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        PRIOR PRINTER'S NO. 398                        PRINTER'S NO. 955

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 387 Session of 2003


        INTRODUCED BY M. WHITE, MOWERY, WENGER, KUKOVICH, PILEGGI, DENT,
           LAVALLE, MUSTO, ERICKSON, PUNT, CORMAN, SCHWARTZ, GREENLEAF,
           RAFFERTY, ORIE, KASUNIC, PICCOLA, TARTAGLIONE, MADIGAN,
           STACK, WONDERLING, WOZNIAK, RHOADES, THOMPSON AND BOSCOLA,
           MARCH 3, 2003

        SENATOR MOWERY, PUBLIC HEALTH AND WELFARE, AS AMENDED,
           JUNE 10, 2003

                                     AN ACT

     1  Amending the act of July 8, 1986 (P.L.408, No.89), entitled, as
     2     reenacted and amended, "An act providing for the creation of
     3     the Health Care Cost Containment Council, for its powers and
     4     duties, for health care cost containment through the
     5     collection and dissemination of data, for public
     6     accountability of health care costs and for health care for
     7     the indigent; and making an appropriation," repealing the      <--
     8     expiration date of the act. FURTHER PROVIDING FOR MEMBERSHIP   <--
     9     OF THE COUNCIL, ITS BYLAWS AND TERMS OF ITS MEMBERS, FOR
    10     POWERS AND DUTIES OF THE COUNCIL, FOR DATA SUBMISSION AND
    11     COLLECTION, FOR DATA DISSEMINATION AND PUBLICATION, FOR
    12     ACCESS TO COUNCIL DATA AND FOR ENFORCEMENT AND PENALTIES;
    13     REQUIRING A CERTAIN REPORT FROM THE LEGISLATIVE BUDGET AND
    14     FINANCE COMMITTEE; AND EXTENDING THE SUNSET DATE OF THE ACT.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Section 19 of the act of July 8, 1986 (P.L.408,    <--
    18  No.89), known as the Health Care Cost Containment Act, reenacted
    19  and amended June 28, 1993 (P.L.146, No.34), is repealed.
    20     Section 2.  This act shall take effect immediately.
    21     SECTION 1.  SECTIONS 4(B), (D) AND (F) AND 5(B) AND (D)(11)    <--
    22  OF THE ACT OF JULY 8, 1986 (P.L.408, NO.89), KNOWN AS THE HEALTH

     1  CARE COST CONTAINMENT ACT, REENACTED AND AMENDED JUNE 28, 1993
     2  (P.L.146, NO.34), ARE AMENDED TO READ:
     3  SECTION 4.  HEALTH CARE COST CONTAINMENT COUNCIL.
     4     * * *
     5     (B)  COMPOSITION.--THE COUNCIL SHALL CONSIST OF 21 VOTING
     6  MEMBERS, COMPOSED OF AND APPOINTED IN ACCORDANCE WITH THE
     7  FOLLOWING:
     8         (1)  THE SECRETARY OF HEALTH.
     9         (2)  THE SECRETARY OF PUBLIC WELFARE.
    10         (3)  THE INSURANCE COMMISSIONER.
    11         (3.1)  FOUR MEMBERS OF THE GENERAL ASSEMBLY, WHICH SHALL
    12     CONSIST OF THE CHAIRMAN AND MINORITY CHAIRMAN OF THE PUBLIC
    13     HEALTH AND WELFARE COMMITTEE OF THE SENATE AND THE CHAIRMAN
    14     AND MINORITY CHAIRMAN OF THE HEALTH AND HUMAN SERVICES
    15     COMMITTEE OF THE HOUSE OF REPRESENTATIVES. MEMBERS UNDER THIS
    16     PARAGRAPH MAY APPOINT A DESIGNEE TO ACT ON BEHALF OF THE
    17     MEMBER AT MEETINGS OF COMMITTEES, AS PROVIDED IN SUBSECTION
    18     (F). DESIGNEES SHALL BE COUNTED FOR PURPOSES OF DETERMINING A
    19     QUORUM.
    20         (4)  SIX REPRESENTATIVES OF THE BUSINESS COMMUNITY, AT
    21     LEAST ONE OF WHOM REPRESENTS SMALL BUSINESS, WHO ARE
    22     PURCHASERS OF HEALTH CARE AS DEFINED IN SECTION 3, NONE OF
    23     WHICH IS PRIMARILY INVOLVED IN THE PROVISION OF HEALTH CARE
    24     OR HEALTH INSURANCE, THREE OF WHICH SHALL BE APPOINTED BY THE
    25     PRESIDENT PRO TEMPORE OF THE SENATE AND THREE OF WHICH SHALL
    26     BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
    27     FROM A LIST OF TWELVE QUALIFIED PERSONS RECOMMENDED BY THE
    28     PENNSYLVANIA CHAMBER OF BUSINESS AND INDUSTRY. THREE NOMINEES
    29     SHALL BE REPRESENTATIVES OF SMALL BUSINESS.
    30         (5)  SIX REPRESENTATIVES OF ORGANIZED LABOR, THREE OF
    20030S0387B0955                  - 2 -     

