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                                                       PRINTER'S NO. 947

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 12 Session of 2007


        INTRODUCED BY STACK, MELLOW, TARTAGLIONE, FONTANA, O'PAKE,
           BOSCOLA, WASHINGTON, MUSTO, WOZNIAK, KASUNIC, LAVALLE,
           C. WILLIAMS, HUGHES, DINNIMAN AND KITCHEN, MAY 2, 2007

        REFERRED TO PUBLIC HEALTH AND WELFARE, MAY 2, 2007

                                     AN ACT

     1  Amending Title 40 (Insurance) of the Pennsylvania Consolidated
     2     Statutes, providing for quality of care and healthy
     3     lifestyles.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Title 40 of the Pennsylvania Consolidated
     7  Statutes is amended by adding a part to read:
     8                              PART IV
     9                         HEALTH CARE REFORM
    10  Chapter
    11    71.  (Reserved)
    12    72.  (Reserved)
    13    73.  (Reserved)
    14    74.  Quality of Care and Healthy Lifestyles
    15    75.  Miscellaneous Provisions
    16                             CHAPTER 71
    17                             (RESERVED)
    18                             CHAPTER 72

     1                             (RESERVED)
     2                             CHAPTER 73
     3                             (RESERVED)
     4                             CHAPTER 74
     5               QUALITY OF CARE AND HEALTHY LIFESTYLES
     6  Sec.
     7  7401.  Definitions.
     8  7402.  Patient safety.
     9  7403. (Reserved).
    10  § 7401.  Definitions.
    11     The following words and phrases when used in this chapter
    12  shall have the meanings given to them in this section unless the
    13  context clearly indicates otherwise:
    14     "Authority."  The Patient Safety Authority established under
    15  Mcare.
    16     "Consumer Price Index."  The Consumer Price Index for All
    17  Urban Consumers (CPI-U) for the Pennsylvania, New Jersey,
    18  Delaware and Maryland area, for the most recent 12-month period
    19  for which figures have been officially reported by the United
    20  States Department of Labor, Bureau of Labor Statistics,
    21  immediately prior to the subject date.
    22     "Department."  The Department of Health of the Commonwealth.
    23     "Health-care-acquired-infection."  An infection acquired in a
    24  health care facility.
    25     "Impaired professional program."  The program established
    26  under the act of December 20, 1985 (P.L.457, No.112), known as
    27  the Medical Practice Act of 1985.
    28     "MRSA."  Methicillin-resistant staphylococcus aureus, a more
    29  serious form of bacterial health-care-acquired infection that is
    30  resistant to commonly used antibiotics.
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     1     "Patient safety report."  The Patient Safety and Quality
     2  Improvement Report required under section 7402(f) (relating to
     3  patient safety).
     4     "Safe practices."  The set of standards endorsed by the
     5  National Quality Forum that should be used by health care
     6  providers to reduce the risk of harm to patients.
     7  § 7402.  Patient safety.
     8     (a)  Electronic surveillance of health-care-acquired
     9  infections.--
    10         (1)  By September 1, 2008, all hospitals shall use a
    11     uniform electronic surveillance system to report health-care-
    12     acquired infections to the council in a form and manner
    13     prescribed by the council. The system shall provide for all
    14     of the following:
    15             (i)  Extraction of existing electronic clinical data
    16         from hospital systems on an ongoing basis.
    17             (ii)  Translation of nonstandardized laboratory data
    18         into uniform information that can be analyzed on a
    19         population-wide basis.
    20             (iii)  Clinical support, educational tools and
    21         training to ensure that information provided under this
    22         paragraph will lead to change.
    23             (iv)  Clinical improvement measurement and the
    24         structure to provide ongoing positive and negative
    25         feedback to hospital staff who implement change.
    26         (2)  Within 30 days following the effective date of this
    27     section, the council shall identify and certify a specific
    28     system or systems that meet the criteria described in
    29     paragraph (1) and shall forward the identity of the certified
    30     system or systems to the Legislative Reference Bureau for
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     1     publication as a notice in the Pennsylvania Bulletin.
     2     (b)  Reporting emergency services.--The council, in
     3  consultation with the department, shall determine the manner and
     4  scope of reporting to the council that hospitals shall undertake
     5  with respect to individuals presenting at hospitals for
     6  emergency services. The council shall forward requirements
     7  concerning the reporting, including the date the reporting is to
     8  commence, to the Legislative Reference Bureau for publication as
     9  a notice in the Pennsylvania Bulletin. After the date the
    10  reporting is to commence, compliance with the requirements shall
    11  be a condition of licensure for hospitals.
    12     (c)  Reporting by nursing homes.--Nursing homes shall report
    13  to the council the same infections and in the same manner that
    14  hospitals are required to report to the council under the Health
    15  Care Cost Containment Act. Reporting shall begin within 30 days
    16  following the effective date of this section. For purposes of
    17  this section, nursing homes shall be additional data sources as
    18  defined in the Health Care Cost Containment Act, and covered
    19  services, as defined in that act, shall include those services
    20  provided by nursing homes.
    21     (d)  Analysis of nursing home data by Patient Safety
    22  Authority.--
    23         (1)  At the request of the department, but no less
    24     frequently than once per year, the authority shall analyze
    25     data without patient identifying information reported to the
    26     department by nursing homes with respect to events
    27     compromising patient safety as required by 28 Pa. Code § 51.3
    28     (relating to notification).
    29         (2)  The authority shall conduct analyses as it
    30     determines are appropriate to provide information to nursing
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     1     homes which can be used to improve patient safety and quality
     2     of care.
     3         (3)  The authority shall provide nursing homes with
     4     patient safety advisories issued by the authority and permit
     5     any nursing home administrator to attend any patient safety
     6     training program it offers.
     7         (4)  Nursing homes shall pay the department a surcharge
     8     on their licensing fees to provide sufficient revenues to the
     9     authority for its responsibilities under this section. The
    10     department shall determine the proportionate share to be paid
    11     by each nursing home on a per-bed basis within 60 days
    12     following the effective date of this section.
    13             (i)  The total surcharge for all nursing homes shall
    14         not exceed $1,000,000 in fiscal year 2007-2008 and shall
    15         be increased by the Consumer Price Index in each
    16         succeeding fiscal year. All surcharges shall be paid by
    17         the end of each fiscal year.
    18             (ii)  The department shall transfer the total
    19         surcharges collected to the Patient Safety Trust Fund
    20         within 30 days of receipt.
    21             (iii)  In the event that the Patient Safety Trust
    22         Fund is discontinued or the authority is dissolved, any
    23         balance of the surcharges paid by nursing homes remaining
    24         in the Patient Safety Trust Fund, after deducting
    25         administrative costs of liquidation, shall be returned to
