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                                 HOUSE AMENDED
        PRIOR PRINTER'S NOS. 398, 955, 969,           PRINTER'S NO. 1045
        1040

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

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 30, 2003

                                     AN ACT

     1  Amending REENACTING AND AMENDING the act of July 8, 1986          <--
     2     (P.L.408, No.89), entitled, as reenacted and amended, "An act
     3     providing for the creation of the Health Care Cost
     4     Containment Council, for its powers and duties, for health
     5     care cost containment through the collection and
     6     dissemination of data, for public accountability of health
     7     care costs and for health care for the indigent; and making
     8     an appropriation," further providing for membership of the     <--
     9     council, its bylaws and terms of its members, for powers and
    10     duties of the council, for data submission and collection,
    11     for data dissemination and publication, for access to council
    12     data and for enforcement and penalties; requiring a certain
    13     report from the Legislative Budget and Finance Committee; and
    14     extending the sunset date of the act. FOR THE HEALTH CARE      <--
    15     COST CONTAINMENT COUNCIL, FOR POWERS AND DUTIES OF THE
    16     COUNCIL, FOR DATA SUBMISSION AND COLLECTION, FOR DATA          <--
    17     DISSEMINATION, FOR MANDATED HEALTH BENEFITS, FOR ACCESS TO
    18     COUNCIL DATA, FOR ENFORCEMENT AND PENALTY AND FOR EXPIRATION;
    19     AND PROVIDING FOR PENALTIES.

    20     The General Assembly of the Commonwealth of Pennsylvania
    21  hereby enacts as follows:
    22     Section 1.  Sections 4(b), (d) and (f) and 5(b) and (d)(11)    <--
    23  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] 28
     6  voting 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 the council and of committees, as
    18     provided in subsection (f). Designees shall be counted for
    19     purposes of determining a 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
    20030S0387B1045                  - 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, one of which shall represent rural hospitals,
    13     appointed by the Governor from a list of [three] five
    14     qualified hospital representatives recommended by the
    15     Hospital and Healthsystem Association of Pennsylvania. The
    16     [representative] representatives under this paragraph may
    17     each appoint two additional delegates to act for the
    18     representative only at meetings of committees, as provided
    19     for in subsection (f).
    20         (8)  [One representative] Two representatives of
    21     physicians, appointed by the Governor from a list of [three]
    22     five qualified physician representatives recommended jointly
    23     by the Pennsylvania Medical Society and the Pennsylvania
    24     Osteopathic Medical Society. The [representative]
    25     representatives under this paragraph may each appoint two
    26     additional delegates to act for the representative only at
    27     meetings of committees, as provided for in subsection (f).
    28         (8.1)  One representative of nurses, appointed by the
    29     Governor from a list of three qualified representatives
    30     recommended by the Pennsylvania State Nurses Association.
    20030S0387B1045                  - 3 -     

     1         (9)  One representative of the Blue Cross and Blue Shield
     2     plans in Pennsylvania, appointed by the Governor from a list
     3     of three qualified persons recommended jointly by the Blue
     4     Cross and Blue Shield plans of Pennsylvania.
     5         (10)  One representative of commercial insurance
     6     carriers, appointed by the Governor from a list of three
     7     qualified persons recommended by the Insurance Federation of
     8     Pennsylvania, Inc.
     9         (11)  One representative of health maintenance
    10     organizations, appointed by the Governor from a list of three
    11     qualified persons recommended by the [Pennsylvania
    12     Association of Health Maintenance Organizations] Managed Care
    13     Association of Pennsylvania.
    14         (12)  In the case of each appointment to be made from a
    15     list supplied by a specified organization, it is incumbent
    16     upon that organization to consult with and provide a list
    17     which reflects the input of other equivalent organizations
    18     representing similar interests. Each appointing authority
    19     will have the discretion to request additions to the list
    20     originally submitted. Additional names will be provided not
    21     later than 15 days after such request. Appointments shall be
    22     made by the appointing authority no later than 90 days after
    23     receipt of the original list. If, for any reason, any
    24     specified organization supplying a list should cease to
    25     exist, then the respective appointing authority shall specify
    26     a new equivalent organization to fulfill the responsibilities
    27     of this act.
    28     * * *
    29     (d)  Quorum.--[Eleven] Fifteen members, [a majority] six of
    30  which in any combination shall be made up of representatives of
    20030S0387B1045                  - 4 -     

     1  business and labor, shall constitute a quorum for the
     2  transaction of any business, and the act by the majority of the
     3  members present at any meeting in which there is a quorum shall
     4  be deemed to be the act of the council.
     5     * * *
     6     (f)  Bylaws.--The council shall adopt bylaws, not
     7  inconsistent with this act, and may appoint such committees or
     8  elect such officers subordinate to those provided for in
     9  subsection (c) as it deems advisable. The council shall provide
    10  for the approval and participation of additional delegates
    11  appointed under subsection [(b)(7)] (b)(3.1), (7) and (8) so
    12  that each [organization] member represented by delegates under
    13  those paragraphs shall not have more than one vote on any
    14  committee to which they are appointed. The council shall also
    15  appoint a technical advisory group which shall, on an ad hoc
    16  basis, respond to issues presented to it by the council or
    17  committees of the council and shall make recommendations to the
    18  council. The technical advisory group shall include physicians,
    19  researchers and biostatisticians. In appointing the technical
    20  advisory group, the council shall consult with and take
    21  nominations from the representatives of the Hospital Association
    22  of Pennsylvania, the Pennsylvania Medical Society, the
    23  Pennsylvania Osteopathic Medical Society or other like
    24  organizations. At its discretion, nominations shall be approved
    25  by the executive committee of the council. The Hospital and
    26  Healthsystem Association of Pennsylvania and the Pennsylvania
    27  Medical Society shall each be afforded one representative not
    28  subject to executive committee approval. If the subject matter
    29  of any project exceeds the expertise of the technical advisory
    30  group, physicians in appropriate specialties who possess current
    20030S0387B1045                  - 5 -     

     1  knowledge of the issue under study may be consulted. The
     2  technical advisory group shall also review the availability and
     3  reliability of severity of illness measurements as they relate
     4  to small hospitals and psychiatric, rehabilitation and
     5  children's hospitals and shall make recommendations to the
     6  council based upon this review.
     7     * * *
     8  Section 5.  Powers and duties of the council.
     9     * * *
    10     (b)  Rules and regulations.--The council [may, in a manner
    11  provided by law,] shall promulgate rules and regulations in
    12  accordance with the act of June 25, 1982 (P.L.633, No.181),
    13  known as the Regulatory Review Act, necessary to carry out its
    14  duties under this act.
    15     * * *
    16     (d)  General duties and functions.--The council is hereby
    17  authorized to and shall perform the following duties and
    18  functions:
    19         * * *
    20         [(11)  Adopt, within one year, a model patient itemized
    21     statement for all providers, which itemizes all charges for
    22     services, equipment, supplies and medicine, designed to be
    23     more understandable than current patient bills. Each provider
    24     shall be required to utilize said model patient itemized
    25     statement for covered services within 90 days of adoption of
    26     said form by the council. Such model patient itemized
    27     statements shall be written in language that is
    28     understandable to the average person and be presented to each
    29     patient upon discharge from a health care facility or
    30     provision of patient services or within a reasonable time
    20030S0387B1045                  - 6 -     

     1     thereafter. Patients may request a copy of their Pennsylvania
     2     Uniform Claims and Billing Form, and, upon request, the
     3     provider shall furnish this form to the patient within 30
     4     days.]
     5         * * *
     6     Section 2.  Section 6(a) and (d) of the act are amended and
     7  the section is amended by adding a subsection to read:
     8  Section 6.  Data submission and collection.
     9     (a)  Submission of data.--
    10         (1)  The council is hereby authorized to collect and data
    11     sources are hereby required to submit, upon request of the
    12     council, all data required in this section, according to
    13     uniform submission formats, coding systems and other
    14     technical specifications necessary to render the incoming
    15     data substantially valid, consistent, compatible and
    16     manageable using electronic data processing according to data
    17     submission schedules, such schedules to avoid, to the extent
    18     possible, submission of identical data from more than one
    19     data source, established and promulgated by the council in
    20     regulations pursuant to its authority under section 5(b). If
    21     payor data is requested by the council, it shall, to the
    22     extent possible, be obtained from primary payor sources.
    23         (2)  Within 90 days of the effective date of this
    24     paragraph, the council shall publish in the Pennsylvania
    25     Bulletin a list of diseases, procedures or medical
    26     conditions, not to exceed 75, for which data required under
    27     subsections (c)(21) and (d) shall be required. The chosen
    28     list shall not represent more than 50% of total hospital
    29     admissions, based upon the previous year's data. Subsequent
    30     to the publication of said list, any data submission
    20030S0387B1045                  - 7 -     

     1     requirements under subsections (c)(21) and (d), previously in
     2     effect, will be null and void for any diseases, procedures or
     3     medical conditions not contained on said list. All other data
     4     elements shall continue to be required from data sources. The
     5     council shall review this list at least once annually and may
     6     adjust the list of diseases, procedures or medical
     7     conditions, subject to the original limitation of 75
     8     diseases, procedures or medical conditions and 50% of total
     9     hospital admissions.
    10     * * *
    11     (d)  [Provider quality] Quality and [provider] service
    12  effectiveness data elements.--In carrying out its duty to
    13  collect data on provider quality and provider service
    14  effectiveness under section 5(d)(4) and subsection (c)(21), the
    15  council shall define a methodology to measure provider service
    16  effectiveness which may include additional data elements to be
    17  specified by the council sufficient to carry out its
    18  responsibilities under section 5(d)(4). The council may adopt a
    19  nationally recognized methodology of quantifying and collecting
    20  data on provider quality and provider service effectiveness
    21  until such time as the council has the capability of developing
    22  its own methodology and standard data elements. The council
    23  shall include in the Pennsylvania Uniform Claims and Billing
    24  Form a field consisting of the data elements required pursuant
    25  to subsection (c)(21) to provide information on each provision
    26  of covered services sufficient to permit analysis of provider
    27  quality and provider service effectiveness within 180 days of
    28  commencement of its operations pursuant to section 4. In
    29  carrying out its responsibilities, the council may not require
    30  health care insurers to report on additional data elements that
    20030S0387B1045                  - 8 -     