     1     WHICH SHALL BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE
     2     SENATE AND THREE OF WHICH SHALL BE APPOINTED BY THE SPEAKER
     3     OF THE HOUSE OF REPRESENTATIVES FROM A LIST OF TWELVE
     4     QUALIFIED PERSONS RECOMMENDED BY THE PENNSYLVANIA AFL-CIO.
     5         (6)  ONE REPRESENTATIVE OF CONSUMERS WHO IS NOT PRIMARILY
     6     INVOLVED IN THE PROVISION OF HEALTH CARE OR HEALTH CARE
     7     INSURANCE, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
     8     QUALIFIED PERSONS RECOMMENDED JOINTLY BY THE SPEAKER OF THE
     9     HOUSE OF REPRESENTATIVES AND THE PRESIDENT PRO TEMPORE OF THE
    10     SENATE.
    11         (7)  [ONE REPRESENTATIVE] TWO REPRESENTATIVES OF
    12     HOSPITALS, APPOINTED BY THE GOVERNOR FROM A LIST OF [THREE]
    13     FIVE QUALIFIED HOSPITAL REPRESENTATIVES RECOMMENDED BY THE
    14     HOSPITAL AND HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA. THE
    15     [REPRESENTATIVE] REPRESENTATIVES UNDER THIS PARAGRAPH MAY
    16     EACH APPOINT TWO ADDITIONAL DELEGATES TO ACT FOR THE
    17     REPRESENTATIVE ONLY AT MEETINGS OF COMMITTEES, AS PROVIDED
    18     FOR IN SUBSECTION (F).
    19         (8)  ONE REPRESENTATIVE OF PHYSICIANS, APPOINTED BY THE
    20     GOVERNOR FROM A LIST OF THREE QUALIFIED PHYSICIAN
    21     REPRESENTATIVES RECOMMENDED JOINTLY BY THE PENNSYLVANIA
    22     MEDICAL SOCIETY AND THE PENNSYLVANIA OSTEOPATHIC MEDICAL
    23     SOCIETY. THE REPRESENTATIVE UNDER THIS PARAGRAPH MAY APPOINT
    24     TWO ADDITIONAL DELEGATES TO ACT FOR THE REPRESENTATIVE ONLY
    25     AT MEETINGS OF COMMITTEES, AS PROVIDED FOR IN SUBSECTION (F).
    26         (8.1)  ONE REPRESENTATIVE OF NURSES, APPOINTED BY THE
    27     GOVERNOR FROM A LIST OF THREE QUALIFIED REPRESENTATIVES
    28     RECOMMENDED BY THE PENNSYLVANIA STATE NURSES ASSOCIATION.
    29         (9)  ONE REPRESENTATIVE OF THE BLUE CROSS AND BLUE SHIELD
    30     PLANS IN PENNSYLVANIA, APPOINTED BY THE GOVERNOR FROM A LIST
    20030S0387B0955                  - 3 -     

     1     OF THREE QUALIFIED PERSONS RECOMMENDED JOINTLY BY THE BLUE
     2     CROSS AND BLUE SHIELD PLANS OF PENNSYLVANIA.
     3         (10)  ONE REPRESENTATIVE OF COMMERCIAL INSURANCE
     4     CARRIERS, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
     5     QUALIFIED PERSONS RECOMMENDED BY THE INSURANCE FEDERATION OF
     6     PENNSYLVANIA, INC.
     7         (11)  ONE REPRESENTATIVE OF HEALTH MAINTENANCE
     8     ORGANIZATIONS, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
     9     QUALIFIED PERSONS RECOMMENDED BY THE [PENNSYLVANIA
    10     ASSOCIATION OF HEALTH MAINTENANCE ORGANIZATIONS] MANAGED CARE
    11     ASSOCIATION OF PENNSYLVANIA.
    12         (12)  IN THE CASE OF EACH APPOINTMENT TO BE MADE FROM A
    13     LIST SUPPLIED BY A SPECIFIED ORGANIZATION, IT IS INCUMBENT
    14     UPON THAT ORGANIZATION TO CONSULT WITH AND PROVIDE A LIST
    15     WHICH REFLECTS THE INPUT OF OTHER EQUIVALENT ORGANIZATIONS
    16     REPRESENTING SIMILAR INTERESTS. EACH APPOINTING AUTHORITY
    17     WILL HAVE THE DISCRETION TO REQUEST ADDITIONS TO THE LIST
    18     ORIGINALLY SUBMITTED. ADDITIONAL NAMES WILL BE PROVIDED NOT
    19     LATER THAN 15 DAYS AFTER SUCH REQUEST. APPOINTMENTS SHALL BE
    20     MADE BY THE APPOINTING AUTHORITY NO LATER THAN 90 DAYS AFTER
    21     RECEIPT OF THE ORIGINAL LIST. IF, FOR ANY REASON, ANY
    22     SPECIFIED ORGANIZATION SUPPLYING A LIST SHOULD CEASE TO
    23     EXIST, THEN THE RESPECTIVE APPOINTING AUTHORITY SHALL SPECIFY
    24     A NEW EQUIVALENT ORGANIZATION TO FULFILL THE RESPONSIBILITIES
    25     OF THIS ACT.
    26     * * *
    27     (D)  QUORUM.--[ELEVEN] FOURTEEN MEMBERS, A MAJORITY OF WHICH
    28  IN ANY COMBINATION SHALL BE MADE UP OF REPRESENTATIVES OF
    29  BUSINESS AND LABOR, SHALL CONSTITUTE A QUORUM FOR THE
    30  TRANSACTION OF ANY BUSINESS, AND THE ACT BY THE MAJORITY OF THE
    20030S0387B0955                  - 4 -     

