
    15  COMMONWEALTH.
    16     "COMMITTEE" MEANS THE JOINT COMMITTEE ON PROFESSIONAL
    17  LIABILITY ESTABLISHED IN SECTION 1006.
    18     "DIRECTOR" MEANS THE DIRECTOR OF THE FUND.
    19     "FUND" MEANS THE MEDICAL PROFESSIONAL LIABILITY CATASTROPHE
    20  LOSS FUND ESTABLISHED IN ARTICLE VII.
    21     "GOVERNMENT" MEANS THE GOVERNMENT OF THE UNITED STATES, ANY
    22  STATE, ANY POLITICAL SUBDIVISION OF A STATE, ANY INSTRUMENTALITY
    23  OF ONE OR MORE STATES, OR ANY AGENCY, SUBDIVISION, OR DEPARTMENT
    24  OF ANY SUCH GOVERNMENT, INCLUDING ANY CORPORATION OR OTHER
    25  ASSOCIATION ORGANIZED BY A GOVERNMENT FOR THE EXECUTION OF A
    26  GOVERNMENT PROGRAM AND SUBJECT TO CONTROL BY A GOVERNMENT, OR
    27  ANY CORPORATION OR AGENCY ESTABLISHED UNDER AN INTERSTATE
    28  COMPACT OR INTERNATIONAL TREATY.
    29     "HEALTH CARE PROVIDER" MEANS A PRIMARY HEALTH CENTER OR A
    30  PERSON, CORPORATION, FACILITY, INSTITUTION OR OTHER ENTITY
    19880H2520B3902                  - 3 -

     1  LICENSED OR APPROVED BY THE COMMONWEALTH TO PROVIDE HEALTH CARE
     2  OR PROFESSIONAL MEDICAL SERVICES AS A [PHYSICIAN] MEDICAL
     3  DOCTOR, AN [OSTEOPATHIC PHYSICIAN OR SURGEON] OSTEOPATH, A
     4  CERTIFIED NURSE MIDWIFE, A PODIATRIST, HOSPITAL, NURSING HOME[,]
     5  OR BIRTH CENTER[, AND]. THE TERM INCLUDES, EXCEPT AS TO SECTION
     6  701(A), AN OFFICER, EMPLOYEE OR AGENT OF [ANY OF THEM] A HEALTH
     7  CARE PROVIDER ACTING IN THE COURSE AND SCOPE OF HIS EMPLOYMENT.
     8  THE TERM INCLUDES A PROFESSIONAL CORPORATION, PROFESSIONAL
     9  ASSOCIATION OR PARTNERSHIP OWNED ENTIRELY BY HEALTH CARE
    10  PROVIDERS.
    11     ["INFORMED CONSENT" MEANS FOR THE PURPOSES OF THIS ACT AND OF
    12  ANY PROCEEDINGS ARISING UNDER THE PROVISIONS OF THIS ACT, THE
    13  CONSENT OF A PATIENT TO THE PERFORMANCE OF HEALTH CARE SERVICES
    14  BY A PHYSICIAN OR PODIATRIST: PROVIDED, THAT PRIOR TO THE
    15  CONSENT HAVING BEEN GIVEN, THE PHYSICIAN OR PODIATRIST HAS
    16  INFORMED THE PATIENT OF THE NATURE OF THE PROPOSED PROCEDURE OR
    17  TREATMENT AND OF THOSE RISKS AND ALTERNATIVES TO TREATMENT OR
    18  DIAGNOSIS THAT A REASONABLE PATIENT WOULD CONSIDER MATERIAL TO
    19  THE DECISION WHETHER OR NOT TO UNDERGO TREATMENT OR DIAGNOSIS.
    20  NO PHYSICIAN OR PODIATRIST SHALL BE LIABLE FOR A FAILURE TO
    21  OBTAIN AN INFORMED CONSENT IN THE EVENT OF AN EMERGENCY WHICH
    22  PREVENTS CONSULTING THE PATIENT. NO PHYSICIAN OR PODIATRIST
    23  SHALL BE LIABLE FOR FAILURE TO OBTAIN AN INFORMED CONSENT IF IT
    24  IS ESTABLISHED BY A PREPONDERANCE OF THE EVIDENCE THAT
    25  FURNISHING THE INFORMATION IN QUESTION TO THE PATIENT WOULD HAVE
    26  RESULTED IN A SERIOUSLY ADVERSE EFFECT ON THE PATIENT OR ON THE
    27  THERAPEUTIC PROCESS TO THE MATERIAL DETRIMENT OF THE PATIENT'S
    28  HEALTH.]
    29     "LICENSURE BOARD" MEANS THE STATE BOARD OF [MEDICAL EDUCATION
    30  AND LICENSURE] MEDICINE, THE STATE BOARD OF OSTEOPATHIC
    19880H2520B3902                  - 4 -