     1  are not reported to nationally recognized accrediting
     2  organizations or to the Department of Health or the Insurance
     3  Department in quarterly or annual reports. The council may not
     4  require reporting by health care insurers in different formats
     5  than are required for reporting to nationally recognized
     6  accrediting organizations or on quarterly or annual reports
     7  submitted to the Department of Health or the Insurance
     8  Department as required by regulations of either department. The
     9  council may adopt the quality findings as reported to nationally
    10  recognized accrediting organizations.
    11     * * *
    12     (f.1)  Review and correction of data.--The council shall
    13  provide a reasonable period for data sources to review and
    14  correct the data submitted by them under section 6 that the
    15  council intends to prepare and issue in reports to the General
    16  Assembly, to the general public or in special studies and
    17  reports under section 11. When corrections are provided, the
    18  council shall correct the appropriate data in its data files and
    19  subsequent reports.
    20     * * *
    21     Section 3.  Sections 7(a), 10(b)(5) and 12(b) of the act are
    22  amended to read:
    23  Section 7.  Data dissemination and publication.
    24     [(a)  Public reports.--Subject to the restrictions on access
    25  to council data set forth in section 10 and utilizing the data
    26  collected under section 6 as well as other data, records and
    27  matters of record available to it, the council shall prepare and
    28  issue reports to the General Assembly and to the general public,
    29  according to the following provisions:
    30         (1)  The council shall, for every provider within the
    20030S0387B1045                  - 9 -     

     1     Commonwealth and within appropriate regions and subregions
     2     within the Commonwealth and for those inpatient and
     3     outpatient services which, when ranked by order of frequency,
     4     account for at least 65% of all covered services and which,
     5     when ranked by order of total payments, account for at least
     6     65% of total payments, prepare and issue reports that at
     7     least provide information on the following:
     8             (i)  Comparisons among all providers of payments
     9         received, charges, population-based admission or
    10         incidence rates, and provider service effectiveness, such
    11         comparisons to be grouped according to diagnosis and
    12         severity, and to identify each provider by name and type
    13         or specialty.
    14             (ii)  Comparisons among all providers, except
    15         physicians, of inpatient and outpatient charges and
    16         payments for room and board, ancillary services, drugs,
    17         equipment and supplies and total services, such
    18         comparisons to be grouped according to provider quality
    19         and provider service effectiveness and according to
    20         diagnosis and severity, and to identify each health care
    21         facility by name and type.
    22             (iii)  Until and unless a methodology to measure
    23         provider quality and provider service effectiveness
    24         pursuant to sections 5(d)(4) and 6(c) and (d) is
    25         available to the council, comparisons among all
    26         providers, grouped according to diagnosis, procedure and
    27         severity, which identify facilities by name and type and
    28         physicians by name and specialty, of charges and payments
    29         received, readmission rates, mortality rates, morbidity
    30         rates and infection rates. Following adoption of the
    20030S0387B1045                 - 10 -     

     1         methodology specified in sections 5(d)(4) and 6(c) and
     2         (d), the council may, at its discretion, discontinue
     3         publication of this component of the report.
     4             (iv)  The incidence rate of selected medical or
     5         surgical procedures, the provider service effectiveness
     6         and the payments received for those providers, identified
     7         by the name and type or specialty, for which these
     8         elements vary significantly from the norms for all
     9         providers.
    10         (2)  In preparing its reports under paragraph (1), the
    11     council shall ensure that factors which have the effect of
    12     either reducing provider revenue or increasing provider
    13     costs, and other factors beyond a provider's control which
    14     reduce provider competitiveness in the market place, are
    15     explained in the reports. It shall also ensure that any
    16     clarifications and dissents submitted by individual providers
    17     under section 6(g) are noted in any reports that include
    18     release of data on that individual provider.
    19         (3)  The council shall, for all providers within the
    20     Commonwealth and within appropriate regions and subregions
    21     within the Commonwealth, prepare and issue quarterly reports
    22     that at least provide information on the number of
    23     physicians, by speciality, on the staff of each hospital or
    24     ambulatory service facility and those physicians on the staff
    25     that accept Medicare assignment as full payment and that
    26     accept Medical Assistance patients.
    27         (4)  The council shall publish all reports required in
    28     this section in the Pennsylvania Bulletin and shall publish,
    29     in at least one newspaper of general circulation in each
    30     subregion within the Commonwealth, reports on the providers
    20030S0387B1045                 - 11 -     

     1     in that subregion and subregions adjacent to it. In addition,
     2     the council shall advertise annually the availability of
     3     these reports and the charge for duplication in the
     4     Pennsylvania Bulletin and in at least one newspaper of
     5     general circulation in each subregion within the Commonwealth
     6     at least once in each calendar quarter.]
     7     (a)  Public reports.--Subject to the restrictions on access
     8  to council data set forth in section 10 and utilizing the data
     9  collected under section 6 as well as other data, records and
    10  matters of record available to it, the council shall prepare and
    11  issue reports to the General Assembly and to the general public,
    12  according to the following provisions:
    13         (1)  The council shall, for every provider of both
    14     inpatient and outpatient services within this Commonwealth
    15     and within appropriate regions and subregions, prepare and
    16     issue reports on provider quality and effectiveness on
    17     diseases or procedures that, when ranked by volume, cost,
    18     payment and high variation in outcome, represent the best
    19     opportunity to improve overall provider quality, improve
    20     patient safety and provide opportunities for cost reduction.
    21     These reports shall provide comparative information on the
    22     following:
    23             (i)  Differences in mortality rates; differences in
    24         length of stay; differences in complication rates;
    25         differences in readmission rates; differences in
    26         infection rates; and other comparative outcome measures
    27         the council may develop that will allow purchasers,
    28         providers and consumers to make purchasing and quality
    29         improvement decisions based upon quality patient care and
    30         to restrain costs.
    20030S0387B1045                 - 12 -     

     1             (ii)  The incidence rate of selected medical or
     2         surgical procedures, the provider service effectiveness
     3         and the payments received for those providers, identified
     4         by the name and type or specialty, for which these
     5         elements vary significantly from the norms for all
     6         providers.
     7         (2)  In preparing its reports under paragraph (1), the
     8     council shall ensure that factors which have the effect of
     9     either reducing provider revenue or increasing provider costs
    10     and other factors beyond a provider's control which reduce
    11     provider competitiveness in the marketplace are explained in
    12     the reports. The council shall also ensure that any
    13     clarifications and dissents submitted by individual providers
    14     under section 6(g) are noted in any reports that include
    15     release of data on that individual provider.
    16     * * *
    17  Section 10.  Access to council data.
    18     * * *
    19     (b)  Limitations on access.--Unless specifically provided for
    20  in this act, neither the council nor any contracting system
    21  vendor shall release and no data source, person, member of the
    22  public or other user of any data of the council shall gain
    23  access to:
    24         * * *
    25         (5)  Any raw data disclosing discounts or differentials
    26     between payments accepted by providers for services and their
    27     billed charges obtained by identified payors from identified
    28     providers [unless comparable data on all other payors is also
    29     released and the council determines that the release of such
    30     information is not prejudicial or inequitable to any
    20030S0387B1045                 - 13 -     

     1     individual payor or provider or group thereof. In making such
     2     determination the council shall consider that it is primarily
     3     concerned with the analysis and dissemination of payments to
     4     providers, not with discounts].
     5     * * *
     6  Section 12.  Enforcement; penalty.
     7     * * *
     8     (b)  Penalty.--
     9         (1)  Any person who fails to supply data pursuant to
    10     section 6 [commits a misdemeanor of the third degree and
    11     shall, upon conviction, be sentenced to pay a fine not to
    12     exceed $1,000. Each day on which the required data is not
    13     submitted constitutes a separate offense under this
    14     paragraph.] may be assessed a civil penalty not to exceed
    15     $1,000 for each day the data is not submitted.
    16         (2)  Any person who[, after being sentenced under
    17     paragraph (1), fails to supply data] knowingly submits
    18     inaccurate data pursuant to section 6 commits a misdemeanor
    19     of the third degree and shall, upon conviction, be sentenced
    20     to pay a fine of $10,000 or to imprisonment for not more than
    21     five years, or both.
    22     Section 4.  The act is amended by adding a section to read:
    23  Section 17.2.  Legislative Budget and Finance Committee Report.
    24     (a)  General rule.--By December 31, 2006, the Legislative
    25  Budget and Finance Committee shall complete a written report
    26  evaluating the management, performance, visibility, awareness
    27  and performance of the council and shall submit the report to
    28  the Public Health and Welfare Committee of the Senate and the
    29  Health and Human Services Committee of the House of
    30  Representatives. The report shall determine whether the council
    20030S0387B1045                 - 14 -     

     1  is:
     2         (1)  Conducting authorized activities in a manner
     3     consistent with accomplishing the objectives intended by the
     4     General Assembly.
     5         (2)  Conducting activities and expending funds made
     6     available in a faithful, efficient, economical and effective
     7     manner.
     8     (b)  Contents of report.--The report shall include, but not
     9  be limited to, discussion of the following criteria:
    10         (1)  Whether there is overlap or duplication of effort by
    11     other agencies.
    12         (2)  Whether there is a more economical way of
    13     accomplishing the objectives of the council.
    14         (3)  Whether there is a demonstrated need, based on
    15     service to the public, for the continuing existence of the
    16     council.
    17         (4)  Whether the operation of the council has been in the
    18     public interest.
    19         (5)  Whether the council has encouraged public
    20     participation in the making of its rules and decisions or
    21     whether the council has permitted participation solely by the
    22     persons its regulates.
    23         (6)  Whether there is an alternate, less restrictive
    24     method of providing the same services to the public.
    25         (7)  Such other criteria as may be established by the
    26     standing committees.
    27     Section 5.  Section 19 of the act is amended to read:
    28  Section 19.  Sunset.
    29     This act shall expire June 30, [2003] 2009, unless reenacted
    30  prior to [that date] March 31, 2009.
    20030S0387B1045                 - 15 -     

