PRIOR PRINTER'S NO. 2936

PRINTER'S NO.  3957

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2106

Session of

2009

  

  

INTRODUCED BY R. TAYLOR, DeLUCA, BARBIN, BELFANTI, BROWN, BURNS, D. COSTA, FABRIZIO, FRANKEL, FREEMAN, GIBBONS, HORNAMAN, HUTCHINSON, JOHNSON, JOSEPHS, LENTZ, LONGIETTI, MANN, MATZIE, McILVAINE SMITH, MELIO, MUNDY, MURPHY, PASHINSKI, SHAPIRO, SIPTROTH, SONNEY, SWANGER, THOMAS, YOUNGBLOOD AND BRADFORD, NOVEMBER 23, 2009

  

  

AS REPORTED FROM COMMITTEE ON INSURANCE, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 22, 2010   

  

  

  

AN ACT

  

1

Establishing the Pennsylvania Health Information Exchange

2

Authority and the Health Information Technology Fund; and

3

providing for grants and loans for health information

4

technology and for duties of the Department of Health 

<--

5

Community and Economic Development.

<--

6

The General Assembly of the Commonwealth of Pennsylvania

7

hereby enacts as follows:

8

CHAPTER 1 

9

PRELIMINARY PROVISIONS

10

Section 101.  Short title.

11

This act shall be known and may be cited as the Health

12

Information Technology Act.

13

Section 102.  Definitions.

14

The following words and phrases when used in this act shall

15

have the meanings given to them in this section unless the

16

context clearly indicates otherwise:

17

"Clinical decision support system."  An interactive computer

 


1

system that assists health care providers in applying new

2

information to patient care through the analysis of patient-

3

specific clinical variables.

4

"Community-based health care clinic."  A nonprofit health

5

care center located in this Commonwealth providing comprehensive

6

health care services without regard for a patient's ability to

7

pay and:

8

(1)  meets either of the following criteria:

9

(i)  serves a federally designated medically

10

underserved area, a medically underserved population or a

11

health professional shortage area; or

12

(ii)  serves a patient population with a majority of

13

that population having an income less than 200% of the

14

Federal poverty income guidelines; and

15

(2)  includes any of the following:

16

(i)  a federally qualified health center as defined

17

in section 1905(1)(2)(B) of the Social Security Act (49

18

Stat. 620, 42 U.S.C. § 1396d(1)(2)(B)) or a federally

19

qualified health center look-alike;

20

(ii)  a rural health clinic as defined in 1861(aa)(2)

21

of the Social Security Act (49 Stat. 620, 42 U.S.C. §

22

1395x(aa)(2));

23

(iii)  a hospital outpatient clinic certified by

24

Medicare;

25

(iv)  a free or partial-pay health clinic that

26

provides medical home and primary care services by

27

volunteer and nonvolunteer health care providers; or

28

(v)  a nurse-managed health care clinic that is

29

managed by advanced practice nurses, a federally

30

qualified health center or an independent nonprofit

- 2 -

 


1

health or social services agency.

2

"Department."  The Department of Community and Economic

3

Development of the Commonwealth.

4

"Fund."  The Health Information Technology Fund established

5

in section 503.

6

"Health care facility."  A health care facility as defined

7

under section 802.1 of the act of July 19, 1979 (P.L.130,

8

No.48), known as the Health Care Facilities Act, or an entity

9

licensed as a hospital under the act of June 13, 1967 (P.L.31,

10

No.21), known as the Public Welfare Code.

11

"Health care provider."  A person licensed by the

12

Commonwealth to provide health care or professional medical

13

services. The term includes, but is not limited to, a physician,

14

a dentist, a pediatrician, a certified nurse midwife, a

15

podiatrist, a certified registered nurse practitioner, a

16

physician assistant, a skilled nursing facility, nursing home,

17

home health entity, a community-based health care clinic and

18

community mental health center.

19

"Health informatics."  Any of the following:

<--

20

(1)  The electronic exchange of health care information

21

among entities in the health care system, including, but not

22

limited to:

23

(i)  Physicians and other health care providers.

24

(ii)  Health insurance companies and health

25

maintenance organizations.

26

(iii)  Federal and State government health payers.

27

(iv)  Employers.

28

(v)  Pharmacies and pharmacy benefit managers.

29

(vi)  Laboratories.

30

(vii)  Public health agencies. 