     1  [EXAMINERS] MEDICINE, THE STATE BOARD OF PODIATRY [EXAMINERS],
     2  THE DEPARTMENT OF PUBLIC WELFARE AND THE DEPARTMENT OF HEALTH.
     3     "MALPRACTICE INSURER" MEANS AN INSURANCE COMPANY AUTHORIZED
     4  TO WRITE PROFESSIONAL LIABILITY INSURANCE FOR HEALTH CARE
     5  PROVIDERS IN THIS COMMONWEALTH, HEALTH CARE PROVIDER WHICH SELF-
     6  INSURES PROFESSIONAL LIABILITY EXPOSURE AND THE JOINT
     7  UNDERWRITING ASSOCIATION.
     8     "MEDICAL NEGLIGENCE CLAIM" MEANS A CLAIM BROUGHT BY OR ON
     9  BEHALF OF AN INDIVIDUAL SEEKING DAMAGES FOR LOSS SUSTAINED BY
    10  THE INDIVIDUAL AS A RESULT OF AN INJURY OR WRONG TO THE
    11  INDIVIDUAL OR ANOTHER INDIVIDUAL CAUSED BY A HEALTH CARE
    12  PROVIDER'S PROVISION OF, OR FAILURE TO PROVIDE, MEDICAL
    13  TREATMENT, DIAGNOSIS OR CONSULTATION.
    14     "MEDICAL SERVICE" INCLUDES, BUT IS NOT LIMITED TO:
    15     (1)  THE PROVISION OF MEDICAL TREATMENT, A DIAGNOSTIC TEST,
    16  MEDICAL CONSULTATION AND ANY SERVICE INCIDENT TO THEM; OR
    17     (2)  A DECISION, CONSULTATION, RECOMMENDATION OR OTHER ADVICE
    18  MADE AS PART OF A FORMAL PEER REVIEW PROCESS REGARDING THE
    19  QUALIFICATIONS OF A HEALTH CARE PROVIDER TO PROVIDE HEALTH CARE
    20  OR THE APPROPRIATENESS OF HEALTH CARE BY A HEALTH CARE PROVIDER,
    21  RENDERED INDIVIDUALLY OR AS A MEMBER OF A GROUP, SUCH AS A
    22  COMMITTEE PERFORMING PEER REVIEW AS DEFINED IN SECTION 2 OF THE
    23  ACT OF JULY 20, 1974 (P.L.564, NO.193), KNOWN AS THE "PEER
    24  REVIEW PROTECTION ACT."
    25     ["PATIENT" MEANS A NATURAL PERSON WHO RECEIVES OR SHOULD HAVE
    26  RECEIVED HEALTH CARE FROM A LICENSED HEALTH CARE PROVIDER.]
    27     "PRIMARY HEALTH CENTER" MEANS A COMMUNITY-BASED NONPROFIT
    28  CORPORATION MEETING STANDARDS PRESCRIBED BY THE DEPARTMENT OF
    29  HEALTH, WHICH PROVIDES PREVENTIVE, DIAGNOSTIC, THERAPEUTIC, AND
    30  BASIC EMERGENCY HEALTH CARE BY LICENSED PRACTITIONERS WHO ARE
    19880H2520B3902                  - 5 -

     1  EMPLOYEES OF THE CORPORATION OR UNDER CONTRACT TO THE
     2  CORPORATION.
     3     "PROFESSIONAL LIABILITY" MEANS LIABILITY FOR DAMAGES,
     4  ATTORNEY FEES, EXPENSES AND OTHER COST AWARDS IN A PROFESSIONAL
     5  LIABILITY ACTION.
     6     "PROFESSIONAL LIABILITY ACTION" MEANS AN ACTION ASSERTING A
     7  PROFESSIONAL LIABILITY CLAIM.
     8     "PROFESSIONAL LIABILITY CLAIM" MEANS A CLAIM ARISING OUT OF A
     9  HEALTH CARE PROVIDER'S PROVISION OF, OR FAILURE TO PROVIDE, A
    10  MEDICAL SERVICE, REGARDLESS OF THE THEORY OF LIABILITY OR CAUSE
    11  OF ACTION UPON WHICH THE CLAIM IS PREMISED.
    12     "PROFESSIONAL LIABILITY INSURANCE" MEANS INSURANCE AGAINST
    13  PROFESSIONAL LIABILITY [ON THE PART OF A HEALTH CARE PROVIDER
    14  ARISING OUT OF ANY TORT OR BREACH OF CONTRACT CAUSING INJURY OR
    15  DEATH RESULTING FROM THE FURNISHING OF MEDICAL SERVICES WHICH
    16  WERE OR SHOULD HAVE BEEN PROVIDED].
    17     SECTION 3.  ARTICLES II, III, IV, V AND VI OF THE ACT ARE
    18  REPEALED.
    19     SECTION 4.  THE ACT IS AMENDED BY ADDING ARTICLES TO READ:
    20                            ARTICLE II-A
    21                     MEDICAL NEGLIGENCE CLAIMS
    22     SECTION 201-A.  APPLICABILITY.--THIS ARTICLE APPLIES TO
    23  MEDICAL NEGLIGENCE CLAIMS ACCRUING ON OR AFTER THE EFFECTIVE
    24  DATE OF THIS ARTICLE.
    25     SECTION 202-A.  INFORMED CONSENT.--(A)  EXCEPT IN EMERGENCIES
    26  AND IN OTHER SITUATIONS AS THE COURT DEEMS APPROPRIATE, A
    27  PHYSICIAN OWES A DUTY TO A PATIENT TO OBTAIN THE PATIENT'S
    28  INFORMED CONSENT PRIOR TO PERFORMING A MAJOR INVASIVE PROCEDURE
    29  ON THE PATIENT.
    30     (B)  CONSENT IS INFORMED IF THE PATIENT HAS BEEN GIVEN A
    19880H2520B3902                  - 6 -

     1  DESCRIPTION OF THE PROCEDURE AND THE RISKS AND ALTERNATIVES THAT
     2  A REASONABLE PATIENT WOULD CONSIDER MATERIAL TO THE DECISION
     3  WHETHER OR NOT TO UNDERGO THE PROCEDURE.
     4     (C)  CONSENT TO A PROCEDURE MUST BE EXPRESS AND IN WRITING.
     5     (1)  THE FOLLOWING SHALL BE PRESUMED TO BE TRUE IF CONTAINED
     6  IN A WRITING SIGNED BY THE PATIENT:
     7     (I)  THE PATIENT CONSENTED TO A SPECIFIED PROCEDURE.
     8     (II)  THE PATIENT WAS APPRISED OF A SPECIFIED RISK OR
     9  ALTERNATIVE TO A SPECIFIED PROCEDURE.
    10     (III)  THE PATIENT WAS APPRISED OF ALL RISKS AND ALTERNATIVES
    11  TO A SPECIFIED PROCEDURE THAT A REASONABLE PATIENT WOULD
    12  CONSIDER MATERIAL TO THE DECISION WHETHER OR NOT TO UNDERGO THE
    13  PROCEDURE.
    14     (2)  THE PRESUMPTION UNDER PARAGRAPH (1) SHALL ONLY BE
    15  OVERCOME BY CLEAR AND CONVINCING EVIDENCE.
    16     (D)  NOTHING IN THIS SECTION SHALL BE CONSTRUED AS IMPOSING A
    17  DUTY ON A PHYSICIAN TO APPRISE A PATIENT OF INFORMATION:
    18     (1)  THE PATIENT KNOWS OR SHOULD KNOW;
    19     (2)  THE PATIENT HAS REQUESTED NOT TO BE REVEALED TO HIM; OR
    20     (3)  WHICH WOULD BE DETRIMENTAL FOR THE PATIENT'S HEALTH IF
    21  IT WERE TO BE KNOWN BY THE PATIENT.
    22     (E)  A PHYSICIAN SHALL NOT BE HELD TO A HIGHER DUTY TO OBTAIN
    23  A PATIENT'S CONSENT THAN PROVIDED IN THIS SECTION IN THE ABSENCE
    24  OF A WRITTEN CONTRACT WITH THE PATIENT WHICH EXPRESSLY IMPOSES
    25  THE HIGHER DUTY ON THE PHYSICIAN.
    26     (F)  IN THE CASE OF A MINOR, CONSENT TO A PROCEDURE MAY BE
    27  OBTAINED FROM A PARENT OR GUARDIAN. IN THE CASE OF A PERSON WHO
    28  HAS BEEN DECLARED INCOMPETENT PURSUANT TO 20 PA.C.S. CH. 55
    29  (RELATING TO INCOMPETENTS), CONSENT TO A PROCEDURE SHALL BE
    30  OBTAINED FROM THE COURT APPOINTED GUARDIAN. IN THE CASE OF A
    19880H2520B3902                  - 7 -