     1     Section 6.  This act shall take effect as follows:
     2         (1)  The amendment of section 19 of the act shall take
     3     effect immediately.
     4         (2)  This section shall take effect immediately.
     5         (3)  The remainder of this act shall take effect in 60
     6     days.
     7     SECTION 1.  SECTIONS 4(B), (D), (F) AND (H) AND 5(B), (C) AND  <--
     8  (D)(4) AND (11) OF THE ACT OF JULY 8, 1986 (P.L.408, NO.89),
     9  KNOWN AS THE HEALTH CARE COST CONTAINMENT ACT, REENACTED AND
    10  AMENDED JUNE 28, 1993 (P.L.146, NO.34), ARE AMENDED TO READ:
    11  SECTION 4.  HEALTH CARE COST CONTAINMENT COUNCIL.
    12     * * *
    13     SECTION 1.  THE TITLE AND SECTIONS 1, 2 AND 3 OF THE ACT OF    <--
    14  JULY 8, 1986 (P.L.408, NO.89), KNOWN AS THE HEALTH CARE COST
    15  CONTAINMENT ACT, REENACTED AND AMENDED JUNE 28, 1993 (P.L.146,
    16  NO.34), ARE REENACTED TO READ:
    17                               AN ACT
    18  PROVIDING FOR THE CREATION OF THE HEALTH CARE COST CONTAINMENT
    19     COUNCIL, FOR ITS POWERS AND DUTIES, FOR HEALTH CARE COST
    20     CONTAINMENT THROUGH THE COLLECTION AND DISSEMINATION OF DATA,
    21     FOR PUBLIC ACCOUNTABILITY OF HEALTH CARE COSTS AND FOR HEALTH
    22     CARE FOR THE INDIGENT; AND MAKING AN APPROPRIATION.
    23  SECTION 1.  SHORT TITLE.
    24     THIS ACT SHALL BE KNOWN AND MAY BE CITED AS THE HEALTH CARE
    25  COST CONTAINMENT ACT.
    26  SECTION 2.  LEGISLATIVE FINDING AND DECLARATION.
    27     THE GENERAL ASSEMBLY FINDS THAT THERE EXISTS IN THIS
    28  COMMONWEALTH A MAJOR CRISIS BECAUSE OF THE CONTINUING ESCALATION
    29  OF COSTS FOR HEALTH CARE SERVICES. BECAUSE OF THE CONTINUING
    30  ESCALATION OF COSTS, AN INCREASINGLY LARGE NUMBER OF
    20030S0387B1045                 - 16 -     

     1  PENNSYLVANIA CITIZENS HAVE SEVERELY LIMITED ACCESS TO
     2  APPROPRIATE AND TIMELY HEALTH CARE. INCREASING COSTS ARE ALSO
     3  UNDERMINING THE QUALITY OF HEALTH CARE SERVICES CURRENTLY BEING
     4  PROVIDED. FURTHER, THE CONTINUING ESCALATION IS NEGATIVELY
     5  AFFECTING THE ECONOMY OF THIS COMMONWEALTH, IS RESTRICTING NEW
     6  ECONOMIC GROWTH AND IS IMPEDING THE CREATION OF NEW JOB
     7  OPPORTUNITIES IN THIS COMMONWEALTH.
     8     THE CONTINUING ESCALATION OF HEALTH CARE COSTS IS
     9  ATTRIBUTABLE TO A NUMBER OF INTERRELATED CAUSES, INCLUDING:
    10         (1)  INEFFICIENCY IN THE PRESENT CONFIGURATION OF HEALTH
    11     CARE SERVICE SYSTEMS AND IN THEIR OPERATION.
    12         (2)  THE PRESENT SYSTEM OF HEALTH CARE COST PAYMENTS BY
    13     THIRD PARTIES.
    14         (3)  THE INCREASING BURDEN OF INDIGENT CARE WHICH
    15     ENCOURAGES COST SHIFTING.
    16         (4)  THE ABSENCE OF A CONCENTRATED AND CONTINUOUS EFFORT
    17     IN ALL SEGMENTS OF THE HEALTH CARE INDUSTRY TO CONTAIN HEALTH
    18     CARE COSTS.
    19     THEREFORE, IT IS HEREBY DECLARED TO BE THE POLICY OF THE
    20  COMMONWEALTH OF PENNSYLVANIA TO PROMOTE HEALTH CARE COST
    21  CONTAINMENT AND TO IDENTIFY APPROPRIATE UTILIZATION PRACTICES BY
    22  CREATING AN INDEPENDENT COUNCIL TO BE KNOWN AS THE HEALTH CARE
    23  COST CONTAINMENT COUNCIL.
    24     IT IS THE PURPOSE OF THIS LEGISLATION TO PROMOTE THE PUBLIC
    25  INTEREST BY ENCOURAGING THE DEVELOPMENT OF COMPETITIVE HEALTH
    26  CARE SERVICES IN WHICH HEALTH CARE COSTS ARE CONTAINED AND TO
    27  ASSURE THAT ALL CITIZENS HAVE REASONABLE ACCESS TO QUALITY
    28  HEALTH CARE.
    29     IT IS FURTHER THE INTENT OF THIS ACT TO FACILITATE THE
    30  CONTINUING PROVISION OF QUALITY, COST-EFFECTIVE HEALTH SERVICES
    20030S0387B1045                 - 17 -     

     1  THROUGHOUT THE COMMONWEALTH BY PROVIDING CURRENT, ACCURATE DATA
     2  AND INFORMATION TO THE PURCHASERS AND CONSUMERS OF HEALTH CARE
     3  ON BOTH COST AND QUALITY OF HEALTH CARE SERVICES AND TO PUBLIC
     4  OFFICIALS FOR THE PURPOSE OF DETERMINING HEALTH-RELATED PROGRAMS
     5  AND POLICIES AND TO ASSURE ACCESS TO HEALTH CARE SERVICES.
     6     NOTHING IN THIS ACT SHALL PROHIBIT A PURCHASER FROM OBTAINING
     7  FROM ITS THIRD-PARTY INSURER, CARRIER OR ADMINISTRATOR, NOR
     8  RELIEVE SAID THIRD-PARTY INSURER, CARRIER OR ADMINISTRATOR FROM
     9  THE OBLIGATION OF PROVIDING, ON TERMS CONSISTENT WITH PAST
    10  PRACTICES, DATA PREVIOUSLY PROVIDED TO A PURCHASER PURSUANT TO
    11  ANY EXISTING OR FUTURE ARRANGEMENT, AGREEMENT OR UNDERSTANDING.
    12  SECTION 3.  DEFINITIONS.
    13     THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ACT SHALL
    14  HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE
    15  CONTEXT CLEARLY INDICATES OTHERWISE:
    16     "AMBULATORY SERVICE FACILITY."  A FACILITY LICENSED IN THIS
    17  COMMONWEALTH, NOT PART OF A HOSPITAL, WHICH PROVIDES MEDICAL,
    18  DIAGNOSTIC OR SURGICAL TREATMENT TO PATIENTS NOT REQUIRING
    19  HOSPITALIZATION, INCLUDING AMBULATORY SURGICAL FACILITIES,
    20  AMBULATORY IMAGING OR DIAGNOSTIC CENTERS, BIRTHING CENTERS,
    21  FREESTANDING EMERGENCY ROOMS AND ANY OTHER FACILITIES PROVIDING
    22  AMBULATORY CARE WHICH CHARGE A SEPARATE FACILITY CHARGE. THIS
    23  TERM DOES NOT INCLUDE THE OFFICES OF PRIVATE PHYSICIANS OR
    24  DENTISTS, WHETHER FOR INDIVIDUAL OR GROUP PRACTICES.
    25     "CHARGE" OR "RATE."  THE AMOUNT BILLED BY A PROVIDER FOR
    26  SPECIFIC GOODS OR SERVICES PROVIDED TO A PATIENT, PRIOR TO ANY
    27  ADJUSTMENT FOR CONTRACTUAL ALLOWANCES.
    28     "COUNCIL."  THE HEALTH CARE COST CONTAINMENT COUNCIL.
    29     "COVERED SERVICES."  ANY HEALTH CARE SERVICES OR PROCEDURES
    30  CONNECTED WITH EPISODES OF ILLNESS THAT REQUIRE EITHER INPATIENT
    20030S0387B1045                 - 18 -     

