HOUSE AMENDED
        PRIOR PRINTER'S NOS. 944, 1022                PRINTER'S NO. 1085

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 846 Session of 1979


        INTRODUCED BY HANKINS AND HAGER, JUNE 20, 1979

        AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF
           REPRESENTATIVES, AS AMENDED, SEPTEMBER 17, 1979

                                     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     arbitration panels for health care.

    10     The General Assembly of the Commonwealth of Pennsylvania
    11  hereby enacts as follows:
    12     Section 1.  Section 308, act of October 15, 1975 (P.L.390,
    13  No.111), known as the "Health Care Services Malpractice Act,"
    14  subsection (b) amended July 15, 1976 (P.L.1028, No.207), is
    15  amended to read:
    16     Section 308.  Arbitration Panels for Health Care.--[(a)  The
    17  administrator shall establish a separate arbitration panel for
    18  each claim; and after each panel renders its decision on the
    19  claim it shall be disbanded.
    20     (b)  Each arbitration panel shall be composed of seven
    21  members including two health care providers, two attorneys, one

     1  of whom shall be designated as chairman by the administrator,
     2  who shall determine questions of law and three lay persons who
     3  are not health care providers nor licensed to practice law.
     4  Wherever possible, the administrator shall select a hospital
     5  administrator, podiatrist, or osteopathic physician or surgeon
     6  as one of the health care provider panel members where the claim
     7  involves a member of one of those classes of health care
     8  providers.
     9     (c)  Arbitration panel candidates shall be selected from a
    10  pool of candidates generated by the administrator. The rules and
    11  regulations promulgated by the administrator pertaining to the
    12  selection of arbitrators shall provide that the administrator
    13  shall send simultaneously to each party an identical list of
    14  five arbitration panel candidates in each of the three
    15  categories together with a brief biographical statement on each
    16  candidate. A party may strike from the list any two names which
    17  are unacceptable in each category. Any mutually agreeable
    18  candidate may be invited by the administrator to serve. Where
    19  insufficient mutually agreeable candidates are selected for any
    20  category a second list of that category shall be sent by the
    21  administrator. If a complete arbitration panel is not selected
    22  by mutual agreement of the parties the administrator shall
    23  appoint the remainder of the arbitration panel. Any appointment
    24  by the administrator shall be subject to challenge by any party
    25  for cause. A request to strike an arbitrator for cause shall be
    26  determined by the administrator. The parties shall not be
    27  restricted to the arbitration panel candidates submitted for
    28  consideration; but, if all parties mutually agree upon an
    29  arbitration panelist within a designated category, the panelist
    30  shall be invited to serve.
    19790S0846B1085                  - 2 -

     1     (d)  The attorney and health care provider members of each
     2  arbitration panel shall be or have been practicing members of
     3  their respective professions.
     4     (e)  Arbitration panel members shall be paid on a per diem or
     5  salary basis as fixed by the Executive Board plus actual and
     6  necessary expenses incurred in the performance of their official
     7  duties. The administrator shall provide for all other necessary
     8  expenses of the arbitration panels.
     9     (f)  No member shall participate in a case in which he may
    10  have an interest.]
    11     (a)  The administrator shall establish and maintain a pool of  <--
    12  full and part-time panel members from which he shall select
    13  arbitration panels to hear claims made under this act.
    14  Appointments to the pool of panel members shall be made by the
    15  administrator with due consideration given to persons
    16  recommended by appropriate recognized professional or lay
    17  organizations.
    18     (b)  Each arbitration panel selected by the administrator
    19  shall be composed of three members, including one attorney, who
    20  shall be designated as chairperson and who shall determine
    21  questions of law, one health care provider and one lay person
    22  who is neither a health care provider nor an attorney. The
    23  administrator may select a hospital administrator, podiatrist or
    24  osteopathic physician or surgeon as the health care provider
    25  panel member where the claim involves a member of one of those
    26  classes of health care providers.
    27     (c)  Any arbitration panel member selected by the
    28  administrator shall be subject to challenge for cause by any
    29  party. All challenges for cause shall be determined by the
    30  administrator. Each party shall also be entitled to one
    19790S0846B1085                  - 3 -

     1  peremptory challenge.
     2     (d)  The parties shall not be restricted to arbitration
     3  panels drawn from the pool of full and part-time panel members.   <--
     4  If all parties mutually agree upon an arbitration panelist or
     5  panelists, the panelist or panelists shall be invited to serve
     6  by the administrator. A panel mutually agreed upon by the
     7  parties shall be composed of three members: one attorney, one
     8  health care provider and one lay person.
     9     (e)  The attorney members of the arbitration panel pool shall
    10  be admitted to practice before the Supreme Court of the
    11  Commonwealth. The health care provider members of the
    12  arbitration panel pool who are subject to licensure shall be
    13  licensed by the Commonwealth.
    14     (f)  Arbitration panel members shall be paid at a daily or
    15  annual salary rate fixed by the Executive Board, plus actual and
    16  necessary expenses incurred in the performance of their official
    17  duties. The administrator shall provide for all other necessary
    18  expenses of the arbitration panels.
    19     (g)  No member shall participate in a case in which he may
    20  have an interest.
    21     (h)  The administrator's appointees to the pool of panel       <--
    22  members shall serve for a term of three years and may be
    23  reappointed by the administrator in his discretion, after
    24  consultation with appropriate recognized professional or lay
    25  organizations.
    26     Section 2.  This act shall take effect in 60 days AND SHALL    <--
    27  BE APPLICABLE TO ALL CLAIMS FILED IN THE OFFICE OF ARBITRATION
    28  PANELS FOR HEALTH CARE INCLUDING CLAIMS FILED PRIOR TO THE
    29  EFFECTIVE DATE OF THIS AMENDATORY ACT IN WHICH NO CHAIRPERSON
    30  HAS BEEN APPOINTED PRIOR TO SUCH EFFECTIVE DATE.
    F18L11RAW/19790S0846B1085        - 4 -