     1  MEMBERS PRESENT AT ANY MEETING IN WHICH THERE IS A QUORUM SHALL
     2  BE DEEMED TO BE THE ACT OF THE COUNCIL.
     3     * * *
     4     (F)  BYLAWS.--THE COUNCIL SHALL ADOPT BYLAWS, NOT
     5  INCONSISTENT WITH THIS ACT, AND MAY APPOINT SUCH COMMITTEES OR
     6  ELECT SUCH OFFICERS SUBORDINATE TO THOSE PROVIDED FOR IN
     7  SUBSECTION (C) AS IT DEEMS ADVISABLE. THE COUNCIL SHALL PROVIDE
     8  FOR THE APPROVAL AND PARTICIPATION OF ADDITIONAL DELEGATES
     9  APPOINTED UNDER SUBSECTION (B)(7) AND (8) SO THAT EACH
    10  ORGANIZATION REPRESENTED BY DELEGATES UNDER THOSE PARAGRAPHS
    11  SHALL NOT HAVE MORE THAN ONE VOTE ON ANY COMMITTEE TO WHICH THEY
    12  ARE APPOINTED. THE COUNCIL SHALL ALSO APPOINT A TECHNICAL
    13  ADVISORY GROUP WHICH SHALL, ON AN AD HOC BASIS, RESPOND TO
    14  ISSUES PRESENTED TO IT BY THE COUNCIL OR COMMITTEES OF THE
    15  COUNCIL AND SHALL MAKE RECOMMENDATIONS TO THE COUNCIL. THE
    16  TECHNICAL ADVISORY GROUP SHALL INCLUDE PHYSICIANS, RESEARCHERS
    17  AND BIOSTATISTICIANS. IN APPOINTING THE TECHNICAL ADVISORY
    18  GROUP, THE COUNCIL SHALL CONSULT WITH AND TAKE NOMINATIONS FROM
    19  THE REPRESENTATIVES OF THE HOSPITAL ASSOCIATION OF PENNSYLVANIA,
    20  THE PENNSYLVANIA MEDICAL SOCIETY, THE PENNSYLVANIA OSTEOPATHIC
    21  MEDICAL SOCIETY OR OTHER LIKE ORGANIZATIONS. AT ITS DISCRETION,
    22  NOMINATIONS SHALL BE APPROVED BY THE EXECUTIVE COMMITTEE OF THE
    23  COUNCIL. THE HOSPITAL AND HEALTHSYSTEM ASSOCIATION OF
    24  PENNSYLVANIA AND THE PENNSYLVANIA MEDICAL SOCIETY SHALL EACH BE
    25  AFFORDED ONE REPRESENTATIVE NOT SUBJECT TO EXECUTIVE COMMITTEE
    26  APPROVAL. IF THE SUBJECT MATTER OF ANY PROJECT EXCEEDS THE
    27  EXPERTISE OF THE TECHNICAL ADVISORY GROUP, PHYSICIANS IN
    28  APPROPRIATE SPECIALTIES WHO POSSESS CURRENT KNOWLEDGE OF THE
    29  ISSUE UNDER STUDY MAY BE CONSULTED. THE TECHNICAL ADVISORY GROUP
    30  SHALL ALSO REVIEW THE AVAILABILITY AND RELIABILITY OF SEVERITY
    20030S0387B0955                  - 5 -     

     1  OF ILLNESS MEASUREMENTS AS THEY RELATE TO SMALL HOSPITALS AND
     2  PSYCHIATRIC, REHABILITATION AND CHILDREN'S HOSPITALS AND SHALL
     3  MAKE RECOMMENDATIONS TO THE COUNCIL BASED UPON THIS REVIEW.
     4     * * *
     5  SECTION 5.  POWERS AND DUTIES OF THE COUNCIL.
     6     * * *
     7     (B)  RULES AND REGULATIONS.--THE COUNCIL [MAY, IN A MANNER
     8  PROVIDED BY LAW,] SHALL PROMULGATE RULES AND REGULATIONS IN
     9  ACCORDANCE WITH THE ACT OF JUNE 25, 1982 (P.L.633, NO.181),
    10  KNOWN AS THE REGULATORY REVIEW ACT, NECESSARY TO CARRY OUT ITS
    11  DUTIES UNDER THIS ACT.
    12     * * *
    13     (D)  GENERAL DUTIES AND FUNCTIONS.--THE COUNCIL IS HEREBY
    14  AUTHORIZED TO AND SHALL PERFORM THE FOLLOWING DUTIES AND
    15  FUNCTIONS:
    16         * * *
    17         [(11)  ADOPT, WITHIN ONE YEAR, A MODEL PATIENT ITEMIZED
    18     STATEMENT FOR ALL PROVIDERS, WHICH ITEMIZES ALL CHARGES FOR
    19     SERVICES, EQUIPMENT, SUPPLIES AND MEDICINE, DESIGNED TO BE
    20     MORE UNDERSTANDABLE THAN CURRENT PATIENT BILLS. EACH PROVIDER
    21     SHALL BE REQUIRED TO UTILIZE SAID MODEL PATIENT ITEMIZED
    22     STATEMENT FOR COVERED SERVICES WITHIN 90 DAYS OF ADOPTION OF
    23     SAID FORM BY THE COUNCIL. SUCH MODEL PATIENT ITEMIZED
    24     STATEMENTS SHALL BE WRITTEN IN LANGUAGE THAT IS
    25     UNDERSTANDABLE TO THE AVERAGE PERSON AND BE PRESENTED TO EACH
    26     PATIENT UPON DISCHARGE FROM A HEALTH CARE FACILITY OR
    27     PROVISION OF PATIENT SERVICES OR WITHIN A REASONABLE TIME
    28     THEREAFTER. PATIENTS MAY REQUEST A COPY OF THEIR PENNSYLVANIA
    29     UNIFORM CLAIMS AND BILLING FORM, AND, UPON REQUEST, THE
    30     PROVIDER SHALL FURNISH THIS FORM TO THE PATIENT WITHIN 30
    20030S0387B0955                  - 6 -     