- 3 -

 


1

(2)  The provision of the most current, complete and

2

accurate information possible when making health care

3

decisions regarding patients.

4

(3)  The sharing and exchange of health care information

5

among organizations that are owners or custodians of the

6

health care information.

7

(4)  The use of information technology to enable and

8

improve the exchange and presentation of health care

9

information.

10

(5)  The adoption and use of electronic medical record

11

technology, where appropriate, within the health care system.

12

(6)  The reduction of total health care costs through

13

improved quality and reduction in redundancies and

14

administrative waste.

15

"Health information."  Information that:

16

(1)  is created or received by a health care provider,

17

health plan, public health authority or health care

18

clearinghouse; and

19

(2)  relates to the past, present or future physical or

20

mental health or condition of an individual, the provision of

21

health care to an individual or the past, present or future

22

payment for the provision of health care to an individual.

23

"Health information exchange" or "HIE."  The electronic

24

movement of health-related information among organizations

25

according to nationally recognized standards.

26

"Health information technology."  Hardware, software,

27

integrated technologies or related licenses, intellectual

28

property, upgrades or packaged solutions sold as services that

29

are designed for or support the use by health care entities or

30

patients for the electronic creation, maintenance, access or

- 4 -

 


1

exchange of health information.

2

"Health information technology regional extension center."  A

3

United States-based nonprofit institution or organization or

4

group of nonprofit institutions or organizations, meeting the

5

requirements established by the Office of the National

6

Coordinator and created to:

7

(1)  Encourage adoption of certified electronic health

8

records by clinicians and hospitals.

9

(2)  Increase the probability that adopters of electronic

10

health record systems will become meaningful users of the

11

technology.

12

(3)  Assist clinicians and hospitals to become meaningful

13

users of electronic health records.

14

"Health informatics."  Any of the following:

<--

15

(1)  The electronic exchange of health care information

16

among entities in the health care system, including, but not

17

limited to:

18

(i)  Physicians and other health care providers.

19

(ii)  Health insurance companies and health

20

maintenance organizations.

21

(iii)  Federal and State government health payers.

22

(iv)  Employers.

23

(v)  Pharmacies and pharmacy benefit managers.

24

(vi)  Laboratories.

25

(vii)  Public health agencies. 

26

(2)  The provision of the most current, complete and

27

accurate information possible when making health care

28

decisions regarding patients.

29

(3)  The sharing and exchange of health care information

30

among organizations that are owners or custodians of the

- 5 -

 


1

health care information.

2

(4)  The use of information technology to enable and

3

improve the exchange and presentation of health care

4

information.

5

(5)  The adoption and use of electronic medical record

6

technology, where appropriate, within the health care system.

7

(6)  The reduction of total health care costs through

8

improved quality and reduction in redundancies and

9

administrative waste.

10

"Health information technology system."  The secure use of

11

information and communication technology that may include:

12

(1)  electronic health records;

13

(2)  personal health records;

14

(3)  e-mail communication;

15

(4)  clinical alerts and reminders;

16

(5)  clinical decision support systems; or

17

(6)  other technologies that store, protect, retrieve and

18

transfer clinical, administrative and financial information

19

electronically within health care settings.

20

"Health insurer."  Any of the following providers of health

21

care insurance coverage:

22

(1)  an insurer licensed under the act of May 17, 1921

23

(P.L.682, No.284), known as The Insurance Company Law of

24

1921;

25

(2)  a health maintenance organization as defined in

26

section 3 of the act of December 29, 1972 (P.L.1701, No.364),

27

known as the Health Maintenance Organization Act; or

28

(3)  a nonprofit health plan corporation operating under

29

40 Pa.C.S. Chs. 61 (relating to hospital plan corporations)

30

and 63 (relating to professional health services plan

- 6 -

 


1

corporations).

2

"Interoperability."  The ability of different information

3

technology systems and applications to exchange data securely,

4

accurately, effectively and in a manner that maintains and

5

preserves the clinical purpose of the data.

6

"National Coordinator."  The head of the office of the

7

National Coordinator of Health Information Technology.

8

"Program."  The Health Technology Program established in

9

Chapter 3.

10

"Protected health information."  Protected health information

11

under 45 CFR Parts 160 (relating to general administrative

12

requirements) and 164 Subpts. A (relating to general provisions)

13

and E (relating to privacy of individually identifiable health

14

information).