    26         the nursing homes in proportion to their financial
    27         contributions to the Patient Safety Trust Fund in the
    28         preceding licensing period.
    29             (iv)  If, after 30 days' notice, a nursing home fails
    30         to pay a surcharge levied by the department under this
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     1         subsection, the department may assess an administrative
     2         penalty of $1,000 per day until the surcharge is paid.
     3         The penalty shall be imposed from the date of the notice
     4         and deposited into the CAP Fund.
     5     (e)  (Reserved).
     6     (f)  Health care facilities annual report.--
     7         (1)  A hospital shall, on or before April 1 of each
     8     calendar year, submit to the department a Patient Safety and
     9     Quality Improvement Report for each facility that it
    10     operates. The patient safety report shall cover the prior
    11     calendar year and shall contain at least the following
    12     information:
    13             (i)  Three-year trends in the rates of health-care-
    14         acquired infections, medication errors, readmissions and
    15         procedure complications, failures to rescue and falls.
    16             (ii)  The recommendations of the authority and
    17         approved by the department under section 301 of Mcare
    18         that have been implemented at the hospital.
    19             (iii)  The specific safe practices that each hospital
    20         facility will adopt and implement during the next
    21         calendar year to reduce health-care-acquired infections,
    22         medication errors, readmissions and procedure
    23         complications, failures to rescue and falls.
    24             (iv)  Beginning with the second report submitted
    25         under this subsection and with each report submitted
    26         thereafter, the progress of implementation of safe
    27         practices adopted during the previous calendar year,
    28         whether the hospital will continue any of the practices
    29         and the reason the hospital will discontinue any safe
    30         practice previously adopted.
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     1             (v)  The hospital's plan to implement facility-wide
     2         and data-driven error-reduction or quality improvement
     3         programs that the hospital intends to adopt and implement
     4         at each hospital facility, including a computer physician
     5         order entry system, medication bar coding and programs to
     6         identify and correct systemic causes of error and achieve
     7         reliable quality outcomes.
     8         (2)  Submission of the report shall be a condition of
     9     hospital licensure.
    10         (3)  The department may use information reported to it
    11     under paragraph (1) for the purposes of providing information
    12     to consumers and developing performance and quality standards
    13     and best practices and shall cooperate with the council in
    14     making the information available on a single consumer
    15     accessible Internet website that may be used by consumers for
    16     comparative purposes to determine where they wish to receive
    17     health care.
    18     (g)  Standards to reduce health-care-acquired infections and
    19  medical errors.--
    20         (1)  All hospitals and nursing homes shall adopt
    21     evidence-based universal screening of patients and residents
    22     for MRSA upon admission and randomized screening of
    23     inpatients, residents and staff. If a screening results in a
    24     positive culture, the patient or resident shall be isolated
    25     and the hospital or nursing home shall take all actions
    26     necessary to prevent the spread of MRSA to other inpatients,
    27     residents or staff. The department shall develop acceptable
    28     protocols for such screening and necessary isolation and
    29     treatment and forward them to the Legislative Reference
    30     Bureau for publication as a notice in the Pennsylvania
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     1     Bulletin within 180 days following the effective date of this
     2     section.
     3         (2)  The department shall establish all of the following:
     4             (i)  Standardized best practices for health care
     5         facilities to adopt to eliminate health-care-acquired
     6         infections and medical errors and to maintain patient
     7         safety.
     8             (ii)  A date by which health care facilities shall
     9         adopt the standards as a condition of licensure.
    10         (3)  The department shall not issue or renew a license to
    11     a health care facility that fails to meet the requirements of
    12     this subsection and demonstrates that it has made substantial
    13     progress toward the elimination of health-care-acquired
    14     infections and medical errors.
    15     (h)  Patient safety training.--
    16         (1)  As a condition of receiving a license from the
    17     department under the Health Care Facilities Act and as a
    18     condition of continued licensure under that act, the
    19     following shall apply:
    20             (i)  Each hospital shall ensure that every licensee
    21         providing clinical services in the hospital, every chief
    22         executive officer, chief financial officer and chief
    23         medical officer, and every officer and director of the
    24         hospital board of directors receives at least six hours
    25         of in-person and monitored training in patient safety and
    26         continuous quality improvement every two years.
    27             (ii)  Each nursing home shall ensure that its nursing
    28         home administrator and director of nursing receives at
    29         least six hours of in-person and monitored training in
    30         patient safety and continuous quality improvement every
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     1         two years.
     2         (2)  Hospitals and nursing homes currently licensed will
     3     have 12 months following the effective date of this section
     4     to comply with this subsection. Hospitals and nursing homes
     5     applying for a license for the first time following the
     6     effective date of this section shall certify to the
     7     department that the persons described under paragraph (1)
     8     have completed the requisite training within the preceding
     9     12-month period as a condition of being licensed.
    10         (3)  The department shall issue guidelines with respect
    11     to the particular types of patient safety education classes
    12     that will be acceptable. The training shall emphasize the
    13     integrated nature of patient safety and continuous quality
    14     improvement.
    15         (4)  Documentation of training shall be maintained as
    16     part of the records of the hospital or nursing home.
    17         (5)  The training requirements of this subsection are not
    18     to be construed to add to any continuing education
    19     requirements imposed by a State licensing board.
    20         (6)  For the fiscal year 2008-2009 and thereafter, the
    21     State Board of Medicine shall not approve for accreditation
    22     any graduate medical education program in this Commonwealth
    23     that does not require a minimum of six hours of patient
    24     safety training focused on eliminating health-care-acquired
    25     infections, preventing medical errors and integrating safe
    26     practices into the clinical environment.
    27     (i)  Clinical skills assessments.--The State Board of
    28  Medicine may utilize a program similar to the impaired
    29  professional program through which a licensee may be referred
    30  for a clinical skills assessment and undertake a subsequent plan
    20070S0012B0947                  - 9 -     