     1     DAYS.]
     2         * * *
     3     SECTION 2.  SECTION 6(A) AND (D) OF THE ACT ARE AMENDED AND
     4  THE SECTION IS AMENDED BY ADDING A SUBSECTION TO READ:
     5  SECTION 6.  DATA SUBMISSION AND COLLECTION.
     6     (A)  SUBMISSION OF DATA.--
     7         (1)  THE COUNCIL IS HEREBY AUTHORIZED TO COLLECT AND DATA
     8     SOURCES ARE HEREBY REQUIRED TO SUBMIT, UPON REQUEST OF THE
     9     COUNCIL, ALL DATA REQUIRED IN THIS SECTION, ACCORDING TO
    10     UNIFORM SUBMISSION FORMATS, CODING SYSTEMS AND OTHER
    11     TECHNICAL SPECIFICATIONS NECESSARY TO RENDER THE INCOMING
    12     DATA SUBSTANTIALLY VALID, CONSISTENT, COMPATIBLE AND
    13     MANAGEABLE USING ELECTRONIC DATA PROCESSING ACCORDING TO DATA
    14     SUBMISSION SCHEDULES, SUCH SCHEDULES TO AVOID, TO THE EXTENT
    15     POSSIBLE, SUBMISSION OF IDENTICAL DATA FROM MORE THAN ONE
    16     DATA SOURCE, ESTABLISHED AND PROMULGATED BY THE COUNCIL IN
    17     REGULATIONS PURSUANT TO ITS AUTHORITY UNDER SECTION 5(B). IF
    18     PAYOR DATA IS REQUESTED BY THE COUNCIL, IT SHALL, TO THE
    19     EXTENT POSSIBLE, BE OBTAINED FROM PRIMARY PAYOR SOURCES.
    20         (2)  WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS
    21     PARAGRAPH, THE COUNCIL SHALL PUBLISH IN THE PENNSYLVANIA
    22     BULLETIN A LIST OF DISEASES OR MEDICAL CONDITIONS, NOT TO
    23     EXCEED 75, FOR WHICH DATA REQUIRED UNDER SUBSECTION (D) AND
    24     FORMER SECTION 21(C) SHALL BE NULL AND VOID FOR ANY DISEASES
    25     OR MEDICAL CONDITIONS NOT CONTAINED ON THE LIST. ALL OTHER
    26     DATA ELEMENTS SHALL CONTINUE TO BE REQUIRED FROM DATA
    27     SOURCES. THE COUNCIL SHALL REVIEW THIS LIST AT LEAST ONCE
    28     ANNUALLY AND, NOT MORE THAN ONCE ANNUALLY, MAY ADJUST THE
    29     NUMBER OF DISEASES OR MEDICAL CONDITIONS ON THE LIST BASE
    30     UPON THE RECOMMENDATION OF ITS TECHNICAL ADVISORY GROUP.
    20030S0387B0955                  - 7 -     