     1  HOSPITAL CARE OR MAJOR AMBULATORY SERVICE SUCH AS SURGICAL,
     2  MEDICAL OR MAJOR RADIOLOGICAL PROCEDURES, INCLUDING ANY INITIAL
     3  AND FOLLOW-UP OUTPATIENT SERVICES ASSOCIATED WITH THE EPISODE OF
     4  ILLNESS BEFORE, DURING OR AFTER INPATIENT HOSPITAL CARE OR MAJOR
     5  AMBULATORY SERVICE. THE TERM DOES NOT INCLUDE ROUTINE OUTPATIENT
     6  SERVICES CONNECTED WITH EPISODES OF ILLNESS THAT DO NOT REQUIRE
     7  HOSPITALIZATION OR MAJOR AMBULATORY SERVICE.
     8     "DATA SOURCE."  A HOSPITAL; AMBULATORY SERVICE FACILITY;
     9  PHYSICIAN; HEALTH MAINTENANCE ORGANIZATION AS DEFINED IN THE ACT
    10  OF DECEMBER 29, 1972 (P.L.1701, NO.364), KNOWN AS THE HEALTH
    11  MAINTENANCE ORGANIZATION ACT; HOSPITAL, MEDICAL OR HEALTH
    12  SERVICE PLAN WITH A CERTIFICATE OF AUTHORITY ISSUED BY THE
    13  INSURANCE DEPARTMENT, INCLUDING, BUT NOT LIMITED TO, HOSPITAL
    14  PLAN CORPORATIONS AS DEFINED IN 40 PA.C.S. CH. 61 (RELATING TO
    15  HOSPITAL PLAN CORPORATIONS) AND PROFESSIONAL HEALTH SERVICES
    16  PLAN CORPORATIONS AS DEFINED IN 40 PA.C.S. CH. 63 (RELATING TO
    17  PROFESSIONAL HEALTH SERVICES PLAN CORPORATIONS); COMMERCIAL
    18  INSURER WITH A CERTIFICATE OF AUTHORITY ISSUED BY THE INSURANCE
    19  DEPARTMENT PROVIDING HEALTH OR ACCIDENT INSURANCE; SELF-INSURED
    20  EMPLOYER PROVIDING HEALTH OR ACCIDENT COVERAGE OR BENEFITS FOR
    21  EMPLOYEES EMPLOYED IN THE COMMONWEALTH; ADMINISTRATOR OF A SELF-
    22  INSURED OR PARTIALLY SELF-INSURED HEALTH OR ACCIDENT PLAN
    23  PROVIDING COVERED SERVICES IN THE COMMONWEALTH; ANY HEALTH AND
    24  WELFARE FUND THAT PROVIDES HEALTH OR ACCIDENT BENEFITS OR
    25  INSURANCE PERTAINING TO COVERED SERVICE IN THE COMMONWEALTH; THE
    26  DEPARTMENT OF PUBLIC WELFARE FOR THOSE COVERED SERVICES IT
    27  PURCHASES OR PROVIDES THROUGH THE MEDICAL ASSISTANCE PROGRAM
    28  UNDER THE ACT OF JUNE 13, 1967 (P.L.31, NO.21), KNOWN AS THE
    29  PUBLIC WELFARE CODE, AND ANY OTHER PAYOR FOR COVERED SERVICES IN
    30  THE COMMONWEALTH OTHER THAN AN INDIVIDUAL.
    20030S0387B1045                 - 19 -     

     1     "HEALTH CARE FACILITY."  A GENERAL OR SPECIAL HOSPITAL,
     2  INCLUDING TUBERCULOSIS AND PSYCHIATRIC HOSPITALS, KIDNEY DISEASE
     3  TREATMENT CENTERS, INCLUDING FREESTANDING HEMODIALYSIS UNITS,
     4  AND AMBULATORY SERVICE FACILITIES AS DEFINED IN THIS SECTION,
     5  AND HOSPICES, BOTH PROFIT AND NONPROFIT, AND INCLUDING THOSE
     6  OPERATED BY AN AGENCY OF STATE OR LOCAL GOVERNMENT.
     7     "HEALTH CARE INSURER."  ANY PERSON, CORPORATION OR OTHER
     8  ENTITY THAT OFFERS ADMINISTRATIVE, INDEMNITY OR PAYMENT SERVICES
     9  FOR HEALTH CARE IN EXCHANGE FOR A PREMIUM OR SERVICE CHARGE
    10  UNDER A PROGRAM OF HEALTH CARE BENEFITS, INCLUDING, BUT NOT
    11  LIMITED TO, AN INSURANCE COMPANY, ASSOCIATION OR EXCHANGE
    12  ISSUING HEALTH INSURANCE POLICIES IN THIS COMMONWEALTH; HOSPITAL
    13  PLAN CORPORATION AS DEFINED IN 40 PA.C.S. CH. 61 (RELATING TO
    14  HOSPITAL PLAN CORPORATIONS); PROFESSIONAL HEALTH SERVICES PLAN
    15  CORPORATION AS DEFINED IN 40 PA.C.S. CH. 63 (RELATING TO
    16  PROFESSIONAL HEALTH SERVICES PLAN CORPORATIONS); HEALTH
    17  MAINTENANCE ORGANIZATION; PREFERRED PROVIDER ORGANIZATION;
    18  FRATERNAL BENEFIT SOCIETIES; BENEFICIAL SOCIETIES; AND THIRD-
    19  PARTY ADMINISTRATORS; BUT EXCLUDING EMPLOYERS, LABOR UNIONS OR
    20  HEALTH AND WELFARE FUNDS JOINTLY OR SEPARATELY ADMINISTERED BY
    21  EMPLOYERS OR LABOR UNIONS THAT PURCHASE OR SELF-FUND A PROGRAM
    22  OF HEALTH CARE BENEFITS FOR THEIR EMPLOYEES OR MEMBERS AND THEIR
    23  DEPENDENTS.
    24     "HEALTH MAINTENANCE ORGANIZATION."  AN ORGANIZED SYSTEM WHICH
    25  COMBINES THE DELIVERY AND FINANCING OF HEALTH CARE AND WHICH
    26  PROVIDES BASIC HEALTH SERVICES TO VOLUNTARILY ENROLLED
    27  SUBSCRIBERS FOR A FIXED PREPAID FEE, AS DEFINED IN THE ACT OF
    28  DECEMBER 29, 1972 (P.L.1701, NO.364), KNOWN AS THE HEALTH
    29  MAINTENANCE ORGANIZATION ACT.
    30     "HOSPITAL."  AN INSTITUTION, LICENSED IN THIS COMMONWEALTH,
    20030S0387B1045                 - 20 -     

     1  WHICH IS A GENERAL, TUBERCULOSIS, MENTAL, CHRONIC DISEASE OR
     2  OTHER TYPE OF HOSPITAL, OR KIDNEY DISEASE TREATMENT CENTER,
     3  WHETHER PROFIT OR NONPROFIT, AND INCLUDING THOSE OPERATED BY AN
     4  AGENCY OF STATE OR LOCAL GOVERNMENT.
     5     "INDIGENT CARE."  THE ACTUAL COSTS, AS DETERMINED BY THE
     6  COUNCIL, FOR THE PROVISION OF APPROPRIATE HEALTH CARE, ON AN
     7  INPATIENT OR OUTPATIENT BASIS, GIVEN TO INDIVIDUALS WHO CANNOT
     8  PAY FOR THEIR CARE BECAUSE THEY ARE ABOVE THE MEDICAL ASSISTANCE
     9  ELIGIBILITY LEVELS AND HAVE NO HEALTH INSURANCE OR OTHER
    10  FINANCIAL RESOURCES WHICH CAN COVER THEIR HEALTH CARE.
    11     "MAJOR AMBULATORY SERVICE."  SURGICAL OR MEDICAL PROCEDURES,
    12  INCLUDING DIAGNOSTIC AND THERAPEUTIC RADIOLOGICAL PROCEDURES,
    13  COMMONLY PERFORMED IN HOSPITALS OR AMBULATORY SERVICE
    14  FACILITIES, WHICH ARE NOT OF A TYPE COMMONLY PERFORMED OR WHICH
    15  CANNOT BE SAFELY PERFORMED IN PHYSICIANS' OFFICES AND WHICH
    16  REQUIRE SPECIAL FACILITIES SUCH AS OPERATING ROOMS OR SUITES OR
    17  SPECIAL EQUIPMENT SUCH AS FLUOROSCOPIC EQUIPMENT OR COMPUTED
    18  TOMOGRAPHIC SCANNERS, OR A POSTPROCEDURE RECOVERY ROOM OR SHORT-
    19  TERM CONVALESCENT ROOM.
    20     "MEDICAL PROCEDURE INCIDENCE VARIATIONS."  THE VARIATION IN
    21  THE INCIDENCE IN THE POPULATION OF SPECIFIC MEDICAL, SURGICAL
    22  AND RADIOLOGICAL PROCEDURES IN ANY GIVEN YEAR, EXPRESSED AS A
    23  DEVIATION FROM THE NORM, AS THESE TERMS ARE DEFINED IN THE
    24  CLASSICAL STATISTICAL DEFINITION OF "VARIATION," "INCIDENCE,"
    25  "DEVIATION" AND "NORM."
    26     "MEDICALLY INDIGENT" OR "INDIGENT."  THE STATUS OF A PERSON
    27  AS DESCRIBED IN THE DEFINITION OF INDIGENT CARE.
    28     "PAYMENT."  THE PAYMENTS THAT PROVIDERS ACTUALLY ACCEPT FOR
    29  THEIR SERVICES, EXCLUSIVE OF CHARITY CARE, RATHER THAN THE
    30  CHARGES THEY BILL.
    20030S0387B1045                 - 21 -     

     1     "PAYOR."  ANY PERSON OR ENTITY, INCLUDING, BUT NOT LIMITED
     2  TO, HEALTH CARE INSURERS AND PURCHASERS, THAT MAKE DIRECT
     3  PAYMENTS TO PROVIDERS FOR COVERED SERVICES.
     4     "PHYSICIAN."  AN INDIVIDUAL LICENSED UNDER THE LAWS OF THIS
     5  COMMONWEALTH TO PRACTICE MEDICINE AND SURGERY WITHIN THE SCOPE
     6  OF THE ACT OF OCTOBER 5, 1978 (P.L.1109, NO.261), KNOWN AS THE
     7  OSTEOPATHIC MEDICAL PRACTICE ACT, OR THE ACT OF DECEMBER 20,
     8  1985 (P.L.457, NO.112), KNOWN AS THE MEDICAL PRACTICE ACT OF
     9  1985.
    10     "PREFERRED PROVIDER ORGANIZATION."  ANY ARRANGEMENT BETWEEN A
    11  HEALTH CARE INSURER AND PROVIDERS OF HEALTH CARE SERVICES WHICH
    12  SPECIFIES RATES OF PAYMENT TO SUCH PROVIDERS WHICH DIFFER FROM
    13  THEIR USUAL AND CUSTOMARY CHARGES TO THE GENERAL PUBLIC AND
    14  WHICH ENCOURAGE ENROLLEES TO RECEIVE HEALTH SERVICES FROM SUCH
    15  PROVIDERS.
    16     "PROVIDER."  A HOSPITAL, AN AMBULATORY SERVICE FACILITY OR A
    17  PHYSICIAN.
    18     "PROVIDER QUALITY."  THE EXTENT TO WHICH A PROVIDER RENDERS
    19  CARE THAT, WITHIN THE CAPABILITIES OF MODERN MEDICINE, OBTAINS
    20  FOR PATIENTS MEDICALLY ACCEPTABLE HEALTH OUTCOMES AND PROGNOSES,
    21  ADJUSTED FOR PATIENT SEVERITY, AND TREATS PATIENTS
    22  COMPASSIONATELY AND RESPONSIVELY.
    23     "PROVIDER SERVICE EFFECTIVENESS."  THE EFFECTIVENESS OF
    24  SERVICES RENDERED BY A PROVIDER, DETERMINED BY MEASUREMENT OF
    25  THE MEDICAL OUTCOME OF PATIENTS GROUPED BY SEVERITY RECEIVING
    26  THOSE SERVICES.
    27     "PURCHASER."  ALL CORPORATIONS, LABOR ORGANIZATIONS AND OTHER
    28  ENTITIES THAT PURCHASE BENEFITS WHICH PROVIDE COVERED SERVICES
    29  FOR THEIR EMPLOYEES OR MEMBERS, EITHER THROUGH A HEALTH CARE
    30  INSURER OR BY MEANS OF A SELF-FUNDED PROGRAM OF BENEFITS, AND A
    20030S0387B1045                 - 22 -     