     1  to improve clinical skills or otherwise address any clinical
     2  skills deficiencies, if the State Board of Medicine has
     3  evaluated the program and approved its use by licensees of the
     4  board. Once approved, the board shall have the authority to
     5  defer disciplinary or corrective action, provided that the
     6  licensee enters into an agreement with the board to undergo the
     7  assessment and continues to completion with a plan acceptable to
     8  the board to address any deficiency.
     9     (j)  Enforcement.--In addition to any other remedy available,
    10  the council may impose a civil penalty of up to $500 per day for
    11  each failure of a facility to provide the council the
    12  information required under this section. All fines collected
    13  under this subsection shall be deposited in the CAP Fund.
    14  § 7403.  (Reserved).
    15                             CHAPTER 75
    16                      MISCELLANEOUS PROVISIONS
    17  Sec.
    18  7501.  (Reserved).
    19  7502.  Enforcement.
    20  7503.  Severability.
    21  § 7501.  (Reserved).
    22  § 7502.  Enforcement.
    23     (a)  Determination of violation.--Upon a determination that a
    24  person licensed by the Insurance Department has violated any
    25  provision of this part, the department may in consultation with
    26  the Department of Health, subject to 2 Pa.C.S. Chs. 5 Subch. A
    27  (relating to practice and procedure of Commonwealth agencies)
    28  and 7 Subch. A (relating to judicial review of Commonwealth
    29  agency action) do any of the following:
    30         (1)  Issue an order requiring the person to cease and
    20070S0012B0947                 - 10 -     

