PRIOR PRINTER'S NO. 398 PRINTER'S NO. 955
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18 No.89), known as the Health Care Cost Containment Act, reenacted 19 and amended June 28, 1993 (P.L.146, No.34), is repealed. 20 Section 2.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 20030S0387B0955 - 12 -
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. A23L35SFL/20030S0387B0955 - 15 -