     1  PERSON BELIEVED TO BE INCOMPETENT BUT HAS NOT BEEN SO DECLARED
     2  PURSUANT TO 20 PA.C.S. CH. 55, AND WHERE A MEDICAL EMERGENCY
     3  EXISTS, CONSENT MAY BE OBTAINED FROM THE PERSON'S SPOUSE,
     4  PARENT, ADULT CHILD OR ADULT SIBLING. WHERE A MEDICAL EMERGENCY
     5  DOES NOT EXIST, CONSENT TO A PROCEDURE SHALL BE OBTAINED BY A
     6  COURT APPOINTED GUARDIAN PURSUANT TO 20 PA.C.S. CH. 55. FOR THE
     7  PURPOSES OF THIS SUBSECTION THE INFORMATION AND CONSENT UNDER
     8  SUBSECTIONS (B), (C), (D) AND (E) SHALL APPLY TO THE RELATIVE OR
     9  GUARDIAN AS REQUIRED UNDER THIS SECTION.
    10     SECTION 203-A.  STATUTE OF LIMITATIONS.--(A)  EXCEPT AS
    11  PROVIDED IN SUBSECTION (B) OR (C), AN ACTION ASSERTING A MEDICAL
    12  NEGLIGENCE CLAIM MUST BE COMMENCED WITHIN TWO YEARS OF THE DATE
    13  THE INJURED INDIVIDUAL KNEW, OR SHOULD HAVE KNOWN BY USING
    14  REASONABLE DILIGENCE, OF THE INJURY AND ITS CAUSE OR WITHIN FOUR
    15  YEARS FROM THE DATE OF THE BREACH OF DUTY OR OTHER EVENT CAUSING
    16  THE INJURY, WHICHEVER IS EARLIER.
    17     (B)  IF THE INJURY IS, OR WAS CAUSED BY, A FOREIGN OBJECT
    18  LEFT IN THE INDIVIDUAL'S BODY, THE FOUR-YEAR LIMITATION IN
    19  SUBSECTION (A) SHALL NOT APPLY.
    20     (C)  IF THE INJURED INDIVIDUAL IS A MINOR UNDER EIGHT YEARS
    21  OF AGE, THE ACTION MUST BE COMMENCED WITHIN FOUR YEARS AFTER THE
    22  MINOR'S PARENT OR GUARDIAN KNEW, OR SHOULD HAVE KNOWN BY USING
    23  REASONABLE DILIGENCE, OF THE INJURY AND ITS CAUSE OR WITHIN FOUR
    24  YEARS FROM THE MINOR'S EIGHTH BIRTHDAY, WHICHEVER IS EARLIER.
    25     (D)  IF THE CLAIM IS BROUGHT UNDER 42 PA.C.S. § 8301
    26  (RELATING TO DEATH ACTION) OR 8302 (RELATING TO SURVIVAL
    27  ACTION), THE ACTION MUST BE COMMENCED WITHIN THE TIME PERIOD SET
    28  FORTH IN SUBSECTIONS (A), (B) AND (C) OR WITHIN TWO YEARS AFTER
    29  THE DEATH, WHICHEVER IS EARLIER.
    30     (E)  NO CAUSE OF ACTION BARRED PRIOR TO THE EFFECTIVE DATE OF
    19880H2520B3902                  - 8 -

     1  THIS SECTION SHALL BE REVIVED BY REASON OF THE ENACTMENT OF THIS
     2  SECTION.
     3     (F)  IF THE BASIC COVERAGE INSURANCE CARRIER RECEIVES NOTICE
     4  OF A COMPLAINT FILED AGAINST A HEALTH CARE PROVIDER SUBJECT TO
     5  ARTICLE VII MORE THAN FOUR YEARS AFTER THE BREACH OF DUTY OR
     6  OTHER EVENT CAUSING THE INJURY OCCURRED WHICH (COMPLAINT) IS
     7  FILED WITHIN THE TIME LIMITS SET FORTH IN THIS SECTION, THE
     8  ACTION SHALL BE DEFENDED AND PAID BY THE FUND. IF THE COMPLAINT
     9  IS FILED AFTER FOUR YEARS BECAUSE OF THE WILLFUL CONCEALMENT BY
    10  THE HEALTH CARE PROVIDER OR THE PROVIDER'S BASIC COVERAGE
    11  INSURANCE CARRIER, THE FUND SHALL HAVE THE RIGHT OF FULL
    12  INDEMNITY, INCLUDING DEFENSE COSTS, FROM THE HEALTH CARE
    13  PROVIDER OR THE INSURANCE CARRIER.
    14     SECTION 204-A.  DILATORY OR FRIVOLOUS MOTIONS, CLAIMS AND
    15  DEFENSES.--(A)  ON A PLEADING, MOTION OR OTHER PAPER FILED IN AN
    16  ACTION, THE SIGNATURE OF AN ATTORNEY OR PARTY CONSTITUTES A
    17  CERTIFICATION OF ALL OF THE FOLLOWING:
    18     (1)  THE ATTORNEY OR PARTY HAS READ THE DOCUMENT THAT IS
    19  BEING SIGNED.
    20     (2)  TO THE BEST OF THE ATTORNEY'S OR PARTY'S KNOWLEDGE,
    21  INFORMATION AND BELIEF FORMED AFTER REASONABLE INQUIRY, THE
    22  DOCUMENT IS WELL GROUNDED IN FACT.
    23     (3)  CLAIMS OR DEFENSES ARE WARRANTED BY EXISTING LAW OR BY A
    24  GOOD FAITH ARGUMENT FOR THE EXTENSION, MODIFICATION OR REVERSAL
    25  OF EXISTING LAW. THIS PARAGRAPH APPLIES ONLY TO A SIGNATURE BY
    26  AN ATTORNEY.
    27     (4)  THE DOCUMENT IS NOT BEING FILED FOR PURPOSES OF DELAY OR
    28  OF NEEDLESS INCREASE IN THE COST OF THE LITIGATION.
    29     (B)  IF A PLEADING, MOTION OR OTHER PAPER FILED IN AN ACTION
    30  IS NOT SIGNED, IT SHALL BE STRICKEN UNLESS IT IS SIGNED PROMPTLY
    19880H2520B3902                  - 9 -

