PRIOR PRINTER'S NOS. 1313, 2922               PRINTER'S NO. 3286

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, LESCOVITZ, JAMES AND S. H. SMITH,
           APRIL 16, 1991

        AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, MARCH 18, 1992

                                     AN ACT

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

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

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




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