     1  CERTIFIED BARGAINING REPRESENTATIVE THAT REPRESENTS A GROUP OR
     2  GROUPS OF EMPLOYEES FOR WHOM EMPLOYERS PURCHASE A PROGRAM OF
     3  BENEFITS WHICH PROVIDE COVERED SERVICES, BUT EXCLUDING ENTITIES
     4  DEFINED IN THIS SECTION AS "HEALTH CARE INSURERS."
     5     "RAW DATA" OR "DATA."  DATA COLLECTED BY THE COUNCIL UNDER
     6  SECTION 6 IN THE FORM INITIALLY RECEIVED. NO DATA SHALL BE
     7  RELEASED BY THE COUNCIL EXCEPT AS PROVIDED FOR IN SECTION 11.
     8     "SEVERITY."  IN ANY PATIENT, THE MEASUREABLE DEGREE OF THE
     9  POTENTIAL FOR FAILURE OF ONE OR MORE VITAL ORGANS.
    10     SECTION 2.  SECTIONS 4, 5, 6 AND 7 OF THE ACT ARE REENACTED
    11  AND AMENDED TO READ:
    12  SECTION 4.  HEALTH CARE COST CONTAINMENT COUNCIL.
    13     (A)  ESTABLISHMENT.--THE GENERAL ASSEMBLY HEREBY ESTABLISHES
    14  AN INDEPENDENT COUNCIL TO BE KNOWN AS THE HEALTH CARE COST
    15  CONTAINMENT COUNCIL.
    16     (B)  COMPOSITION.--THE COUNCIL SHALL CONSIST OF [21] 24        <--
    17  VOTING MEMBERS, COMPOSED OF AND APPOINTED IN ACCORDANCE WITH THE
    18  FOLLOWING:
    19         (1)  THE SECRETARY OF HEALTH.
    20         (2)  THE SECRETARY OF PUBLIC WELFARE.
    21         (3)  THE INSURANCE COMMISSIONER.
    22         (3.1)  FOUR MEMBERS OF THE GENERAL ASSEMBLY, WHICH SHALL   <--
    23     CONSIST OF THE CHAIRMAN AND MINORITY CHAIRMAN OF THE PUBLIC
    24     HEALTH AND WELFARE COMMITTEE OF THE SENATE AND THE CHAIRMAN
    25     AND MINORITY CHAIRMAN OF THE HEALTH AND HUMAN SERVICES
    26     COMMITTEE OF THE HOUSE OF REPRESENTATIVES. MEMBERS UNDER THIS
    27     PARAGRAPH MAY APPOINT A DESIGNEE TO ACT ON BEHALF OF THE
    28     MEMBER AT MEETINGS OF THE COUNCIL AND OF COMMITTEES, AS
    29     PROVIDED IN SUBSECTION (F). DESIGNEES SHALL BE COUNTED FOR
    30     PURPOSES OF DETERMINING A QUORUM.
    20030S0387B1045                 - 23 -     

     1         (4)  SIX REPRESENTATIVES OF THE BUSINESS COMMUNITY, AT
     2     LEAST ONE OF WHOM REPRESENTS SMALL BUSINESS, WHO ARE
     3     PURCHASERS OF HEALTH CARE AS DEFINED IN SECTION 3, NONE OF
     4     WHICH IS PRIMARILY INVOLVED IN THE PROVISION OF HEALTH CARE
     5     OR HEALTH INSURANCE, THREE OF WHICH SHALL BE APPOINTED BY THE
     6     PRESIDENT PRO TEMPORE OF THE SENATE AND THREE OF WHICH SHALL
     7     BE APPOINTED BY THE SPEAKER OF THE HOUSE OF REPRESENTATIVES
     8     FROM A LIST OF TWELVE QUALIFIED PERSONS RECOMMENDED BY THE
     9     PENNSYLVANIA CHAMBER OF BUSINESS AND INDUSTRY. THREE NOMINEES
    10     SHALL BE REPRESENTATIVES OF SMALL BUSINESS.
    11         (5)  SIX REPRESENTATIVES OF ORGANIZED LABOR, THREE OF
    12     WHICH SHALL BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE
    13     SENATE AND THREE OF WHICH SHALL BE APPOINTED BY THE SPEAKER
    14     OF THE HOUSE OF REPRESENTATIVES FROM A LIST OF TWELVE
    15     QUALIFIED PERSONS RECOMMENDED BY THE PENNSYLVANIA AFL-CIO.
    16         (6)  ONE REPRESENTATIVE OF CONSUMERS WHO IS NOT PRIMARILY
    17     INVOLVED IN THE PROVISION OF HEALTH CARE OR HEALTH CARE
    18     INSURANCE, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
    19     QUALIFIED PERSONS RECOMMENDED JOINTLY BY THE SPEAKER OF THE
    20     HOUSE OF REPRESENTATIVES AND THE PRESIDENT PRO TEMPORE OF THE
    21     SENATE.
    22         (6.1)  ONE REPRESENTATIVE OF PATIENT ADVOCACY GROUPS       <--
    23     APPOINTED BY THE GOVERNOR, WHO MUST BE AN EMPLOYEE OF A NOT-
    24     FOR-PROFIT PATIENT SAFETY ADVOCACY ORGANIZATION.
    25         (7)  [ONE REPRESENTATIVE] THREE REPRESENTATIVES OF
    26     HOSPITALS, APPOINTED BY THE GOVERNOR FROM A LIST OF [THREE]
    27     FIVE QUALIFIED HOSPITAL REPRESENTATIVES RECOMMENDED BY THE
    28     HOSPITAL AND HEALTH SYSTEM ASSOCIATION OF PENNSYLVANIA.
    29     REPRESENTATIVES UNDER THIS PARAGRAPH SHALL INCLUDE ONE
    30     REPRESENTATIVE OF ACADEMIC TEACHING HOSPITALS AND ONE
    20030S0387B1045                 - 24 -     

     1     REPRESENTATIVE OF RURAL HOSPITALS. [THE] EACH REPRESENTATIVE
     2     UNDER THIS PARAGRAPH MAY APPOINT TWO ADDITIONAL DELEGATES TO
     3     ACT FOR THE REPRESENTATIVE ONLY AT MEETINGS OF COMMITTEES, AS
     4     PROVIDED FOR IN SUBSECTION (F).
     5         (8)  [ONE REPRESENTATIVE] TWO REPRESENTATIVES OF           <--
     6     PHYSICIANS, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
     7     QUALIFIED PHYSICIAN REPRESENTATIVES RECOMMENDED JOINTLY BY
     8     THE PENNSYLVANIA MEDICAL SOCIETY AND THE PENNSYLVANIA
     9     OSTEOPATHIC MEDICAL SOCIETY. THE REPRESENTATIVE UNDER THIS
    10     PARAGRAPH MAY APPOINT TWO ADDITIONAL DELEGATES TO ACT FOR THE
    11     REPRESENTATIVE ONLY AT MEETINGS OF COMMITTEES, AS PROVIDED
    12     FOR IN SUBSECTION (F).
    13         (8.1)  AN INDIVIDUAL APPOINTED BY THE GOVERNOR WHO IS      <--
    14     CERTIFIED IN CONTINUOUS QUALITY IMPROVEMENT METHODS.
    15         (9) (8.2)  ONE REPRESENTATIVE OF NURSES, APPOINTED BY THE  <--
    16     GOVERNOR FROM A LIST OF THREE QUALIFIED REPRESENTATIVES
    17     RECOMMENDED BY THE PENNSYLVANIA STATE NURSES ASSOCIATION.
    18         [(9)] (10)  ONE REPRESENTATIVE OF THE BLUE CROSS AND BLUE  <--
    19     SHIELD PLANS IN PENNSYLVANIA, APPOINTED BY THE GOVERNOR FROM
    20     A LIST OF THREE QUALIFIED PERSONS RECOMMENDED JOINTLY BY THE
    21     BLUE CROSS AND BLUE SHIELD PLANS OF PENNSYLVANIA.
    22         [(10)] (11)  ONE REPRESENTATIVE OF COMMERCIAL INSURANCE    <--
    23     CARRIERS, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
    24     QUALIFIED PERSONS RECOMMENDED BY THE INSURANCE FEDERATION OF
    25     PENNSYLVANIA, INC.
    26         [(11)] (12)  ONE REPRESENTATIVE OF HEALTH MAINTENANCE      <--
    27     ORGANIZATIONS, APPOINTED BY THE GOVERNOR FROM A LIST OF THREE
    28     QUALIFIED PERSONS RECOMMENDED BY THE [PENNSYLVANIA
    29     ASSOCIATION OF HEALTH MAINTENANCE ORGANIZATIONS] MANAGED CARE
    30     ASSOCIATION OF PENNSYLVANIA.
    20030S0387B1045                 - 25 -     