15

"Qualified electronic health record."  An electronic health

16

record that has been generated under the Recovery and

17

Reinvestment Act of 2009 (Public Law 111-5, 123 Stat. 115) and

18

that is applicable to the type of record involved.

19

CHAPTER 3

20

PENNSYLVANIA HEALTH INFORMATION EXCHANGE (PHIX)

21

Section 301.  Scope of chapter.

22

This chapter relates to facilitating and assisting in the

23

development and operation of a Statewide health information

24

exchange.

25

Section 302.  Definitions.

26

The following words and phrases when used in this chapter

27

shall have the meanings given to them in this section unless the

28

context clearly indicates otherwise:

29

"Authority."  The Pennsylvania Health Information Exchange

30

(HIE) Authority established under section 303(a).

- 7 -

 


1

"Board."  The board of directors of the Pennsylvania Health

2

Information Exchange (PHIX) Authority established under section

3

303(b).

4

Section 303.  Establishment of the Pennsylvania Health

5

Information Exchange Authority.

6

(a)  Establishment.--There is established a body corporate

7

and politic to be known as the Pennsylvania Health Information

8

Exchange (PHIX) Authority.

9

(b)  Board.--The powers and duties of the authority shall be

10

vested in and exercised by a board of directors.

11

(c)  Board composition.--The board of the authority shall

12

consist of 17 members, appointed in accordance with the

13

following:

14

(1)  An individual with experience in health informatics

<--

15

appointed by the Governor.

16

(1)  An individual appointed by the Governor from a list

<--

17

of three qualified individuals with experience in health

18

informatics recommended by a technology industry organization

19

operating and based in Pennsylvania.

20

(2)  Four Commonwealth residents with an expertise in

21

health informatics. Each of the following persons shall

22

appoint one person:

23

(i)  The President pro tempore of the Senate.

24

(ii)  The Minority Leader of the Senate.

25

(iii)  The Speaker of the House of Representatives.

26

(iv)  The Minority Leader of the House of

27

Representatives.

28

(3)  A physician appointed by the Governor who shall

<--

29

serve an initial term of three years.

30

(3)  Three physicians appointed by the Governor from a

<--

- 8 -

 


1

list of six qualified licensed physicians recommended by the

2

Pennsylvania Medical Society and the Pennsylvania Osteopathic

3

Medical Association. Each shall serve initial terms of three

4

years. One appointee shall be from a practice employing ten

5

or fewer physicians. One appointee shall be from a rural

6

practice. One appointee shall be part of a large urban or

7

suburban practice of 51 physicians or more.

8

(4)  Seven individuals with expertise in health

9

informatics appointed as follows:

10

(i)  Two individuals representing a community-based

11

health care clinic, one of whom from a federally

12

qualified health center. One shall be appointed by the

13

Majority Leader of the Senate and one shall be appointed

14

by the Majority Leader of the House of Representatives.

15

(ii)  Three individuals recommended by the Hospital

16

and Healthsystem Association of Pennsylvania, one of whom

17

shall be a representative of rural hospitals. One shall

18

be appointed by the President pro tempore of the Senate

19

and one appointed by the Speaker of the House of

20

Representatives. The remaining individual shall be the

21

representative of rural hospitals and appointed by the

22

Majority Leader of the House of Representatives.

23

(iii)  One representative of the Blue Cross and Blue

24

Shield plans in Pennsylvania, appointed by the Minority

25

Leader of the Senate.

26

(iv)  One representative of a licensed insurer other

27

than a Blue Cross or Blue Shield plan, appointed by the

28

Minority Leader of the House of Representatives.

29

(5)  The Deputy Secretary of Public Welfare or a

<--

30

designee.

- 9 -

 


1

(6)  A representative of consumers who is not primarily

2

involved in the provision of health care or health care

3

insurance appointed by the Governor.

4

(7)  Two individuals appointed by the Governor, one with

5

expertise in privacy and the other with expertise in health

6

information security.

7

(d)  Terms.--Members of the board shall not serve more than

8

three full consecutive terms. Each board member shall serve a

9

term coterminous with the board member's appointing authority

10

unless replaced earlier by the appointing authority.

11

(e)  Quorum.--A majority of the members of the board shall

12

constitute a quorum.

13

(f)  Action.--Notwithstanding any other provision of law,

14

action may be taken by the board at a meeting upon a vote of the

15

majority of its members present in person or through the use of

16

amplified telephonic equipment if authorized by the bylaws of

17

the board.