     1  AFTER THE OMISSION IS CALLED TO THE ATTENTION OF THE PARTY.
     2     (C)  IF A CERTIFICATION UNDER SUBSECTION (A) IS FALSE, THE
     3  COURT, UPON MOTION OR UPON ITS OWN INITIATIVE, SHALL IMPOSE UPON
     4  THE PERSON WHO SIGNED THE DOCUMENT OR A REPRESENTED PARTY, OR
     5  BOTH, AN APPROPRIATE SANCTION. A SANCTION UNDER THIS SUBSECTION
     6  MAY INCLUDE AN ORDER TO PAY TO THE OTHER PARTY THE AMOUNT OF THE
     7  REASONABLE EXPENSES INCURRED BECAUSE OF THE FILING, INCLUDING A
     8  REASONABLE ATTORNEY FEE.
     9     Section 104 205-A.  Expert Witnesses.--In a claim against a    <--
    10  health care provider who is a board-certified specialist and in
    11  which expert testimony is required, a person who is not board-
    12  certified in the same health care specialty shall not be
    13  permitted to testify as an expert unless:
    14     (1)  the arbitration panel or court determines that the
    15  person is duly licensed and is engaged in the practice or
    16  teaching of the same health care specialty; or
    17     (2)  the arbitration panel or court, with respect to a person
    18  offered as an expert who is not a licensed health care provider
    19  or is not engaged in the practice or teaching of the same health
    20  care specialty, determines that the person, by virtue of
    21  education, training and experience, possesses special knowledge
    22  concerning the subject matter of the issue or issues for which
    23  the testimony of the witness is being offered.
    24     Section 2.  This act shall take effect in 60 days.             <--
    25     SECTION 206-A.  AFFIDAVIT OF NON-INVOLVEMENT.--THE COURT       <--
    26  SHALL DISMISS WITHOUT PREJUDICE A DEFENDANT PHYSICIAN WHO FILES
    27  WITH THE COURT AN AFFIDAVIT VERIFYING THAT THE PHYSICIAN DID NOT
    28  TREAT THE PATIENT, DOES NOT EMPLOY A PERSON WHO TREATED THE
    29  PATIENT, AND DID NOT SUPERVISE A PERSON WHILE THAT PERSON WAS
    30  ENGAGED IN THE TREATMENT OF THE PATIENT.
    19880H2520B3902                 - 10 -

     1     SECTION 207-A.  PUNITIVE DAMAGES.--(A)  PUNITIVE DAMAGES MAY
     2  BE AWARDED OVER AND ABOVE COMPENSATORY DAMAGES ONLY WHERE THERE
     3  IS A SHOWING, BY CLEAR AND CONVINCING EVIDENCE, THAT THE TORT-
     4  FEASOR'S CONDUCT WAS OUTRAGEOUS BECAUSE:
     5     (1)  THE TORT-FEASOR ACTED WITH AN EVIL MOTIVE; OR
     6     (2)  THE TORT-FEASOR KNEW OR HAD REASON TO KNOW OF FACTS
     7  CREATING A HIGH DEGREE OF RISK OF PHYSICAL HARM TO ANOTHER
     8  PERSON AND ACTED OR FAILED TO ACT IN CONSCIOUS DISREGARD OF OR
     9  INDIFFERENCE TO THE RISK.
    10     (B)  A SHOWING OF GROSS NEGLIGENCE IS INSUFFICIENT TO SUPPORT
    11  AN AWARD OF PUNITIVE DAMAGES.
    12     (C)  PUNITIVE DAMAGES SHALL NOT EXCEED 200% OF THE
    13  COMPENSATORY DAMAGES AWARDED.
    14                           ARTICLE III-A
    15                        MANDATORY REPORTING
    16     SECTION 301-A.  REPORTING BY MALPRACTICE INSURERS AND THE
    17  DIRECTOR OF THE FUND.--MALPRACTICE INSURERS SHALL REPORT TO THE
    18  APPROPRIATE STATE BOARD EACH HEALTH CARE PROVIDER OF THAT BOARD
    19  ON BEHALF OF WHOM A SETTLEMENT, AWARD OR JUDGMENT HAS BEEN MADE
    20  OR ENTERED ON OR AFTER THE EFFECTIVE DATE OF THIS ARTICLE IF THE
    21  MALPRACTICE INSURER OF THE FUND IS LIABLE IN AN AMOUNT IN EXCESS
    22  OF $200,000. EACH REPORT SHALL INCLUDE THE NAME, ADDRESS AND
    23  LICENSE, CERTIFICATE OR REGISTRATION NUMBER OF THE HEALTH CARE
    24  PROVIDER WHO IS THE SUBJECT OF THE REPORT AND A SUMMARY OF THE
    25  CASE. EACH REPORT SHALL BE SUBMITTED WITHIN 30 DAYS OF THE
    26  SETTLEMENT, AWARD OR JUDGMENT. THE INSURANCE DEPARTMENT SHALL
    27  MONITOR AND ENFORCE COMPLIANCE WITH THIS SECTION. THE BUREAU OF
    28  PROFESSIONAL AND OCCUPATIONAL AFFAIRS AND THE PROFESSIONAL
    29  LICENSURE BOARDS SHALL HAVE ACCESS TO INFORMATION PERTAINING TO
    30  COMPLIANCE.
    19880H2520B3902                 - 11 -

