HOUSE AMENDED
        PRIOR PRINTER'S NOS. 944, 1022, 1085          PRINTER'S NO. 1404

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 846 Session of 1979


        INTRODUCED BY HANKINS AND HAGER, JUNE 20, 1979

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           DECEMBER 3, 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 AND PROVIDING FOR           <--
    10     SEVERABILITY.

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


     1  members including two health care providers, two attorneys, one
     2  of whom shall be designated as chairman by the administrator,
     3  who shall determine questions of law and three lay persons who
     4  are not health care providers nor licensed to practice law.
     5  Wherever possible, the administrator shall select a hospital
     6  administrator, podiatrist, or osteopathic physician or surgeon
     7  as one of the health care provider panel members where the claim
     8  involves a member of one of those classes of health care
     9  providers.
    10     (c)  Arbitration panel candidates shall be selected from a
    11  pool of candidates generated by the administrator. The rules and
    12  regulations promulgated by the administrator pertaining to the
    13  selection of arbitrators shall provide that the administrator
    14  shall send simultaneously to each party an identical list of
    15  five arbitration panel candidates in each of the three
    16  categories together with a brief biographical statement on each
    17  candidate. A party may strike from the list any two names which
    18  are unacceptable in each category. Any mutually agreeable
    19  candidate may be invited by the administrator to serve. Where
    20  insufficient mutually agreeable candidates are selected for any
    21  category a second list of that category shall be sent by the
    22  administrator. If a complete arbitration panel is not selected
    23  by mutual agreement of the parties the administrator shall
    24  appoint the remainder of the arbitration panel. Any appointment
    25  by the administrator shall be subject to challenge by any party
    26  for cause. A request to strike an arbitrator for cause shall be
    27  determined by the administrator. The parties shall not be
    28  restricted to the arbitration panel candidates submitted for
    29  consideration; but, if all parties mutually agree upon an
    30  arbitration panelist within a designated category, the panelist
    19790S0846B1404                  - 2 -

     1  shall be invited to serve.
     2     (d)  The attorney and health care provider members of each
     3  arbitration panel shall be or have been practicing members of
     4  their respective professions.
     5     (e)  Arbitration panel members shall be paid on a per diem or
     6  salary basis as fixed by the Executive Board plus actual and
     7  necessary expenses incurred in the performance of their official
     8  duties. The administrator shall provide for all other necessary
     9  expenses of the arbitration panels.
    10     (f)  No member shall participate in a case in which he may
    11  have an interest.]
    12     (a)  The administrator shall establish and maintain a pool of  <--
    13  full and part-time panel members from which he shall select
    14  arbitration panels to hear claims made under this act.
    15  Appointments to the pool of panel members shall be made by the
    16  administrator with due consideration given to persons
    17  recommended by appropriate recognized professional or lay
    18  organizations.
    19     (b)  Each arbitration panel selected by the administrator
    20  shall be composed of three members, including one attorney, who
    21  shall be designated as chairperson and who shall determine
    22  questions of law, one health care provider and one lay person
    23  who is neither a health care provider nor an attorney. The
    24  administrator may select a hospital administrator, podiatrist or
    25  osteopathic physician or surgeon as the health care provider
    26  panel member where the claim involves a member of one of those
    27  classes of health care providers.
    28     (c)  Any arbitration panel member selected by the
    29  administrator shall be subject to challenge for cause by any
    30  party. All challenges for cause shall be determined by the
    19790S0846B1404                  - 3 -

     1  administrator. Each party shall also be entitled to one
     2  peremptory challenge.
     3     (d)  The parties shall not be restricted to arbitration
     4  panels drawn from the pool of full and part-time panel members.   <--
     5  If all parties mutually agree upon an arbitration panelist or
     6  panelists, the panelist or panelists shall be invited to serve
     7  by the administrator. A panel mutually agreed upon by the
     8  parties shall be composed of three members: one attorney, one
     9  health care provider and one lay person.
    10     (e)  The attorney members of the arbitration panel pool shall
    11  be admitted to practice before the Supreme Court of the
    12  Commonwealth. The health care provider members of the
    13  arbitration panel pool who are subject to licensure shall be
    14  licensed by the Commonwealth.
    15     (f)  Arbitration panel members shall be paid at a daily or
    16  annual salary rate fixed by the Executive Board, plus actual and
    17  necessary expenses incurred in the performance of their official
    18  duties. The administrator shall provide for all other necessary
    19  expenses of the arbitration panels.
    20     (g)  No member shall participate in a case in which he may
    21  have an interest.
    22     (h)  The administrator's appointees to the pool of panel       <--
    23  members shall serve for a term of three years and may be
    24  reappointed by the administrator in his discretion, after
    25  consultation with appropriate recognized professional or lay
    26  organizations.
    27     SECTION 403.  TRANSFER TO COMMON PLEAS COURT.--IF AN           <--
    28  ARBITRATION PANEL IS NOT SELECTED BY THE ADMINISTRATOR WITHIN 90
    29  DAYS AFTER THE FILING OF A CERTIFICATE OF READINESS AS PROVIDED
    30  FOR IN THE APPLICABLE RULES AND REGULATIONS, IN SUCH EVENT THE
    19790S0846B1404                  - 4 -

     1  ADMINISTRATOR SHALL FORTHWITH TRANSFER THE CASE TO THE COMMON
     2  PLEAS COURT HAVING VENUE OVER THE CASE FOR PRETRIAL AND TRIAL AS
     3  IN OTHER CIVIL CASES.
     4     SECTION 1007.1.  SEVERABILITY.--IF ANY PROVISION OR CLAUSE OF
     5  THIS ACT OR THE APPLICATION THEREOF TO ANY PERSON OR SITUATION
     6  IS HELD INVALID, SUCH INVALIDITY SHALL NOT AFFECT OTHER
     7  PROVISIONS OR APPLICATIONS OF THE ACT WHICH CAN BE GIVEN EFFECT
     8  WITHOUT THE INVALID PROVISION OR APPLICATION, AND TO THIS END
     9  THE PROVISIONS OF THIS ACT ARE DECLARED TO BE SEVERABLE.
    10     Section 2.  This act shall take effect in 60 days AND SHALL    <--
    11  BE APPLICABLE TO ALL CLAIMS FILED IN THE OFFICE OF ARBITRATION
    12  PANELS FOR HEALTH CARE INCLUDING CLAIMS FILED PRIOR TO THE
    13  EFFECTIVE DATE OF THIS AMENDATORY ACT IN WHICH NO CHAIRPERSON
    14  HAS BEEN APPOINTED PRIOR TO SUCH EFFECTIVE DATE.











    F18L11RAW/19790S0846B1404        - 5 -