18

(g)  Meetings.--The board shall meet at the call of the

19

chairperson or as may be provided in the bylaws of the board.

20

The board shall hold quarterly meetings which shall be subject

21

to the requirements of 65 Pa.C.S. Ch. 7 (relating to open

22

meetings). Meetings of the board shall be held within this

23

Commonwealth. Records of board meetings are subject to the act

<--

24

of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know

25

Law.

26

(h)  Chairperson.--The chairperson shall be the person

27

appointed under subsection (c)(1).

28

(i)  Formation.--The authority shall be formed within 60 days

29

of the effective date of this section.

30

Section 304.  Powers and duties.

- 10 -

 


1

(a)  General rule.--The board shall:

2

(1)  Adopt bylaws necessary to carry out the provisions

3

of this chapter.

4

(2)  Employ staff as necessary to implement this chapter.

5

(3)  Make, execute and deliver contracts and other

6

instruments.

7

(4)  Apply for, solicit, receive, establish priorities

8

for, allocate, disburse, contract for, administer and spend

9

moneys in the fund under Chapter 5 and other funds made

10

available to the board from a source consistent with the

11

purposes of this chapter.

12

(5)  Participate with the department in applying for and

13

distributing grants and loans under Chapter 5.

14

(6)  Accept Federal grants to carry out the purpose of

15

the authority that includes administering grants and loans in

16

accordance with the terms of the grants.

17

(7)  Impose subscription or transaction fees for users of

<--

18

the health information exchange which shall be used to pay

19

for the exchange's operation.

20

(b)  Exchange of electronic information.--The authority

21

shall:

22

(1)  Define the vision for a Statewide health information

23

exchange system to electronically exchange health care

24

information among entities in the health care system. This

25

shall include, but is not limited to:

26

(i)  Health care providers.

27

(ii)  Health insurance companies and managed care

28

organizations.

29

(iii)  Federal and State government health payors.

30

(iv)  Employers.

- 11 -

 


1

(v)  Pharmacies and pharmacy benefit managers.

2

(vi)  Laboratories.

3

(vii)  Public health agencies.

4

(2)  Encourage, facilitate and assist in:

5

(i)  The development of the Statewide health

6

information exchange system.

7

(ii)  The ongoing operation of the Statewide health

8

information exchange system, including monitoring the

9

performance, quality and security of the Statewide health

10

information exchange system.

11

(3)  Oversee a collaborative Statewide process using

12

public and private expertise to develop common polices,

13

clinical goals, technical requirements and architectural

14

standards for this Commonwealth's health information exchange

15

system consistent with emerging Federal requirements.

16

(4)  Develop policies using a collaborative Statewide

17

process to ensure compliance with section 305. 

18

(c)  Statewide health information technology plan.--The

19

authority shall facilitate with the department the development

20

of a Statewide health information technology plan that includes

21

the implementation of an integrated electronic health

22

information infrastructure for the sharing of electronic health

23

information among health care facilities, health care

24

professionals, public and private payers and patients. The

25

health information technology plan shall:

26

(1)  Support the effective, efficient, Statewide use of

27

electronic health information in patient care, health care

28

policymaking, clinical research, health care financing and

29

continuous improvements to quality.

30

(2)  Propose methods to educate the general public and

- 12 -

 


1

health care providers about the value of an electronic health

2

infrastructure for improving patient care.

3

(3)  Promote the use of national standards for the

4

development of an interoperable system, which shall include

5

provisions relating to security, privacy, data content,

6

structures and format, vocabulary and transmission protocols.

7

(4)  Propose strategic investments in equipment and other

8

infrastructure elements that will facilitate the ongoing

9

development of a Statewide infrastructure.

10

(5)  Recommend funding mechanisms for the ongoing

11

development and maintenance costs of a Statewide health

12

information system, including funding options and an

13

implementation strategy for a loan and grant program.

14

(6)  Propose to incorporate the existing health care

15

information technology initiatives in order to avoid

16

incompatible systems and duplicative efforts.

17

(7)  Address issues related to data ownership, governance

18

and confidentiality and security of patient information.

19

(8)  Once the Statewide health information technology

<--

20

plan has been drafted, the plan shall be posted for public

21

comment for a period of 30 days. Written input shall be

22

submitted to the authority. Public comment shall be reviewed

23

and considered by the authority before a final plan is

24

adopted.