     1     SECTION 302-A.  IMMUNITY FOR REPORTING.--A MALPRACTICE
     2  INSURER OR PERSON WHO REPORTS UNDER SECTION 301-A IN GOOD FAITH
     3  AND WITHOUT MALICE SHALL BE IMMUNE FROM A CIVIL OR CRIMINAL
     4  LIABILITY ARISING FROM THE REPORT.
     5     SECTION 303-A.  ACTION BY PROFESSIONAL LICENSURE BOARDS.--
     6  UPON RECEIPT OF A REPORT UNDER SECTION 301-A, THE APPROPRIATE
     7  PROFESSIONAL LICENSURE BOARD AND THE BUREAU OF PROFESSIONAL AND
     8  OCCUPATIONAL AFFAIRS SHALL REVIEW THE REPORT AND CONDUCT AN
     9  INVESTIGATION. IF THE INFORMATION OBTAINED THROUGH THE
    10  INVESTIGATION WARRANTS, THE BOARD SHALL PROMPTLY INITIATE A
    11  DISCIPLINARY PROCEEDING AGAINST THE HEALTH CARE PROVIDER.
    12  INFORMATION RECEIVED UNDER THIS ARTICLE SHALL NOT BE CONSIDERED
    13  PUBLIC INFORMATION FOR THE PURPOSES OF THE ACT OF JUNE 21, 1957
    14  (P.L.390, NO.212), REFERRED TO AS THE "RIGHT-TO-KNOW LAW," AND
    15  THE ACT OF JULY 3, 1986 (P.L.388, NO.84), KNOWN AS THE "SUNSHINE
    16  ACT," UNTIL USED IN A FORMAL DISCIPLINARY PROCEEDING.
    17     SECTION 304-A.  ANNUAL REPORTS TO GENERAL ASSEMBLY.--EACH
    18  PROFESSIONAL LICENSURE BOARD SHALL SUBMIT ANNUALLY A REPORT TO
    19  THE PROFESSIONAL LICENSURE COMMITTEE OF THE HOUSE OF
    20  REPRESENTATIVES AND THE CONSUMER PROTECTION AND PROFESSIONAL
    21  LICENSURE COMMITTEE OF THE SENATE. THE REPORT SHALL CONTAIN THE
    22  NUMBER OF REPORTS RECEIVED UNDER SECTION 301-A, THE STATUS OF
    23  THE INVESTIGATIONS OF THOSE REPORTS, A DISCIPLINARY ACTION WHICH
    24  HAS BEEN TAKEN AND THE LENGTH OF TIME FROM RECEIPT OF EACH
    25  REPORT TO FINAL BOARD ACTION.
    26     SECTION 5.  THE HEADING OF ARTICLE VII OF THE ACT IS AMENDED
    27  TO READ:
    28                            ARTICLE VII
    29       [MEDICAL PROFESSIONAL LIABILITY CATASTROPHE LOSS FUND]
    30                  PROFESSIONAL LIABILITY INSURANCE
    19880H2520B3902                 - 12 -

     1     SECTION 6.  SECTION 701(A)(1) AND (3) AND (D) OF THE ACT,
     2  AMENDED OCTOBER 15, 1980 (P.L.971, NO.165), ARE AMENDED AND THE
     3  SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
     4     SECTION 701.  PROFESSIONAL LIABILITY INSURANCE AND FUND.--(A)
     5  EVERY HEALTH CARE PROVIDER [AS DEFINED IN THIS ACT, PRACTICING
     6  MEDICINE OR PODIATRY OR OTHERWISE PROVIDING HEALTH CARE SERVICES
     7  IN THE COMMONWEALTH] SHALL INSURE HIS PROFESSIONAL LIABILITY
     8  [ONLY] WITH AN INSURER LICENSED OR APPROVED BY THE COMMONWEALTH
     9  OF PENNSYLVANIA, OR PROVIDE PROOF OF SELF-INSURANCE IN
    10  ACCORDANCE WITH THIS SECTION.
    11     (1)  [(I)]  A HEALTH CARE PROVIDER, OTHER THAN HOSPITALS, WHO
    12  CONDUCTS MORE THAN 50% OF HIS HEALTH CARE BUSINESS OR PRACTICE
    13  WITHIN THE COMMONWEALTH OF PENNSYLVANIA SHALL INSURE OR SELF-
    14  INSURE HIS PROFESSIONAL LIABILITY IN THE AMOUNT OF [$100,000]
    15  $200,000 PER OCCURRENCE AND [$300,000] $600,000 PER ANNUAL
    16  AGGREGATE, AND HOSPITALS LOCATED IN THE COMMONWEALTH SHALL
    17  INSURE OR SELF-INSURE THEIR PROFESSIONAL LIABILITY IN THE AMOUNT
    18  OF [$100,000] $200,000 PER OCCURRENCE, AND $1,000,000 PER ANNUAL
    19  AGGREGATE, HEREINAFTER KNOWN AS "BASIC COVERAGE INSURANCE" AND
    20  THEY SHALL BE ENTITLED TO PARTICIPATE IN THE FUND. [IN THE EVENT
    21  THAT AMOUNTS WHICH SHALL BECOME PAYABLE BY THE FUND SHALL EXCEED
    22  THE AMOUNT OF $20,000,000 IN ANY YEAR FOLLOWING CALENDAR YEAR
    23  1980, BASIC COVERAGE INSURANCE COMMENCING IN THE ENSUING YEAR
    24  SHALL BECOME $150,000 PER OCCURRENCE AND $450,000 PER ANNUAL
    25  AGGREGATE FOR HEALTH CARE PROVIDERS OTHER THAN HOSPITALS FOR
    26  WHICH BASIC COVERAGE INSURANCE SHALL BECOME $150,000 PER
    27  OCCURRENCE AND $1,000,000 PER ANNUAL AGGREGATE.
    28     (II)  IN THE EVENT THAT AMOUNTS WHICH SHALL BECOME PAYABLE BY
    29  THE FUND SHALL EXCEED THE AMOUNT OF $30,000,000 IN ANY YEAR
    30  FOLLOWING CALENDAR YEAR 1982, BASIC COVERAGE INSURANCE
    19880H2520B3902                 - 13 -