     1     desist from engaging in the violation.
     2         (2)  Suspend or revoke or refuse to issue or renew the
     3     certificate or license of the offending party or parties.
     4         (3)  Impose an administrative penalty of up to $5,000 for
     5     each violation.
     6         (4)  Seek restitution.
     7         (5)  Impose any other penalty or pursue any other remedy
     8     deemed appropriate by the commissioner.
     9     (b)  Other remedies.--The enforcement remedies imposed under
    10  this section are in addition to any other remedies or penalties
    11  which be imposed by any other applicable statute, including the
    12  act of July 22, 1974 (P.L.589, No.205), known as the Unfair
    13  Insurance Practices Act. A violation by any person of this part
    14  is deemed an unfair method of competition and an unfair or
    15  deceptive act of practice under the Unfair Insurance Practices
    16  Act.
    17     (c)  No private cause of action.--Nothing in this part shall
    18  be construed as to create or imply a private cause of action for
    19  violation of this part.
    20  § 7503.  Severability.
    21     (a)  General rule.--The provisions of this part are
    22  severable. If any provision of this part or its application to
    23  any person or circumstance is held invalid, the invalidity shall
    24  not affect other provisions or applications of this part which
    25  can be given effect without the invalid provision or
    26  application.
    27     (b)  (Reserved).
    28     (c)  (Reserved).
    29     Section 2.  This act shall take effect in 60 days.

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