25

(d)  Statewide health information exchange.--The authority

26

shall establish Statewide health information exchange

27

capabilities for streamlining health care administrative

28

functions, including:

29

(1)  Communicating point-of-care services, including

30

laboratory results, diagnostic imaging and prescription

- 13 -

 


1

histories.

2

(2)  Communicating patient identification and emergency

3

room required information in conformity with Federal and

4

State privacy laws.

5

(3)  Real-time communication of enrollee status in

6

relation to health plan coverage, including enrollee cost-

7

sharing responsibilities.

8

(4)  Current census and status of health plan-contracted

9

providers.

10

(e)  Security measures.--The authority shall develop and

11

establish appropriate security standards to protect both the

12

transmission and the receipt of individually identifiable health

13

information or health care data that include:

14

(1)  Appropriate security standards to protect access to

15

any individually identifiable health information or health

16

care data that may be collected, assembled or maintained by

17

the authority.

18

(2)  Levels of security and protection for access to and

19

control of individually identifiable health information,

20

including mental health care data and data relating to

21

specific disease status that is governed by more stringent

22

Federal or State privacy laws.

23

(3)  Policies and procedures for the authority for taking

24

disciplinary actions against a board member, employee or

25

other person with access to individually identifiable health

26

care information that violates Federal or State privacy laws

27

related to health care information or data maintained by the

28

corporation.

29

(4)  Privacy, security operational and technical

30

standards to assist health information exchanges in this

- 14 -

 


1

Commonwealth to ensure effective Statewide privacy, data

2

security, efficiency and interoperability across networks.

3

(f)  Advisory panels.--The board may create any advisory

4

panels that the board considers useful to advise the board and

5

the authority on issues determined by the board. The authority

6

may create advisory panels to advise the board and the authority

7

on a particular issue. The board shall consider the interests of

8

the following when creating an advisory panel:

9

(1)  Health care provider.

10

(2)  Insurers.

11

(3)  Managed care organizations.

12

(4)  Health care information systems.

13

(5)  Hospitals and health systems.

14

(6)  Laboratory services.

15

(7)  Radiological services.

16

(8)  Community-based health care clinics.

17

(9)  Health information exchange organizations.

18

(10)  Pharmacies.

19

(11)  Dentists.

20

(12)  Pediatricians.

21

(13)  Any other health care providers.

22

Section 305.  Prohibited use of information.

23

The authority shall not engage in any of the following:

24

(1)  The collection and analysis of clinical data.

25

(2)  The comparison of health care providers to other

26

health care providers.

27

(3)  Providing access to aggregated, de-identified

<--

28

protected health information to local health information

29

exchanges and other users of quality care studies, disease

30

management and population health assessments.

- 15 -

 


1

(4)  Providing access to public health programs trended,

2

aggregated, de-identified protected health information to

3

help assess the health status of populations and providing of

4

regular reports of trends and important incidence of events

5

to public health avenues for intervention, education and

6

prevention programs.

7

(5)  The creation of evidence-based standards for the

8

practice of medicine.

9

Section 306.  Appropriate use of information.

<--

10

The authority may provide access to aggregated, de-

11

identified, protected health information to local health

12

information exchanges, Commonwealth-accredited universities and

13

public health departments for the purposes of disease

14

management, population health assessments and identifying public

15

health trends or incidents.

16

Section 306 307.  Annual report.

<--

17

(a)  Deadline and contents.--The board shall report no later

18

than July 1, 2010, and annually thereafter to the General

19

Assembly on the activities in the preceding year. The report

20

shall include:

21

(1)  A schedule of the year's meetings.

22

(2)  Updates to the Statewide plan created under section

23

304.

24

(3)  Updates to privacy, security, operational and

25

technical standards to assist health information exchanges in

26

this Commonwealth to ensure effective Statewide privacy, data

27

security, efficiency and interoperability across networks.

28

(4)  A list of any grants or loans that the authority

29

assisted in attaining for any health care provider or health

30

information exchange.

- 16 -

 


1

(5)  A summary of the fund receipts and expenditures,

2

including a financial statement and balance sheet.

3

(b)  Distribution.--The report shall be distributed to the

4

Secretary of Health, the chair and minority chair of the Public

5

Health and Welfare Committee of the Senate and the chair and

6

minority chair of the Health and Human Services Committee of the

7

House of Representatives.

8

(c)  Public access.--The annual report shall be made

9

available for public inspection and shall be posted on the

10

authority's publicly accessible Internet website.