     1  COMMENCING IN THE ENSUING YEAR SHALL BECOME $200,000 PER
     2  OCCURRENCE AND $600,000 PER ANNUAL AGGREGATE FOR HEALTH CARE
     3  PROVIDERS OTHER THAN HOSPITALS FOR WHICH BASIC COVERAGE
     4  INSURANCE SHALL BECOME $200,000 PER OCCURRENCE AND $1,000,000
     5  PER ANNUAL AGGREGATE.]
     6     * * *
     7     (3)  FOR THE PURPOSES OF THIS SECTION, "HEALTH CARE BUSINESS
     8  OR PRACTICE" SHALL MEAN THE NUMBER OF PATIENTS TO WHOM [HEALTH
     9  CARE] MEDICAL SERVICES ARE RENDERED BY A HEALTH CARE PROVIDER
    10  WITHIN AN ANNUAL PERIOD.
    11     * * *
    12     (D)  THERE IS HEREBY CREATED A CONTINGENCY FUND FOR THE
    13  PURPOSE OF PAYING ALL COSTS OF OPERATION OF THE FUND AND ALL
    14  AWARDS, JUDGMENTS AND SETTLEMENTS FOR LOSS OR DAMAGES AGAINST A
    15  HEALTH CARE PROVIDER ENTITLED TO PARTICIPATE IN THE FUND AS A
    16  CONSEQUENCE OF ANY CLAIM FOR PROFESSIONAL LIABILITY BROUGHT
    17  AGAINST SUCH HEALTH CARE PROVIDER AS A DEFENDANT OR AN
    18  ADDITIONAL DEFENDANT TO THE EXTENT SUCH HEALTH CARE PROVIDER'S
    19  SHARE EXCEEDS HIS BASIC COVERAGE INSURANCE [IN EFFECT AT THE
    20  TIME OF OCCURRENCE] AS PROVIDED IN SUBSECTION (A)(1). SUCH FUND
    21  SHALL BE KNOWN AS THE "MEDICAL PROFESSIONAL LIABILITY
    22  CATASTROPHE LOSS FUND," IN THIS ARTICLE VII CALLED THE "FUND."
    23  THE LIMIT OF LIABILITY OF THE FUND SHALL BE $1,000,000 FOR EACH
    24  OCCURRENCE FOR EACH HEALTH CARE PROVIDER AND $3,000,000 PER
    25  ANNUAL AGGREGATE FOR EACH HEALTH CARE PROVIDER.
    26     * * *
    27     (I)  THE BASIC COVERAGE CARRIER IS SOLELY RESPONSIBLE FOR
    28  TOTAL INVESTIGATION, DEFENSE AND SETTLEMENT OF THE CLAIM. THE
    29  FUND IS OBLIGATED TO MAKE PAYMENT AS DIRECTED BY THE BASIC
    30  COVERAGE CARRIER UP TO THE FUND'S LIMITS OF LIABILITY OF
    19880H2520B3902                 - 14 -

     1  $1,000,000 PER HEALTH CARE PROVIDER. IF A HEALTH CARE LIABILITY
     2  CLAIM IS MADE AGAINST A HEALTH CARE PROVIDER MORE THAN FOUR
     3  YEARS AFTER THE OCCURRENCE ON WHICH THE CLAIM IS BASED, THE
     4  CLAIM SHALL BE DEFENDED AND PAID IN ITS ENTIRETY BY THE FUND.
     5     SECTION 7.  SECTION 702(C), (D), (E) AND (F) OF THE ACT ARE
     6  REPEALED.
     7     SECTION 8.  SECTIONS 702(H) AND 1001 OF THE ACT ARE AMENDED
     8  TO READ:
     9     SECTION 702.  DIRECTOR AND ADMINISTRATION OF FUND.--* * *
    10     (H)  NOTHING IN THIS ACT SHALL PRECLUDE THE DIRECTOR FROM
    11  ADJUSTING OR PAYING FOR THE ADJUSTMENT OF CLAIMS UNDER SECTION
    12  203-A(F).
    13     SECTION 1001.  IMMUNITY FROM LIABILITY FOR OFFICIAL
    14  ACTIONS.--THERE SHALL BE NO LIABILITY ON THE PART OF AND NO
    15  CAUSE OF ACTION FOR LIBEL OR SLANDER SHALL ARISE AGAINST ANY
    16  MEMBER INSURER, THE STATE BOARD OF [MEDICAL EDUCATION AND
    17  LICENSURE] MEDICINE, THE STATE BOARD OF OSTEOPATHIC [EXAMINERS]
    18  MEDICINE, THE STATE BOARD OF PODIATRY [EXAMINERS, THE
    19  ARBITRATION PANELS, THE ADMINISTRATOR], THE DIRECTOR OR THE
    20  COMMISSIONER OR HIS REPRESENTATIVES FOR ANY ACTION TAKEN BY ANY
    21  OF THEM IN THE PERFORMANCE OF THEIR RESPECTIVE POWERS AND DUTIES
    22  UNDER THIS ACT.
    23     SECTION 9.  SECTION 1005 OF THE ACT IS REPEALED.
    24     SECTION 10.  SECTION 1006 OF THE ACT, AMENDED NOVEMBER 26,
    25  1978 (P.L.1324, NO.320), IS AMENDED TO READ:
    26     SECTION 1006.  [JOINT] COMMITTEE.--[THERE IS HEREBY CREATED A
    27  COMMITTEE TO CONSIST OF THE COMMISSIONER AS CHAIRMAN, THE
    28  SECRETARY OF HEALTH AND TWO MEMBERS OF THE SENATE, ONE MEMBER OF
    29  EACH PARTY, TO BE APPOINTED BY THE PRESIDENT PRO TEMPORE AND TWO
    30  MEMBERS OF THE HOUSE OF REPRESENTATIVES, ONE MEMBER OF EACH
    19880H2520B3902                 - 15 -

