PRINTER'S NO. 1313

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1155 Session of 1991


        INTRODUCED BY COLAFELLA, RICHARDSON, TRELLO, DALEY, NOYE, PESCI,
           HALUSKA, ACOSTA, HAYDEN, JOHNSON, CIVERA, E. Z. TAYLOR,
           SURRA, BISHOP AND LESCOVITZ, APRIL 16, 1991

        REFERRED TO COMMITTEE ON HEALTH AND WELFARE, APRIL 16, 1991

                                     AN ACT

     1  Providing for indemnification of the cost of legal defense to
     2     health care providers for health care reporting requirements.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5  Section 1.  Short title.
     6     This act shall be known and may be cited as the Health Care
     7  Providers Immunity Defense Act.
     8  Section 2.  Legislative findings and intent.
     9     (a)  Findings.--The General Assembly finds and declares as
    10  follows:
    11         (1)  The General Assembly has, over the years, imposed on
    12     health care providers many special duties of reporting facts
    13     learned in the performance of their profession to
    14     departments, agencies, boards or commissions created by or as
    15     part of State government.
    16         (2)  In some of these instances, the General Assembly has
    17     enacted immunity statutes granting immunity to health care


     1     providers for complying with this statutorily imposed duty,
     2     and, in other instances, no immunity has been legislatively
     3     granted.
     4         (3)  In some instances, where no immunity statutes have
     5     been enacted, absolute or qualified immunity has been granted
     6     by judicial decision.
     7         (4)  Many of the immunity statutes have been qualified by
     8     such limitations as applicability only to criminal or civil
     9     cases, limitation to defamation and the requirement that
    10     reports be made in good faith or without malice.
    11         (5)  Despite the grants of immunity, health care
    12     providers have been subjected to lawsuits in the past,
    13     potentially face lawsuits in the future and have been
    14     responsible for the costs of defense, including the payment
    15     of legal fees, even when they have been successful in defense
    16     because of their immunity.
    17         (6)  It is unfair to require health care providers to
    18     make reports of facts learned in their professional capacity
    19     yet not provide for payment of the costs of legal
    20     representation if they are subjected to lawsuits for making
    21     these reports.
    22     (b)  Intent.--It is the intent of the General Assembly that
    23  the Commonwealth indemnify health care providers when they are
    24  sued for reporting requirements which are statutorily imposed
    25  and to provide for the award of reasonable attorney fees to such
    26  health care providers in the event of a successful defense.
    27  Section 3.  Definitions.
    28     The following words and phrases when used in this act shall
    29  have the meanings given to them in this section unless the
    30  context clearly indicates otherwise:
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     1     "Health care provider."  A person licensed by the
     2  Commonwealth to provide health care or professional medical
     3  services as a physician, an osteopathic physician or surgeon, a
     4  podiatrist and an employee or agent of any of them acting in the
     5  course and scope of employment.
     6     "Indemnify."  To restore the defendant who is the victim of a
     7  loss because of the cost of counsel fees by payment of an amount
     8  equal to such costs.
     9     "Reporting requirements."  Statutes enacted by the General
    10  Assembly which require or permit persons to make reports
    11  concerning health care to departments, agencies, boards or
    12  commissions created by or as part of State government.
    13     "Statutes requiring reports and granting immunity."  Statutes
    14  enacted by the General Assembly which both require or permit
    15  persons to make reports concerning health care and grant
    16  immunity for making such reports.
    17  Section 4.  Defense of suits.
    18     When an action is brought against a health care provider for
    19  an act or acts performed by a health care provider in accordance
    20  with reporting requirements or statutes requiring reports and
    21  granting immunity, the following shall apply:
    22         (1)  If the defendant finally and completely prevails,
    23     the defendant shall be allowed a reasonable attorney fee to
    24     be taxed and collected as a part of the costs of the suit.
    25         (2)  If the defendant makes a reasonable effort to
    26     collect such costs and they have not been paid by the
    27     unsuccessful plaintiff or the defendant's insurer, the
    28     Commonwealth shall indemnify the prevailing defendant and all
    29     funds required for such indemnification are hereby
    30     specifically appropriated from the restricted receipts
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     1     account of the State Board of Medicine, the restricted
     2     receipts account of the State Board of Osteopathic Medicine
     3     and the restricted receipts account of the State Board of
     4     Podiatry.
     5         (3)  If a reasonable attorney fee is not paid by the
     6     unsuccessful plaintiff, and the Commonwealth has paid such
     7     fee to the prevailing defendant pursuant to this section, the
     8     Commonwealth shall have a cause of action against the
     9     unsuccessful plaintiff to recover its indemnity payment.
    10         (4)  If an indemnity payment is recovered from an
    11     unsuccessful plaintiff by the Commonwealth, it shall be paid
    12     into the restricted receipts account of the State Board of
    13     Medicine, the restricted receipts account of the State Board
    14     of Osteopathic Medicine or the restricted receipts account of
    15     the State Board of Podiatry.
    16  Section 5.  Effective date.
    17     This act shall take effect immediately.









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