11

CHAPTER 5

12

LOANS OR GRANTS FOR INFORMATION NETWORKS PROGRAM

13

Section 501. Purpose.

14

This chapter relates to assisting health care providers in

15

funding for health technology information facilitating and

16

assisting in the development and operation of a Statewide health

17

information exchange.

18

Section 502.  Health Information Technology Program.

19

(a)  Establishment.--The Loans or Grants for Information

20

Networks (LOGIN) Program is established in the department to

21

administer loans or grants:

22

(1)  under the American Recovery and Reinvestment Act of

23

2009 (Public Law 111-5, 123 Stat. 115); or

24

(2)  from sources other than those in paragraph (1) that

25

shall be used to provide funding to health care providers or

26

health information technology regional extension centers to

27

encourage the adoption and implementation of health

28

information technology.

29

(b)  Eligible activities.--The program may provide grants or

30

loans to health care facilities, health care providers or health

- 17 -

 


1

information exchanges.

2

(c)  Grants.--Grants shall be used to conduct activities to

3

facilitate and expand the electronic movement and use of health

4

information among organizations according to nationally

5

recognized standards through activities that include:

6

(1)  Training and dissemination of information on best

7

practices to integrate health information technology.

8

(2)  Promoting the interoperability of clinical data

9

repositories or registries.

10

(3)  Promoting technologies and best practices that

11

enhance the protection of health information by all holders

12

of individually identifiable health information.

13

(4)  Improving the secure electronic exchange of health

14

information.

15

(5)  Improvement and expansion of the use of health

16

information technology by public health departments.

17

(6)  Providing technical assistance for the development

18

and dissemination of solutions to barriers to the exchange of

19

electronic health information.

20

(7)  Promoting effective strategies to adopt and utilize

21

health information technology in medically underserved

22

communities.

23

(8)  Assisting patients in utilizing health information

24

technology.

25

(d)  Loans.--Loans may be used for the following activities:

26

(1)  The purchase by health care providers and health

27

care facilities of qualified electronic health record

28

technology.

29

(2)  Enhancing the utilization of qualified electronic

30

health record that may include costs associated with

- 18 -

 


1

upgrading health information technology so that it meets

2

criteria for a qualified electronic health record technology.

3

(3)  Training personnel in the use of qualified

4

electronic health record technology.

5

(4)  Improving the secure electronic exchange of health

6

information.

7

(5)  Purchasing clinical decision support systems.

8

(e)  Limitations.--

9

(1)  The amount of a loan to a health care facility or

10

health care provider may not exceed:

11

(i)  $1,000,000 for a health care facility.

12

(ii)  $50,000 for a health care provider.

13

(2)  A grant under this subsection shall require a

14

matching commitment of 20% of the grant or loan which can be

15

in the form of cash or equivalent in-kind capital or

16

services.

17

(3)  No less than 25% of available funds shall be used

18

for loans to health care providers in counties of the fourth,

19

fifth, sixth, seventh or eighth class.

20

(4)  No less than 15% of available funds shall be used

<--

21

for loans to health care providers with 50 or fewer

22

practicing physicians.

23

(f)  Loan requirement.--A loan made under this section shall

24

require all of the following:

25

(1)  Have an interest rate that does not exceed the

26

market interest rate.

27

(2)  Require the principal and interest payments on each

28

loan to commence not later than one year after the date the

29

loan was awarded.

30

(3)  Require each loan to be fully amortized no later

- 19 -

 


1

than ten years after the date of the loan.

2

(g)  Health information technology regional extension

3

centers.--Nothing in this section shall prevent a health care

4

provider or health care facility from using a loan received

5

under this section to contract for services provided by a health

6

information technology regional extension center.

7

Section 503.  Fund.

8

(a)  Establishment.--A fund is established in the State

9

Treasury to be known as the Health Information Technology Fund.

10

The following shall be deposited in the fund:

11

(1)  Money appropriated to the fund by the General

12

Assembly.

13

(2)  Grants and loans received under the American

14

Recovery and Reinvestment Act of 2009 (Public Law 111-5, 123

15

Stat. 115) or other Federal law.

16

(3)  Earnings derived from the investment of the money in

17

the fund after deducting investment expenses.

18

(4)  Loan repayments of principal and interest.

19

(5)  Funds derived from any other source. 

20

Section 504.  Application.

21

(a)  Submission.--In order to receive a loan or grant under

22

this chapter, a health care facility or health care provider

23

center shall submit an application in a form and manner

24

prescribed by the department.