     1  PARTY, TO BE APPOINTED BY THE SPEAKER OF THE HOUSE OF
     2  REPRESENTATIVES. THE COMMITTEE SHALL STUDY THE DISTRIBUTION OF
     3  PROFESSIONAL LIABILITY INSURANCE COSTS AS AMONG THE VARIOUS
     4  CLASSES OF PHYSICIANS AND HEALTH CARE PROVIDERS AND SHALL REPORT
     5  ITS FINDINGS AND RECOMMENDATIONS TO THE GENERAL ASSEMBLY WITHIN
     6  ONE YEAR OF THE EFFECTIVE DATE OF THIS ACT. THE COMMITTEE SHALL
     7  ALSO STUDY ALL PHASES AND THE FINANCIAL IMPACT OF THE OPERATIONS
     8  OF THE MEDICAL PROFESSIONAL LIABILITY CATASTROPHE LOSS FUND AND
     9  SHALL REPORT ITS FINDINGS AND RECOMMENDATIONS TO THE GENERAL
    10  ASSEMBLY ON OR BEFORE JULY 1, 1977. THIS COMMITTEE SHALL ALSO
    11  STUDY ACTUAL OR POTENTIAL PROBLEMS OF CONFLICTS OF INTEREST
    12  WHICH EXIST OR MAY EXIST AMONG MEMBERS OF THE ARBITRATION PANEL
    13  WITH EACH OTHER AND WITH OTHER PERSONS APPEARING BEFORE THE
    14  ARBITRATION PANEL OR HAVING THEIR INTERESTS REPRESENTED BEFORE
    15  THE ARBITRATION PANEL. THE COMMITTEE SHALL PROMULGATE A PROPOSED
    16  CODE OF ETHICS WITH SUGGESTED LEGAL SANCTIONS TO DEAL WITH ANY
    17  VIOLATORS OF THE CODE OF ETHICS ON OR BEFORE JULY 1, 1976. THIS
    18  COMMITTEE SHALL STUDY THE ACT, ITS APPLICATION AND OPERATION TO
    19  DETERMINE IF ANY CHANGES IN THE PRESENT ACT ARE NECESSARY OR
    20  ADVISABLE. THIS STUDY SHALL INCLUDE CONSIDERATION OF THE
    21  ADVISABILITY AND POTENTIAL EFFECT OF THE APPLICATION OF THE ACT
    22  TO MENTAL HEALTH/MENTAL RETARDATION FACILITIES. THE COMMITTEE
    23  SHALL REPORT ON THIS STUDY ON OR BEFORE JULY 1, 1979 AND EACH
    24  YEAR THEREAFTER.] (A)  THERE IS ESTABLISHED THE JOINT COMMITTEE
    25  ON PROFESSIONAL LIABILITY. THE COMMITTEE SHALL CONSIST OF TWO
    26  MEMBERS OF THE SENATE APPOINTED BY THE PRESIDENT PRO TEMPORE,
    27  ONE FROM THE MAJORITY PARTY AND ONE FROM THE MINORITY PARTY; TWO
    28  MEMBERS OF THE HOUSE OF REPRESENTATIVES, APPOINTED BY THE
    29  SPEAKER OF THE HOUSE, ONE FROM THE MAJORITY PARTY AND ONE FROM
    30  THE MINORITY PARTY; THE COMMISSIONER; THE SECRETARY OF HEALTH;
    19880H2520B3902                 - 16 -

     1  THE DIRECTOR; AND NINE NONVOTING ADVISORY MEMBERS. THE
     2  LEGISLATIVE MEMBERS SHALL SELECT A CHAIRMAN FROM AMONG THEIR
     3  NUMBER. LEGISLATIVE MEMBERS SHALL BE APPOINTED OR REAPPOINTED
     4  DURING EACH REGULAR SESSION OF THE GENERAL ASSEMBLY AND SHALL
     5  CONTINUE AS MEMBERS UNTIL THE FIRST TUESDAY IN JANUARY OF THE
     6  NEXT ODD-NUMBERED YEAR AND UNTIL THEIR RESPECTIVE SUCCESSORS
     7  SHALL BE APPOINTED, PROVIDED THEY CONTINUE TO BE MEMBERS OF THE
     8  SENATE OR THE HOUSE OF REPRESENTATIVES. THE TERM OF OFFICE OF
     9  THOSE COMMITTEE MEMBERS WHO DO NOT CONTINUE TO BE MEMBERS OF THE
    10  SENATE OR THE HOUSE OF REPRESENTATIVES SHALL CEASE UPON THE
    11  CONVENING OF THE NEXT REGULAR SESSION OF THE GENERAL ASSEMBLY
    12  AFTER THEIR APPOINTMENT. THE NONLEGISLATIVE MEMBERS SHALL SERVE
    13  A TERM ON THE COMMITTEE COTERMINOUS WITH THE OFFICE WHICH THEY
    14  HOLD. NONLEGISLATIVE MEMBERS SHALL NOT HAVE A VOTE ON THE
    15  COMMITTEE. THE COMMITTEE SHALL HAVE A CONTINUING EXISTENCE AND
    16  MAY MEET AND CONDUCT ITS BUSINESS AT ANY PLACE WITHIN THIS
    17  COMMONWEALTH DURING THE SESSIONS OF THE GENERAL ASSEMBLY OR ANY
    18  RECESS AND IN THE INTERIM BETWEEN SESSIONS.
    19     (B)  THE CHAIRMAN SHALL APPOINT NINE NONVOTING ADVISORY
    20  MEMBERS: THREE ATTORNEYS-AT-LAW WHO, FOR A PERIOD OF AT LEAST
    21  FIVE YEARS IMMEDIATELY PRIOR TO THEIR APPOINTMENT HAVE BEEN
    22  PRINCIPALLY ENGAGED IN THE REPRESENTATION OF PLAINTIFFS
    23  GENERALLY AND PATIENTS IN PROFESSIONAL LIABILITY CLAIMS; ONE
    24  MEMBER FROM A LIST SUBMITTED BY THE PENNSYLVANIA MEDICAL
    25  SOCIETY, ONE MEMBER FROM A LIST SUBMITTED BY THE HOSPITAL
    26  ASSOCIATION OF PENNSYLVANIA AND ONE MEMBER WHO HAS NATIONAL
    27  RECOGNITION IN THE FIELD OF PROFESSIONAL LIABILITY; AND THREE
    28  HEALTH CARE PROVIDERS WHO, FOR A PERIOD OF FIVE YEARS
    29  IMMEDIATELY PRIOR TO THEIR APPOINTMENT HAVE BEEN PRINCIPALLY
    30  ENGAGED IN PROVIDING HEALTH CARE. THE TERMS OF ADVISORY MEMBERS
    19880H2520B3902                 - 17 -