     1         [(12)] (13)  IN THE CASE OF EACH APPOINTMENT TO BE MADE    <--
     2     FROM A LIST SUPPLIED BY A SPECIFIED ORGANIZATION, IT IS
     3     INCUMBENT UPON THAT ORGANIZATION TO CONSULT WITH AND PROVIDE
     4     A LIST WHICH REFLECTS THE INPUT OF OTHER EQUIVALENT
     5     ORGANIZATIONS REPRESENTING SIMILAR INTERESTS. EACH APPOINTING
     6     AUTHORITY WILL HAVE THE DISCRETION TO REQUEST ADDITIONS TO
     7     THE LIST ORIGINALLY SUBMITTED. ADDITIONAL NAMES WILL BE
     8     PROVIDED NOT LATER THAN 15 DAYS AFTER SUCH REQUEST.
     9     APPOINTMENTS SHALL BE MADE BY THE APPOINTING AUTHORITY NO
    10     LATER THAN 90 DAYS AFTER RECEIPT OF THE ORIGINAL LIST. IF,
    11     FOR ANY REASON, ANY SPECIFIED ORGANIZATION SUPPLYING A LIST
    12     SHOULD CEASE TO EXIST, THEN THE RESPECTIVE APPOINTING
    13     AUTHORITY SHALL SPECIFY A NEW EQUIVALENT ORGANIZATION TO
    14     FULFILL THE RESPONSIBILITIES OF THIS ACT.
    15     * * *                                                          <--
    16     (C)  CHAIRPERSON AND VICE CHAIRPERSON.--THE MEMBERS SHALL      <--
    17  ANNUALLY ELECT, BY A MAJORITY VOTE OF THE MEMBERS, A CHAIRPERSON
    18  AND A VICE CHAIRPERSON OF THE COUNCIL FROM AMONG THE BUSINESS
    19  AND LABOR REPRESENTATIVES ON THE COUNCIL.
    20     (D)  QUORUM.--[ELEVEN] THIRTEEN SEVENTEEN MEMBERS, [A          <--
    21  MAJORITY OF WHICH IN ANY COMBINATION SHALL] AT LEAST SIX OF WHOM  <--
    22  MUST BE MADE UP OF REPRESENTATIVES OF BUSINESS AND LABOR, SHALL
    23  CONSTITUTE A QUORUM FOR THE TRANSACTION OF ANY BUSINESS, AND THE
    24  ACT BY THE MAJORITY OF THE MEMBERS PRESENT AT ANY MEETING IN
    25  WHICH THERE IS A QUORUM SHALL BE DEEMED TO BE THE ACT OF THE
    26  COUNCIL.
    27     * * *                                                          <--
    28     (E)  MEETINGS.--ALL MEETINGS OF THE COUNCIL SHALL BE           <--
    29  ADVERTISED AND CONDUCTED PURSUANT TO [THE ACT OF JULY 3, 1986
    30  (P.L.388, NO.84), KNOWN AS THE SUNSHINE ACT] 65 PA.C.S. CH. 7
    20030S0387B1045                 - 26 -     

     1  (RELATING TO OPEN MEETINGS), UNLESS OTHERWISE PROVIDED IN THIS
     2  SECTION.
     3         (1)  THE COUNCIL SHALL MEET AT LEAST ONCE EVERY TWO
     4     MONTHS, AND MAY PROVIDE FOR SPECIAL MEETINGS AS IT DEEMS
     5     NECESSARY. MEETING DATES SHALL BE SET BY A MAJORITY VOTE OF
     6     THE MEMBERS OF THE COUNCIL OR BY THE CALL OF THE CHAIRPERSON
     7     UPON SEVEN DAYS' NOTICE TO ALL COUNCIL MEMBERS.
     8         (2)  ALL MEETINGS OF THE COUNCIL SHALL BE PUBLICLY
     9     ADVERTISED, AS PROVIDED FOR IN THIS SUBSECTION, AND SHALL BE
    10     OPEN TO THE PUBLIC, EXCEPT THAT THE COUNCIL, THROUGH ITS
    11     BYLAWS, MAY PROVIDE FOR EXECUTIVE SESSIONS OF THE COUNCIL ON
    12     SUBJECTS PERMITTED TO BE DISCUSSED IN SUCH SESSIONS UNDER
    13     [THE SUNSHINE ACT] 65 PA.C.S. CH. 7. NO ACT OF THE COUNCIL
    14     SHALL BE TAKEN IN AN EXECUTIVE SESSION.
    15         (3)  THE COUNCIL SHALL PUBLISH A SCHEDULE OF ITS MEETINGS
    16     IN THE PENNSYLVANIA BULLETIN AND IN AT LEAST ONE NEWSPAPER IN
    17     GENERAL CIRCULATION IN THE COMMONWEALTH. SUCH NOTICE SHALL BE
    18     PUBLISHED AT LEAST ONCE IN EACH CALENDAR QUARTER AND SHALL
    19     LIST THE SCHEDULE OF MEETINGS OF THE COUNCIL TO BE HELD IN
    20     THE SUBSEQUENT CALENDAR QUARTER. SUCH NOTICE SHALL SPECIFY
    21     THE DATE, TIME AND PLACE OF THE MEETING AND SHALL STATE THAT
    22     THE COUNCIL'S MEETINGS ARE OPEN TO THE GENERAL PUBLIC, EXCEPT
    23     THAT NO SUCH NOTICE SHALL BE REQUIRED FOR EXECUTIVE SESSIONS
    24     OF THE COUNCIL.
    25         (4)  ALL ACTION TAKEN BY THE COUNCIL SHALL BE TAKEN IN
    26     OPEN PUBLIC SESSION, AND ACTION OF THE COUNCIL SHALL NOT BE
    27     TAKEN EXCEPT UPON THE AFFIRMATIVE VOTE OF A MAJORITY OF THE
    28     MEMBERS OF THE COUNCIL PRESENT DURING MEETINGS AT WHICH A
    29     QUORUM IS PRESENT.
    30     (F)  BYLAWS.--THE COUNCIL SHALL ADOPT BYLAWS, NOT
    20030S0387B1045                 - 27 -     

     1  INCONSISTENT WITH THIS ACT, AND MAY APPOINT SUCH COMMITTEES OR
     2  ELECT SUCH OFFICERS SUBORDINATE TO THOSE PROVIDED FOR IN
     3  SUBSECTION (C) AS IT DEEMS ADVISABLE. THE COUNCIL SHALL PROVIDE
     4  FOR THE APPROVAL AND PARTICIPATION OF ADDITIONAL DELEGATES
     5  APPOINTED UNDER SUBSECTION (B)(7) AND (8) SO THAT EACH
     6  ORGANIZATION REPRESENTED BY DELEGATES UNDER THOSE PARAGRAPHS
     7  SHALL NOT HAVE MORE THAN ONE VOTE ON ANY COMMITTEE TO WHICH THEY
     8  ARE APPOINTED. THE COUNCIL SHALL ALSO APPOINT A TECHNICAL
     9  ADVISORY GROUP WHICH SHALL, ON AN AD HOC BASIS, RESPOND TO
    10  ISSUES PRESENTED TO IT BY THE COUNCIL OR COMMITTEES OF THE
    11  COUNCIL AND SHALL MAKE RECOMMENDATIONS TO THE COUNCIL. THE
    12  TECHNICAL ADVISORY GROUP SHALL INCLUDE [PHYSICIANS, RESEARCHERS   <--
    13  AND BIOSTATISTICIANS. IN APPOINTING [AND BIOSTATISTICIANS.],      <--
    14  BIOSTATISTICIANS, ONE REPRESENTATIVE OF THE HOSPITAL AND
    15  HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA AND ONE REPRESENTATIVE
    16  OF THE PENNSYLVANIA MEDICAL SOCIETY. THE HOSPITAL AND
    17  HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA AND THE PENNSYLVANIA
    18  MEDICAL SOCIETY REPRESENTATIVES SHALL NOT BE SUBJECT TO
    19  EXECUTIVE COMMITTEE APPROVAL. IN APPOINTING PHYSICIANS,
    20  RESEARCHERS AND BIOSTATISTICIANS TO THE TECHNICAL ADVISORY
    21  GROUP, THE COUNCIL SHALL CONSULT WITH AND TAKE NOMINATIONS FROM
    22  THE REPRESENTATIVES OF THE HOSPITAL ASSOCIATION OF PENNSYLVANIA,
    23  THE PENNSYLVANIA MEDICAL SOCIETY, THE PENNSYLVANIA OSTEOPATHIC
    24  MEDICAL SOCIETY OR OTHER LIKE ORGANIZATIONS.] AT A MINIMUM ONE    <--
    25  PHYSICIAN, ONE NURSE, ONE HEALTH RESEARCHER, ONE
    26  BIOSTATISTICIAN, ONE HOSPITAL REPRESENTATIVE, ONE REPRESENTATIVE
    27  OF A HEALTH CARE PLAN, ONE HEALTH ECONOMIST AND ONE
    28  REPRESENTATIVE OF THE PUBLIC HEALTH SECTOR. AT ITS DISCRETION
    29  AND IN ACCORDANCE WITH THIS SECTION, NOMINATIONS SHALL BE         <--
    30  APPROVED BY THE EXECUTIVE COMMITTEE OF THE COUNCIL. THE HOSPITAL  <--
    20030S0387B1045                 - 28 -     