     1     * * *
     2     (D)  [PROVIDER QUALITY] QUALITY AND [PROVIDER] SERVICE
     3  EFFECTIVENESS DATA ELEMENTS.--[IN CARRYING OUT ITS DUTY TO
     4  COLLECT DATA ON PROVIDER QUALITY AND PROVIDER SERVICE
     5  EFFECTIVENESS UNDER SECTION 5(D)(4) AND SUBSECTION (C)(21), THE
     6  COUNCIL SHALL DEFINE A METHODOLOGY TO MEASURE PROVIDER SERVICE
     7  EFFECTIVENESS WHICH MAY INCLUDE ADDITIONAL DATA ELEMENTS TO BE
     8  SPECIFIED BY THE COUNCIL SUFFICIENT TO CARRY OUT ITS
     9  RESPONSIBILITIES UNDER SECTION 5(D)(4). THE COUNCIL MAY ADOPT A
    10  NATIONALLY RECOGNIZED METHODOLOGY OF QUANTIFYING AND COLLECTING
    11  DATA ON PROVIDER QUALITY AND PROVIDER SERVICE EFFECTIVENESS
    12  UNTIL SUCH TIME AS THE COUNCIL HAS THE CAPABILITY OF DEVELOPING
    13  ITS OWN METHODOLOGY AND STANDARD DATA ELEMENTS. THE COUNCIL
    14  SHALL INCLUDE IN THE PENNSYLVANIA UNIFORM CLAIMS AND BILLING
    15  FORM A FIELD CONSISTING OF THE DATA ELEMENTS REQUIRED PURSUANT
    16  TO SUBSECTION (C)(21) TO PROVIDE INFORMATION ON EACH PROVISION
    17  OF COVERED SERVICES SUFFICIENT TO PERMIT ANALYSIS OF PROVIDER
    18  QUALITY AND PROVIDER SERVICE EFFECTIVENESS WITHIN 180 DAYS OF
    19  COMMENCEMENT OF ITS OPERATIONS PURSUANT TO SECTION 4.] IN
    20  CARRYING OUT ITS RESPONSIBILITIES, THE COUNCIL MAY NOT REQUIRE
    21  HEALTH CARE INSURERS TO REPORT ON ADDITIONAL DATA ELEMENTS THAT
    22  ARE NOT REPORTED TO NATIONALLY RECOGNIZED ACCREDITING
    23  ORGANIZATIONS OR TO THE DEPARTMENT OF HEALTH OR THE INSURANCE
    24  DEPARTMENT IN QUARTERLY OR ANNUAL REPORTS. THE COUNCIL MAY NOT
    25  REQUIRE REPORTING BY HEALTH CARE INSURERS IN DIFFERENT FORMATS
    26  THAN ARE REQUIRED FOR REPORTING TO NATIONALLY RECOGNIZED
    27  ACCREDITING ORGANIZATIONS OR ON QUARTERLY OR ANNUAL REPORTS
    28  SUBMITTED TO THE DEPARTMENT OF HEALTH OR THE INSURANCE
    29  DEPARTMENT AS REQUIRED BY REGULATIONS OF EITHER DEPARTMENT. THE
    30  COUNCIL MAY ADOPT THE QUALITY FINDINGS AS REPORTED TO NATIONALLY
    20030S0387B0955                  - 8 -     

     1  RECOGNIZED ACCREDITING ORGANIZATIONS.
     2     * * *
     3     (F.1)  REVIEW AND CORRECTION OF DATA.--THE COUNCIL SHALL
     4  PROVIDE A PERIOD FOR DATA SOURCES TO REVIEW AND CORRECT THE DATA
     5  SUBMITTED BY THEM UNDER SECTION 6 THAT THE COUNCIL INTENDS TO
     6  PREPARE AND ISSUE IN REPORTS TO THE GENERAL ASSEMBLY, TO THE
     7  GENERAL PUBLIC OR IN SPECIAL STUDIES AND REPORTS UNDER SECTION
     8  11. WHEN CORRECTIONS ARE PROVIDED, THE COUNCIL SHALL CORRECT THE
     9  APPROPRIATE DATA IN ITS DATA FILES AND SUBSEQUENT REPORTS.
    10     * * *
    11     SECTION 3.  SECTIONS 7(A), 10(B)(5) AND 12(B) OF THE ACT ARE
    12  AMENDED TO READ:
    13  SECTION 7.  DATA DISSEMINATION AND PUBLICATION.
    14     [(A)  PUBLIC REPORTS.--SUBJECT TO THE RESTRICTIONS ON ACCESS
    15  TO COUNCIL DATA SET FORTH IN SECTION 10 AND UTILIZING THE DATA
    16  COLLECTED UNDER SECTION 6 AS WELL AS OTHER DATA, RECORDS AND
    17  MATTERS OF RECORD AVAILABLE TO IT, THE COUNCIL SHALL PREPARE AND
    18  ISSUE REPORTS TO THE GENERAL ASSEMBLY AND TO THE GENERAL PUBLIC,
    19  ACCORDING TO THE FOLLOWING PROVISIONS:
    20         (1)  THE COUNCIL SHALL, FOR EVERY PROVIDER WITHIN THE
    21     COMMONWEALTH AND WITHIN APPROPRIATE REGIONS AND SUBREGIONS
    22     WITHIN THE COMMONWEALTH AND FOR THOSE INPATIENT AND
    23     OUTPATIENT SERVICES WHICH, WHEN RANKED BY ORDER OF FREQUENCY,
    24     ACCOUNT FOR AT LEAST 65% OF ALL COVERED SERVICES AND WHICH,
    25     WHEN RANKED BY ORDER OF TOTAL PAYMENTS, ACCOUNT FOR AT LEAST
    26     65% OF TOTAL PAYMENTS, PREPARE AND ISSUE REPORTS THAT AT
    27     LEAST PROVIDE INFORMATION ON THE FOLLOWING:
    28             (I)  COMPARISONS AMONG ALL PROVIDERS OF PAYMENTS
    29         RECEIVED, CHARGES, POPULATION-BASED ADMISSION OR
    30         INCIDENCE RATES, AND PROVIDER SERVICE EFFECTIVENESS, SUCH
    20030S0387B0955                  - 9 -     