25

(b)  Requirements.--An application submitted under subsection

26

(a) shall set forth the manner in which the health information

27

technology system will do the following:

28

(1)  Comply with all criteria adopted by the National

29

Coordinator.

30

(2)  Protect privacy and security of health information.

- 20 -

 


1

(3)  Maintain and provide permitted access to health

2

information.

3

(4)  Improve the quality of health care by reducing

4

health care costs, serious preventable adverse events,

5

medical errors, inappropriate care and incomplete information

6

and the coordination of care and information among health

7

care providers, health insurers and other entities.

8

(5)  Ensure interoperability with other systems and

9

health care providers.

10

(6)  Provide consumer access to personal medical

11

information.

12

(7)  Comply with all Federal and State laws and

13

regulations relating to security and notification of any

14

breach of electronic medical records.

15

(8)  Ensure that the health care provider or health care

16

facility will become a meaningful user, as determined by the

17

Centers for Medicare and Medicaid Services, of a qualified

18

electronic health record.

19

Section 505.  Duties of department.

20

(a)  Duties.--The department shall:

<--

21

(1)  Administer the health information technology program

22

to provide grants and loans to eligible health care providers

23

and health care facilities.

24

(2)  Award grants and loans in all geographic areas of

25

this Commonwealth.

26

(3)  Require the use of standards for health information

27

technology that are consistent with those developed by the

28

National Coordinator and the Centers for Medicare and

29

Medicaid Services, when applicable.

30

(4)  Develop a grant and loan application form with input

- 21 -

 


1

from the Pennsylvania Health Information Exchange Authority,

2

the Department of Public Welfare, the Insurance Department,

3

the Department of Health and the Governor's Office.

4

(5)  Develop the criteria for awards of a grant and loan

5

with input from the Pennsylvania Health Information Exchange

6

Authority, the Department of Public Welfare, the Insurance

7

Department, the Department of Health and the Governor's

8

Office.

9

(6)  Provide a loan application form within 90 days of

10

the effective date of this section.

11

(7)  Ensure that health information technology policies

12

and programs of the department are coordinated with the

13

Pennsylvania Health Information Exchange Authority, the

14

Department of Public Welfare, the Department of Health, the

15

Governor's Office of Health Care Reform and other executive

16

branch agencies with Federal agencies.

17

(8)  Share appropriate data relating to the use of health

18

information technology systems with the Pennsylvania Health

19

Information Exchange Authority, the Department of Public

20

Welfare, the Health Care Cost Containment Council, the

21

Patient Safety Authority and other State agencies. Data

22

collected by a State agency relating to the operation of

23

health information technology systems in this Commonwealth

24

shall be shared with the department.

25

(9)  Give preference to applications which provide health

26

information technology systems that link multiple health care

27

providers and which provide direct patient access to health

28

care information.

29

(10)  Audit loans awarded under this act.

30

(11)  Provide ongoing assessment of the benefits and

- 22 -

 


1

costs of health information technology systems, including

2

information relating to reduction in medical errors,

3

reduction in physician visits, economic impact, efficiencies

4

and other information.

5

(12)  Develop a public information program to inform the

6

public of the efficiency and safety advantage of health

7

information technology.

8

(b)  Exceptions.--Federal grants or loans for health

<--

9

information technology shall be administered under the

10

conditions and requirements in the grant.

11

Section 506.  Accountability.

12

(a)  Information required.--Within one year of the award of a

13

loan under this act, the recipient shall provide all of the

14

following to the department:

15

(1)  A report on the status of the strategic plan and the

16

development of the health information technology system.

17

(2)  An accounting of the expenditure of funds from the

18

loan and from other sources.

19

(3)  A report on any reductions in medical errors,

20

increases in efficiency and advances in the delivery of

21

patient-centered medical care.

22

(b)  Annual report.--The department shall submit an annual

23

report to the chair and minority chair of the Banking and

24

Insurance Committee of the Senate and the chair and minority

25

chair of the Insurance Committee of the House of

26

Representatives, which report shall include the number and

27

amount of grants and loans awarded, a description of the system

28

being funded, total amount of funds spent and the projected

29

impact on the delivery of health care.

30

CHAPTER 20

- 23 -

 


1

MISCELLANEOUS

2

Section 2001.  Effective date.

3

This act shall take effect in 60 days.

- 24 -