     1  AND HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA AND THE
     2  PENNSYLVANIA MEDICAL SOCIETY SHALL EACH BE AFFORDED ONE
     3  REPRESENTATIVE NOT SUBJECT TO EXECUTIVE COMMITTEE APPROVAL. IF
     4  THE SUBJECT MATTER OF ANY PROJECT EXCEEDS THE EXPERTISE OF THE
     5  TECHNICAL ADVISORY GROUP, PHYSICIANS IN APPROPRIATE SPECIALTIES
     6  WHO POSSESS CURRENT KNOWLEDGE OF THE ISSUE UNDER STUDY MAY BE
     7  CONSULTED. THE TECHNICAL ADVISORY GROUP SHALL ALSO REVIEW THE
     8  AVAILABILITY AND RELIABILITY OF SEVERITY OF ILLNESS MEASUREMENTS
     9  AS THEY RELATE TO SMALL HOSPITALS AND PSYCHIATRIC,
    10  REHABILITATION AND CHILDREN'S HOSPITALS AND SHALL MAKE
    11  RECOMMENDATIONS TO THE COUNCIL BASED UPON THIS REVIEW.
    12     * * *                                                          <--
    13     (G)  COMPENSATION AND EXPENSES.--THE MEMBERS OF THE COUNCIL    <--
    14  SHALL NOT RECEIVE A SALARY OR PER DIEM ALLOWANCE FOR SERVING AS
    15  MEMBERS OF THE COUNCIL BUT SHALL BE REIMBURSED FOR ACTUAL AND
    16  NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
    17  SAID EXPENSES MAY INCLUDE REIMBURSEMENT OF TRAVEL AND LIVING
    18  EXPENSES WHILE ENGAGED IN COUNCIL BUSINESS.
    19     (H)  TERMS OF COUNCIL MEMBERS.--
    20         (1)  THE TERMS OF THE SECRETARY OF HEALTH, THE SECRETARY
    21     OF PUBLIC WELFARE AND THE INSURANCE COMMISSIONER SHALL BE
    22     CONCURRENT WITH THEIR HOLDING OF PUBLIC OFFICE. THE
    23     [EIGHTEEN] TWENTY-ONE APPOINTED COUNCIL MEMBERS SHALL EACH     <--
    24     [EIGHTEEN APPOINTED] COUNCIL MEMBERS UNDER SUBSECTION (B)(1),  <--
    25     (2), (3) AND (3.1) SHALL SERVE EX OFFICIO. THE COUNCIL
    26     MEMBERS UNDER SUBSECTION (B)(4) THROUGH (11) SHALL EACH SERVE
    27     FOR A TERM OF [THREE] FOUR YEARS AND SHALL CONTINUE TO SERVE
    28     THEREAFTER UNTIL THEIR SUCCESSOR IS APPOINTED, EXCEPT THAT,
    29     OF THE MEMBERS FIRST APPOINTED:
    30             (I)  TWO EACH OF THE REPRESENTATIVES OF BUSINESS AND
    20030S0387B1045                 - 29 -     

     1         ORGANIZED LABOR AND THE REPRESENTATIVE OF CONSUMERS SHALL
     2         SERVE FOR A TERM TO EXPIRE ON JUNE 30 OF THE YEAR
     3         FOLLOWING THEIR APPOINTMENT.
     4             (II)  TWO EACH OF THE REPRESENTATIVES OF BUSINESS AND
     5         ORGANIZED LABOR AND THE REPRESENTATIVES OF THE BLUE CROSS
     6         AND BLUE SHIELD PLANS OF PENNSYLVANIA AND THE COMMERCIAL
     7         INSURANCE CARRIERS SHALL SERVE FOR A TERM TO EXPIRE ON
     8         JUNE 30 OF THE SECOND YEAR FOLLOWING THEIR APPOINTMENT.
     9             (III)  TWO EACH OF THE REPRESENTATIVES OF BUSINESS
    10         AND ORGANIZED LABOR AND THE REPRESENTATIVES OF HOSPITALS,
    11         PHYSICIANS AND HEALTH MAINTENANCE ORGANIZATIONS SHALL
    12         SERVE FOR A TERM TO EXPIRE ON JUNE 30 OF THE THIRD YEAR
    13         FOLLOWING THEIR APPOINTMENT.
    14         (2)  VACANCIES ON THE COUNCIL SHALL BE FILLED IN THE SAME
    15     MANNER IN WHICH THEY WERE ORIGINALLY DESIGNATED UNDER
    16     SUBSECTION (B), WITHIN 60 DAYS OF THE VACANCY, EXCEPT THAT
    17     WHEN VACANCIES OCCUR AMONG THE REPRESENTATIVES OF BUSINESS OR
    18     ORGANIZED LABOR, TWO NOMINATIONS SHALL BE SUBMITTED BY THE
    19     ORGANIZATION SPECIFIED IN SUBSECTION (B) FOR EACH VACANCY ON
    20     THE COUNCIL. IF THE OFFICER REQUIRED IN SUBSECTION (B) TO
    21     MAKE APPOINTMENTS TO THE COUNCIL FAILS TO ACT WITHIN 60 DAYS
    22     OF THE VACANCY, THE COUNCIL CHAIRPERSON MAY APPOINT ONE OF
    23     THE PERSONS RECOMMENDED FOR THE VACANCY UNTIL THE APPOINTING
    24     AUTHORITY MAKES THE APPOINTMENT.
    25         (3)  A MEMBER MAY BE REMOVED FOR JUST CAUSE BY THE
    26     APPOINTING AUTHORITY AFTER RECOMMENDATION BY A VOTE OF AT
    27     LEAST 14 MEMBERS OF THE COUNCIL.
    28         (4)  NO APPOINTED MEMBER UNDER SUBSECTION (B)(4) THROUGH   <--
    29     (11) SHALL BE ELIGIBLE TO SERVE MORE THAN TWO FULL
    30     CONSECUTIVE TERMS OF FOUR YEARS BEGINNING ON JULY 1, 2003.
    20030S0387B1045                 - 30 -     

     1     * * *                                                          <--
     2     (I)  COMMENCEMENT OF OPERATIONS.--                             <--
     3         (1)  WITHIN 60 DAYS AFTER THE EFFECTIVE DATE OF THIS ACT,
     4     EACH ORGANIZATION OR INDIVIDUAL REQUIRED TO SUBMIT A LIST OF
     5     RECOMMENDED PERSONS TO THE GOVERNOR, THE PRESIDENT PRO
     6     TEMPORE OF THE SENATE OR THE SPEAKER OF THE HOUSE OF
     7     REPRESENTATIVES UNDER SUBSECTION (B) SHALL SUBMIT SAID LIST.
     8         (2)  WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS ACT,
     9     THE GOVERNOR, THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE
    10     SPEAKER OF THE HOUSE OF REPRESENTATIVES SHALL MAKE ALL OF THE
    11     APPOINTMENTS CALLED FOR IN SUBSECTION (B), AND THE COUNCIL
    12     SHALL BEGIN OPERATIONS IMMEDIATELY FOLLOWING THESE
    13     APPOINTMENTS.
    14     (J)  SUBSEQUENT APPOINTMENTS.--SUBMISSION OF LISTS OF
    15  RECOMMENDED PERSONS AND APPOINTMENTS OF COUNCIL MEMBERS FOR THE
    16  SECOND AND SUCCEEDING TERMS SHALL BE MADE IN THE SAME MANNER AS
    17  PRESCRIBED IN SUBSECTION (B), EXCEPT THAT:
    18         (1)  ORGANIZATIONS REQUIRED UNDER SUBSECTION (B) TO
    19     SUBMIT LISTS OF RECOMMENDED PERSONS SHALL DO SO AT LEAST 60
    20     DAYS PRIOR TO EXPIRATION OF THE COUNCIL MEMBERS' TERMS.
    21         (2)  THE OFFICER REQUIRED UNDER SUBSECTION (B) TO MAKE
    22     APPOINTMENTS TO THE COUNCIL SHALL MAKE SAID APPOINTMENTS AT
    23     LEAST 30 DAYS PRIOR TO EXPIRATION OF THE COUNCIL MEMBERS'
    24     TERMS. IF THE APPOINTMENTS ARE NOT MADE WITHIN THE SPECIFIED
    25     TIME, THE COUNCIL CHAIRPERSON MAY MAKE INTERIM APPOINTMENTS
    26     FROM THE LISTS OF RECOMMENDED INDIVIDUALS. AN INTERIM
    27     APPOINTMENT SHALL BE VALID ONLY UNTIL THE APPROPRIATE OFFICER
    28     UNDER SUBSECTION (B) MAKES THE REQUIRED APPOINTMENT. WHETHER
    29     THE APPOINTMENT IS BY THE REQUIRED OFFICER OR BY THE
    30     CHAIRPERSON OF THE COUNCIL, THE APPOINTMENT SHALL BECOME
    20030S0387B1045                 - 31 -     

     1     EFFECTIVE IMMEDIATELY UPON EXPIRATION OF THE INCUMBENT
     2     MEMBER'S TERM.
     3     (K)  APPOINTMENTS OF ACTING COUNCILORS.--SHOULD ANY
     4  ORGANIZATION OR INDIVIDUAL FAIL TO SUBMIT A LIST OF RECOMMENDED
     5  PERSONS AS REQUIRED UNDER SUBSECTION (B) WITHIN THE TIME LIMITS
     6  IN SUBSECTION (I) OR (J), THE OFFICER DESIGNATED TO MAKE THE
     7  APPOINTMENT UNDER SUBSECTION (B) SHALL APPOINT AS MANY ACTING
     8  COUNCILORS AS REQUIRED UNDER SUBSECTION (B) UNTIL SUCH TIME AS
     9  THE LIST OF RECOMMENDED PERSONS IS SUBMITTED BY THE ORIGINAL
    10  ORGANIZATION AS REQUIRED IN SUBSECTION (B).
    11  SECTION 5.  POWERS AND DUTIES OF THE COUNCIL.                     <--
    12     * * *
    13  SECTION 5.  POWERS AND DUTIES OF THE COUNCIL.                     <--
    14     (A)  GENERAL POWERS.--THE COUNCIL SHALL EXERCISE ALL POWERS
    15  NECESSARY AND APPROPRIATE TO CARRY OUT ITS DUTIES, INCLUDING THE
    16  FOLLOWING:
    17         (1)  TO EMPLOY AN EXECUTIVE DIRECTOR, INVESTIGATORS AND
    18     OTHER STAFF NECESSARY TO COMPLY WITH THE PROVISIONS OF THIS
    19     ACT AND REGULATIONS PROMULGATED THEREUNDER, TO EMPLOY OR
    20     RETAIN LEGAL COUNSEL AND TO ENGAGE PROFESSIONAL CONSULTANTS,
    21     AS IT DEEMS NECESSARY TO THE PERFORMANCE OF ITS DUTIES. ANY
    22     CONSULTANTS, OTHER THAN SOLE SOURCE CONSULTANTS, ENGAGED BY
    23     THE COUNCIL SHALL BE SELECTED IN ACCORDANCE WITH THE
    24     PROVISIONS FOR CONTRACTING WITH VENDORS SET FORTH IN SECTION
    25     16.
    26         (2)  TO FIX THE COMPENSATION OF ALL EMPLOYEES AND TO
    27     PRESCRIBE THEIR DUTIES. NOTWITHSTANDING THE INDEPENDENCE OF
    28     THE COUNCIL UNDER SECTION 4(A), EMPLOYEES UNDER THIS
    29     PARAGRAPH SHALL BE DEEMED EMPLOYEES OF THE COMMONWEALTH FOR
    30     THE PURPOSES OF PARTICIPATION IN THE PENNSYLVANIA EMPLOYEE
    20030S0387B1045                 - 32 -     