     1         COMPARISONS TO BE GROUPED ACCORDING TO DIAGNOSIS AND
     2         SEVERITY, AND TO IDENTIFY EACH PROVIDER BY NAME AND TYPE
     3         OR SPECIALTY.
     4             (II)  COMPARISONS AMONG ALL PROVIDERS, EXCEPT
     5         PHYSICIANS, OF INPATIENT AND OUTPATIENT CHARGES AND
     6         PAYMENTS FOR ROOM AND BOARD, ANCILLARY SERVICES, DRUGS,
     7         EQUIPMENT AND SUPPLIES AND TOTAL SERVICES, SUCH
     8         COMPARISONS TO BE GROUPED ACCORDING TO PROVIDER QUALITY
     9         AND PROVIDER SERVICE EFFECTIVENESS AND ACCORDING TO
    10         DIAGNOSIS AND SEVERITY, AND TO IDENTIFY EACH HEALTH CARE
    11         FACILITY BY NAME AND TYPE.
    12             (III)  UNTIL AND UNLESS A METHODOLOGY TO MEASURE
    13         PROVIDER QUALITY AND PROVIDER SERVICE EFFECTIVENESS
    14         PURSUANT TO SECTIONS 5(D)(4) AND 6(C) AND (D) IS
    15         AVAILABLE TO THE COUNCIL, COMPARISONS AMONG ALL
    16         PROVIDERS, GROUPED ACCORDING TO DIAGNOSIS, PROCEDURE AND
    17         SEVERITY, WHICH IDENTIFY FACILITIES BY NAME AND TYPE AND
    18         PHYSICIANS BY NAME AND SPECIALTY, OF CHARGES AND PAYMENTS
    19         RECEIVED, READMISSION RATES, MORTALITY RATES, MORBIDITY
    20         RATES AND INFECTION RATES. FOLLOWING ADOPTION OF THE
    21         METHODOLOGY SPECIFIED IN SECTIONS 5(D)(4) AND 6(C) AND
    22         (D), THE COUNCIL MAY, AT ITS DISCRETION, DISCONTINUE
    23         PUBLICATION OF THIS COMPONENT OF THE REPORT.
    24             (IV)  THE INCIDENCE RATE OF SELECTED MEDICAL OR
    25         SURGICAL PROCEDURES, THE PROVIDER SERVICE EFFECTIVENESS
    26         AND THE PAYMENTS RECEIVED FOR THOSE PROVIDERS, IDENTIFIED
    27         BY THE NAME AND TYPE OR SPECIALTY, FOR WHICH THESE
    28         ELEMENTS VARY SIGNIFICANTLY FROM THE NORMS FOR ALL
    29         PROVIDERS.
    30         (2)  IN PREPARING ITS REPORTS UNDER PARAGRAPH (1), THE
    20030S0387B0955                 - 10 -     

     1     COUNCIL SHALL ENSURE THAT FACTORS WHICH HAVE THE EFFECT OF
     2     EITHER REDUCING PROVIDER REVENUE OR INCREASING PROVIDER
     3     COSTS, AND OTHER FACTORS BEYOND A PROVIDER'S CONTROL WHICH
     4     REDUCE PROVIDER COMPETITIVENESS IN THE MARKET PLACE, ARE
     5     EXPLAINED IN THE REPORTS. IT SHALL ALSO ENSURE THAT ANY
     6     CLARIFICATIONS AND DISSENTS SUBMITTED BY INDIVIDUAL PROVIDERS
     7     UNDER SECTION 6(G) ARE NOTED IN ANY REPORTS THAT INCLUDE
     8     RELEASE OF DATA ON THAT INDIVIDUAL PROVIDER.
     9         (3)  THE COUNCIL SHALL, FOR ALL PROVIDERS WITHIN THE
    10     COMMONWEALTH AND WITHIN APPROPRIATE REGIONS AND SUBREGIONS
    11     WITHIN THE COMMONWEALTH, PREPARE AND ISSUE QUARTERLY REPORTS
    12     THAT AT LEAST PROVIDE INFORMATION ON THE NUMBER OF
    13     PHYSICIANS, BY SPECIALITY, ON THE STAFF OF EACH HOSPITAL OR
    14     AMBULATORY SERVICE FACILITY AND THOSE PHYSICIANS ON THE STAFF
    15     THAT ACCEPT MEDICARE ASSIGNMENT AS FULL PAYMENT AND THAT
    16     ACCEPT MEDICAL ASSISTANCE PATIENTS.
    17         (4)  THE COUNCIL SHALL PUBLISH ALL REPORTS REQUIRED IN
    18     THIS SECTION IN THE PENNSYLVANIA BULLETIN AND SHALL PUBLISH,
    19     IN AT LEAST ONE NEWSPAPER OF GENERAL CIRCULATION IN EACH
    20     SUBREGION WITHIN THE COMMONWEALTH, REPORTS ON THE PROVIDERS
    21     IN THAT SUBREGION AND SUBREGIONS ADJACENT TO IT. IN ADDITION,
    22     THE COUNCIL SHALL ADVERTISE ANNUALLY THE AVAILABILITY OF
    23     THESE REPORTS AND THE CHARGE FOR DUPLICATION IN THE
    24     PENNSYLVANIA BULLETIN AND IN AT LEAST ONE NEWSPAPER OF
    25     GENERAL CIRCULATION IN EACH SUBREGION WITHIN THE COMMONWEALTH
    26     AT LEAST ONCE IN EACH CALENDAR QUARTER.]
    27     (A)  PUBLIC REPORTS.--SUBJECT TO THE RESTRICTIONS ON ACCESS
    28  TO COUNCIL DATA SET FORTH IN SECTION 10 AND UTILIZING THE DATA
    29  COLLECTED UNDER SECTION 6 AS WELL AS OTHER DATA, RECORDS AND
    30  MATTERS OF RECORD AVAILABLE TO IT, THE COUNCIL SHALL PREPARE AND
    20030S0387B0955                 - 11 -     