     1  SHALL CONTINUE UNTIL THE FIRST TUESDAY IN JANUARY IN ODD-
     2  NUMBERED YEARS AND UNTIL THEIR RESPECTIVE SUCCESSORS ARE
     3  APPOINTED.
     4     (C)  THE MEMBERS OF THE COMMITTEE SHALL SERVE WITHOUT
     5  COMPENSATION.
     6     SECTION 11.  THE ACT IS AMENDED BY ADDING SECTIONS TO READ:
     7     SECTION 1006.1.  DUTIES OF THE COMMITTEE.--THE COMMITTEE
     8  SHALL STUDY THE DISTRIBUTION OF PROFESSIONAL LIABILITY INSURANCE
     9  COSTS AMONG THE VARIOUS CLASSES OF PHYSICIANS AND HEALTH CARE
    10  PROVIDERS IN THIS COMMONWEALTH ALONG WITH ALL PHASES AND THE
    11  FINANCIAL IMPACT OF THE OPERATION OF THE FUND. THE COMMITTEE
    12  SHALL ALSO STUDY THE PROVISIONS OF THIS ACT, ITS APPLICATION AND
    13  OPERATION TO DETERMINE IF CHANGES IN THE ACT ARE NECESSARY OR
    14  ADVISABLE. THIS STUDY SHALL INCLUDE CONSIDERATION OF THE
    15  ADVISABILITY AND POTENTIAL EFFECT OF THE APPLICATION OF THE ACT
    16  TO MENTAL HEALTH/MENTAL RETARDATION FACILITIES. THE COMMITTEE
    17  SHALL MAKE A REPORT OF ITS STUDIES AND FINDINGS TO THE GENERAL
    18  ASSEMBLY EACH YEAR.
    19     SECTION 1006.2.  TECHNICAL ASSISTANCE.--(A)  THE COMMITTEE
    20  MAY CALL UPON THE DIRECTOR, THE BANKING AND INSURANCE COMMITTEE
    21  AND THE PUBLIC HEALTH AND WELFARE COMMITTEE OF THE SENATE AND
    22  THE INSURANCE COMMITTEE AND HEALTH AND WELFARE COMMITTEE OF THE
    23  HOUSE OF REPRESENTATIVES FOR ASSISTANCE. THE MEMBERS OF THE
    24  COMMITTEE SHALL SERVE WITHOUT COMPENSATION.
    25     SECTION 1006.3.  SUBCOMMITTEE.--THE COMMITTEE SHALL APPOINT A
    26  SUBCOMMITTEE TO SPECIFICALLY STUDY THE DISTRIBUTION OF
    27  PROFESSIONAL LIABILITY INSURANCE COSTS AMONG THE VARIOUS CLASSES
    28  OF PHYSICIANS AND HEALTH CARE PROVIDERS IN THIS COMMONWEALTH
    29  ALONG WITH ALL PHASES AND THE FINANCIAL IMPACT OF THE OPERATION
    30  OF THE FUND. THE SUBCOMMITTEE SHALL BE APPOINTED TO INCLUDE
    19880H2520B3902                 - 18 -

     1  REPRESENTATIVES OF THE LEGAL PROFESSION REPRESENTING BOTH
     2  PLAINTIFFS AND DEFENDANTS, THE MEDICAL PROFESSION, THE INSURANCE
     3  INDUSTRY AND THE ACTUARIAL PROFESSION. THE SUBCOMMITTEE SHALL BE
     4  CHARGED WITH PERFORMING AN IN-DEPTH STUDY OF CURRENT
     5  PENNSYLVANIA PROFESSIONAL LIABILITY INSURANCE PRACTICES IN ORDER
     6  TO DETERMINE THEIR FAIRNESS AND EQUITY AND THE SUBCOMMITTEE
     7  SHALL REPORT THESE RECOMMENDATIONS TO THE COMMITTEE, WHICH SHALL
     8  IN TURN REPORT THE FINDINGS TO THE GENERAL ASSEMBLY.
     9     (B)  THE SUBCOMMITTEE SHALL CONSIST OF ONE MEMBER
    10  REPRESENTING THE MEDICAL COMMUNITY, ONE MEMBER REPRESENTING
    11  HOSPITAL ADMINISTRATION, ONE MEMBER REPRESENTING THE TRIAL BAR,
    12  ONE MEMBER REPRESENTING THE DEFENSE BAR, ONE MEMBER REPRESENTING
    13  THE INSURANCE FEDERATION OF PENNSYLVANIA, ACTUARIAL EXPERTS AS
    14  NEEDED AND THOSE MEMBERS OF THE COMMITTEE WHO ELECT TO
    15  PARTICIPATE EX OFFICIO.
    16     (C)  THE MEMBERS OF THIS SUBCOMMITTEE SHALL SERVE WITHOUT
    17  COMPENSATION; BUT, AT THEIR OPTION, THEY SHALL RECEIVE A PER
    18  DIEM ALLOWANCE ESTABLISHED BY THE COMMITTEE AND PAYABLE FROM
    19  GENERAL TAX REVENUE, OR THEY SHALL BE REIMBURSED BY THE
    20  COMMITTEE FROM THE SAME SOURCES FOR ACTUAL AND NECESSARY
    21  EXPENSES NOT EXCEEDING THE PER DIEM ALLOWANCE INCURRED WHILE
    22  ATTENDING SESSIONS OF THE SUBCOMMITTEE OR WHILE ENGAGED ON OTHER
    23  COMMITTEE BUSINESS AUTHORIZED BY THE COMMITTEE.
    24     SECTION 12.  SECTION 1007.1 OF THE ACT IS REPEALED.
    25     SECTION 13.  (A)  THE ACT OF DECEMBER 18, 1984 (P.L.1068,
    26  NO.213), ENTITLED, AS AMENDED "AN ACT REQUIRING PHYSICIANS TO
    27  OBTAIN INFORMED CONSENT FROM PATIENTS FOR TREATMENT OF BREAST
    28  DISEASE," IS REPEALED.
    29     (B)  ALL OTHER ACTS AND PARTS OF ACTS ARE REPEALED INSOFAR AS
    30  THEY ARE INCONSISTENT WITH THIS ACT.
    19880H2520B3902                 - 19 -

     1     SECTION 14.  THIS ACT SHALL TAKE EFFECT IN 60 DAYS.




















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