     1  ISSUE REPORTS TO THE GENERAL ASSEMBLY AND TO THE GENERAL PUBLIC,
     2  ACCORDING TO THE FOLLOWING PROVISIONS:
     3         (1)  THE COUNCIL SHALL, FOR EVERY PROVIDER OF BOTH
     4     INPATIENT AND OUTPATIENT SERVICES WITHIN THIS COMMONWEALTH
     5     AND WITHIN APPROPRIATE REGIONS AND SUBREGIONS, PREPARE AND
     6     ISSUE REPORTS ON PROVIDER QUALITY AND EFFECTIVENESS ON
     7     DISEASES OR PROCEDURES THAT, WHEN RANKED BY VOLUME, COST,
     8     PAYMENT AND HIGH VARIATION IN OUTCOME, REPRESENT THE BEST
     9     OPPORTUNITY TO IMPROVE OVERALL PROVIDER QUALITY, IMPROVE
    10     PATIENT SAFETY AND PROVIDE OPPORTUNITIES FOR COST REDUCTION.
    11     THESE REPORTS SHALL PROVIDE COMPARATIVE INFORMATION ON THE
    12     FOLLOWING:
    13             (I)  DIFFERENCES IN MORTALITY RATES; DIFFERENCES IN
    14         LENGTH OF STAY; DIFFERENCES IN COMPLICATION RATES;
    15         DIFFERENCES IN READMISSION RATES; DIFFERENCES IN
    16         INFECTION RATES; AND OTHER COMPARATIVE OUTCOME MEASURES
    17         THE COUNCIL MAY DEVELOP THAT WILL ALLOW PURCHASERS,
    18         PROVIDERS AND CONSUMERS TO MAKE PURCHASING AND QUALITY
    19         IMPROVEMENT DECISIONS BASED UPON QUALITY PATIENT CARE AND
    20         TO RESTRAIN COSTS.
    21             (II)  THE INCIDENCE RATE OF SELECTED MEDICAL OR
    22         SURGICAL PROCEDURES, THE PROVIDER SERVICE EFFECTIVENESS
    23         AND THE PAYMENTS RECEIVED FOR THOSE PROVIDERS, IDENTIFIED
    24         BY THE NAME AND TYPE OR SPECIALTY, FOR WHICH THESE
    25         ELEMENTS VARY SIGNIFICANTLY FROM THE NORMS FOR ALL
    26         PROVIDERS.
    27         (2)  IN PREPARING ITS REPORTS UNDER PARAGRAPH (1), THE
    28     COUNCIL SHALL ENSURE THAT FACTORS WHICH HAVE THE EFFECT OF
    29     EITHER REDUCING PROVIDER REVENUE OR INCREASING PROVIDER COSTS
    30     AND OTHER FACTORS BEYOND A PROVIDER'S CONTROL WHICH REDUCE
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     1     PROVIDER COMPETITIVENESS IN THE MARKETPLACE ARE EXPLAINED IN
     2     THE REPORTS. THE COUNCIL SHALL ALSO ENSURE THAT ANY
     3     CLARIFICATIONS AND DISSENTS SUBMITTED BY INDIVIDUAL PROVIDERS
     4     UNDER SECTION 6(G) ARE NOTED IN ANY REPORTS THAT INCLUDE
     5     RELEASE OF DATA ON THAT INDIVIDUAL PROVIDER.
     6     * * *
     7  SECTION 10.  ACCESS TO COUNCIL DATA.
     8     * * *
     9     (B)  LIMITATIONS ON ACCESS.--UNLESS SPECIFICALLY PROVIDED FOR
    10  IN THIS ACT, NEITHER THE COUNCIL NOR ANY CONTRACTING SYSTEM
    11  VENDOR SHALL RELEASE AND NO DATA SOURCE, PERSON, MEMBER OF THE
    12  PUBLIC OR OTHER USER OF ANY DATA OF THE COUNCIL SHALL GAIN
    13  ACCESS TO:
    14         * * *
    15         (5)  ANY RAW DATA DISCLOSING DISCOUNTS OR DIFFERENTIALS
    16     BETWEEN PAYMENTS ACCEPTED BY PROVIDERS FOR SERVICES AND THEIR
    17     BILLED CHARGES OBTAINED BY IDENTIFIED PAYORS FROM IDENTIFIED
    18     PROVIDERS [UNLESS COMPARABLE DATA ON ALL OTHER PAYORS IS ALSO
    19     RELEASED AND THE COUNCIL DETERMINES THAT THE RELEASE OF SUCH
    20     INFORMATION IS NOT PREJUDICIAL OR INEQUITABLE TO ANY
    21     INDIVIDUAL PAYOR OR PROVIDER OR GROUP THEREOF. IN MAKING SUCH
    22     DETERMINATION THE COUNCIL SHALL CONSIDER THAT IT IS PRIMARILY
    23     CONCERNED WITH THE ANALYSIS AND DISSEMINATION OF PAYMENTS TO
    24     PROVIDERS, NOT WITH DISCOUNTS].
    25     * * *
    26  SECTION 12.  ENFORCEMENT; PENALTY.
    27     * * *
    28     (B)  PENALTY.--
    29         (1)  ANY PERSON WHO FAILS TO SUPPLY DATA PURSUANT TO
    30     SECTION 6 [COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND
    20030S0387B0955                 - 13 -     

     1     SHALL, UPON CONVICTION, BE SENTENCED TO PAY A FINE NOT TO
     2     EXCEED $1,000. EACH DAY ON WHICH THE REQUIRED DATA IS NOT
     3     SUBMITTED CONSTITUTES A SEPARATE OFFENSE UNDER THIS
     4     PARAGRAPH.] MAY BE ASSESSED A CIVIL PENALTY NOT TO EXCEED
     5     $1,000 FOR EACH DAY THE DATA IS NOT SUBMITTED.
     6         (2)  ANY PERSON WHO[, AFTER BEING SENTENCED UNDER
     7     PARAGRAPH (1), FAILS TO SUPPLY DATA] KNOWINGLY SUBMITS
     8     INACCURATE DATA PURSUANT TO SECTION 6 COMMITS A MISDEMEANOR
     9     OF THE THIRD DEGREE AND SHALL, UPON CONVICTION, BE SENTENCED
    10     TO PAY A FINE OF $10,000 OR TO IMPRISONMENT FOR NOT MORE THAN
    11     FIVE YEARS, OR BOTH.
    12     SECTION 4.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
    13  SECTION 17.2.  LEGISLATIVE BUDGET AND FINANCE COMMITTEE REPORT.
    14     (A)  GENERAL RULE.--BY DECEMBER 31, 2006, THE LEGISLATIVE
    15  BUDGET AND FINANCE COMMITTEE SHALL COMPLETE A WRITTEN REPORT
    16  EVALUATING THE MANAGEMENT, PERFORMANCE, VISIBILITY, AWARENESS
    17  AND PERFORMANCE OF THE COUNCIL AND SHALL SUBMIT THE REPORT TO
    18  THE PUBLIC HEALTH AND WELFARE COMMITTEE OF THE SENATE AND THE
    19  HEALTH AND HUMAN SERVICES COMMITTEE OF THE HOUSE OF
    20  REPRESENTATIVES. THE REPORT SHALL DETERMINE WHETHER THE COUNCIL
    21  IS:
    22         (1)  CONDUCTING AUTHORIZED ACTIVITIES IN A MANNER
    23     CONSISTENT WITH ACCOMPLISHING THE OBJECTIVES INTENDED BY THE
    24     GENERAL ASSEMBLY.
    25         (2)  CONDUCTING ACTIVITIES AND EXPENDING FUNDS MADE
    26     AVAILABLE IN A FAITHFUL, EFFICIENT, ECONOMICAL AND EFFECTIVE
    27     MANNER.
    28     (B)  CONTENTS OF REPORT.--THE REPORT SHALL INCLUDE, BUT NOT
    29  BE LIMITED TO, DISCUSSION OF THE FOLLOWING CRITERIA:
    30         (1)  WHETHER THERE IS OVERLAP OR DUPLICATION OF EFFORT BY
    20030S0387B0955                 - 14 -     

     1     OTHER AGENCIES.
     2         (2)  WHETHER THERE IS A MORE ECONOMICAL WAY OF
     3     ACCOMPLISHING THE OBJECTIVES OF THE COUNCIL.
     4         (3)  WHETHER THERE IS A DEMONSTRATED NEED, BASED ON
     5     SERVICE TO THE PUBLIC, FOR THE CONTINUING EXISTENCE OF THE
     6     COUNCIL.
     7         (4)  WHETHER THE OPERATION OF THE COUNCIL HAS BEEN IN THE
     8     PUBLIC INTEREST.
     9         (5)  WHETHER THE COUNCIL HAS ENCOURAGED PUBLIC
    10     PARTICIPATION IN THE MAKING OF ITS RULES AND DECISIONS OR
    11     WHETHER THE COUNCIL HAS PERMITTED PARTICIPATION SOLELY BY THE
    12     PERSONS ITS REGULATES.
    13         (6)  WHETHER THERE IS AN ALTERNATE, LESS RESTRICTIVE
    14     METHOD OF PROVIDING THE SAME SERVICES TO THE PUBLIC.
    15         (7)  SUCH OTHER CRITERIA AS MAY BE ESTABLISHED BY THE
    16     STANDING COMMITTEES.
    17     SECTION 5.  SECTION 19 OF THE ACT IS AMENDED TO READ:
    18  SECTION 19.  SUNSET.
    19     THIS ACT SHALL EXPIRE JUNE 30, [2003] 2009, UNLESS REENACTED
    20  PRIOR TO [THAT DATE] DECEMBER 31, 2008.
    21     SECTION 6.  THIS ACT SHALL TAKE EFFECT AS FOLLOWS:
    22         (1)  THE AMENDMENT OF SECTION 19 OF THE ACT SHALL TAKE
    23     EFFECT IMMEDIATELY.
    24         (2)  THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.
    25         (3)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60
    26     DAYS.



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