     1     BENEFIT TRUST FUND.
     2         (3)  TO MAKE AND EXECUTE CONTRACTS AND OTHER INSTRUMENTS,
     3     INCLUDING THOSE FOR PURCHASE OF SERVICES AND PURCHASE OR
     4     LEASING OF EQUIPMENT AND SUPPLIES, NECESSARY OR CONVENIENT TO
     5     THE EXERCISE OF THE POWERS OF THE COUNCIL. ANY SUCH CONTRACT
     6     SHALL BE LET ONLY IN ACCORDANCE WITH THE PROVISION FOR
     7     CONTRACTING WITH VENDORS SET FORTH IN SECTION 16.
     8         (4)  TO CONDUCT EXAMINATIONS AND INVESTIGATIONS, TO
     9     CONDUCT AUDITS, PURSUANT TO THE PROVISIONS OF SUBSECTION (C),
    10     AND TO HEAR TESTIMONY AND TAKE PROOF, UNDER OATH OR
    11     AFFIRMATION, AT PUBLIC OR PRIVATE HEARINGS, ON ANY MATTER
    12     NECESSARY TO ITS DUTIES.
    13         (4.1)  TO PROVIDE HOSPITALS WITH INDIVIDUALIZED DATA ON
    14     ADVERSE MEDICAL EVENTS, COMPLICATIONS AND HOSPITAL
    15     INFECTIONS. THE DATA SHALL BE RISK ADJUSTED AND MADE
    16     AVAILABLE TO HOSPITALS ELECTRONICALLY AND FREE OF CHARGE ON A
    17     QUARTERLY BASIS WITHIN 45 DAYS OF RECEIPT OF THE CORRECTED
    18     QUARTERLY DATA FROM THE HOSPITALS. THE DATA IS INTENDED TO
    19     PROVIDE THE PATIENT SAFETY COMMITTEE OF EACH HOSPITAL WITH
    20     INFORMATION NECESSARY TO ASSIST IT IN CONDUCTING ROUTE CAUSE
    21     ANALYSIS.
    22         (5)  TO DO ALL THINGS NECESSARY TO CARRY OUT ITS DUTIES
    23     UNDER THE PROVISIONS OF THIS ACT.
    24     (B)  RULES AND REGULATIONS.--THE COUNCIL [MAY, IN A MANNER
    25  PROVIDED BY LAW, PROMULGATE RULES AND REGULATIONS] SHALL
    26  PROMULGATE RULES AND REGULATIONS IN ACCORDANCE WITH THE ACT OF
    27  JUNE 25, 1982 (P.L.633, NO.181), KNOWN AS THE REGULATORY REVIEW
    28  ACT, NECESSARY TO CARRY OUT ITS DUTIES UNDER THIS ACT. THIS       <--
    29  SUBSECTION SHALL NOT APPLY TO REGULATIONS IN EFFECT ON JUNE 30,
    30  2003.
    20030S0387B1045                 - 33 -     

     1     (C)  [AUDIT POWERS.--THE COUNCIL SHALL HAVE THE RIGHT TO       <--
     2  INDEPENDENTLY AUDIT ALL INFORMATION REQUIRED TO BE SUBMITTED BY
     3  DATA SOURCES AS NEEDED TO CORROBORATE THE ACCURACY OF THE
     4  SUBMITTED DATA, PURSUANT TO THE FOLLOWING:
     5         (1)  AUDITS OF INFORMATION SUBMITTED BY PROVIDERS OR
     6     HEALTH CARE INSURERS SHALL BE PERFORMED ON A SAMPLE AND
     7     ISSUE-SPECIFIC BASIS, AS NEEDED BY THE COUNCIL, AND SHALL BE
     8     COORDINATED, TO THE EXTENT PRACTICABLE, WITH AUDITS PERFORMED
     9     BY THE COMMONWEALTH. ALL HEALTH CARE INSURERS AND PROVIDERS
    10     ARE HEREBY REQUIRED TO MAKE THOSE BOOKS, RECORDS OF ACCOUNTS
    11     AND ANY OTHER DATA NEEDED BY THE AUDITORS AVAILABLE TO THE
    12     COUNCIL AT A CONVENIENT LOCATION WITHIN 30 DAYS OF A WRITTEN
    13     NOTIFICATION BY THE COUNCIL.
    14         (2)  AUDITS OF INFORMATION SUBMITTED BY PURCHASERS SHALL
    15     BE PERFORMED ON A SAMPLE BASIS, UNLESS THERE EXISTS
    16     REASONABLE CAUSE TO AUDIT SPECIFIC PURCHASERS, BUT IN NO CASE
    17     SHALL THE COUNCIL HAVE THE POWER TO AUDIT FINANCIAL
    18     STATEMENTS OF PURCHASERS.
    19         (3)  ALL AUDITS PERFORMED BY THE COUNCIL SHALL BE
    20     PERFORMED AT THE EXPENSE OF THE COUNCIL.]                      <--
    21  VERIFICATION OF DATA.--THE COUNCIL SHALL REQUIRE ATTESTATION BY
    22  DATA SOURCES AS TO THE ACCURACY OF THE SUBMITTED DATA. ANY
    23  PERSON WHO SUBMITS INACCURATE DATA SHALL BE SUBJECT TO CIVIL
    24  PENALTY UNDER THIS ACT.
    25     (D)  GENERAL DUTIES AND FUNCTIONS.--THE COUNCIL IS HEREBY
    26  AUTHORIZED TO AND SHALL PERFORM THE FOLLOWING DUTIES AND
    27  FUNCTIONS:
    28         * * *                                                      <--
    29         (4)  ADOPT AND IMPLEMENT A METHODOLOGY TO [COLLECT AND]
    30     DISSEMINATE DATA REFLECTING PROVIDER QUALITY AND PROVIDER
    20030S0387B1045                 - 34 -     

     1     SERVICE EFFECTIVENESS PURSUANT TO SECTION 6 [AND TO
     2     CONTINUOUSLY STUDY QUALITY OF CARE SYSTEMS].
     3         * * *
     4         (1)  DEVELOP A COMPUTERIZED SYSTEM FOR THE COLLECTION,     <--
     5     ANALYSIS AND DISSEMINATION OF DATA. THE COUNCIL MAY CONTRACT
     6     WITH A VENDOR WHO WILL PROVIDE SUCH DATA PROCESSING SERVICES.
     7     THE COUNCIL SHALL ASSURE THAT THE SYSTEM WILL BE CAPABLE OF
     8     PROCESSING ALL DATA REQUIRED TO BE COLLECTED UNDER THIS ACT.
     9     ANY VENDOR SELECTED BY THE COUNCIL SHALL BE SELECTED IN
    10     ACCORDANCE WITH THE PROVISIONS OF SECTION 16, AND SAID VENDOR
    11     SHALL RELINQUISH ANY AND ALL PROPRIETARY RIGHTS OR CLAIMS TO
    12     THE DATA BASE CREATED AS A RESULT OF IMPLEMENTATION OF THE
    13     DATA PROCESSING SYSTEM.
    14         (2)  ESTABLISH A PENNSYLVANIA UNIFORM CLAIMS AND BILLING
    15     FORM FOR ALL DATA SOURCES AND ALL PROVIDERS WHICH SHALL BE
    16     UTILIZED AND MAINTAINED BY ALL DATA SOURCES AND ALL PROVIDERS
    17     FOR ALL SERVICES COVERED UNDER THIS ACT.
    18         (3)  COLLECT AND DISSEMINATE DATA, AS SPECIFIED IN
    19     SECTION 6, AND OTHER INFORMATION FROM DATA SOURCES TO WHICH
    20     THE COUNCIL IS ENTITLED, PREPARED ACCORDING TO FORMATS, TIME
    21     FRAMES AND CONFIDENTIALITY PROVISIONS AS SPECIFIED IN
    22     SECTIONS 6 AND 10, AND BY THE COUNCIL.
    23         (4)  ADOPT AND IMPLEMENT A METHODOLOGY TO COLLECT AND
    24     DISSEMINATE DATA REFLECTING PROVIDER QUALITY AND PROVIDER
    25     SERVICE EFFECTIVENESS PURSUANT TO SECTION 6 [AND TO
    26     CONTINUOUSLY STUDY QUALITY OF CARE SYSTEMS].
    27         (5)  SUBJECT TO THE RESTRICTIONS ON ACCESS TO RAW DATA
    28     SET FORTH IN SECTION 10, ISSUE SPECIAL REPORTS AND MAKE
    29     AVAILABLE RAW DATA AS DEFINED IN SECTION 3 TO ANY PURCHASER
    30     REQUESTING IT. SALE BY ANY RECIPIENT OR EXCHANGE OR
    20030S0387B1045                 - 35 -     

     1     PUBLICATION BY A RECIPIENT, OTHER THAN A PURCHASER, OF RAW
     2     COUNCIL DATA TO OTHER PARTIES WITHOUT THE EXPRESS WRITTEN
     3     CONSENT OF, AND UNDER TERMS APPROVED BY, THE COUNCIL SHALL BE
     4     UNAUTHORIZED USE OF DATA PURSUANT TO SECTION 10(C).
     5         (6)  ON AN ANNUAL BASIS, PUBLISH IN THE PENNSYLVANIA
     6     BULLETIN A LIST OF ALL THE RAW DATA REPORTS IT HAS PREPARED
     7     UNDER SECTION 10(F) AND A DESCRIPTION OF THE DATA OBTAINED
     8     THROUGH EACH COMPUTER-TO-COMPUTER ACCESS IT HAS PROVIDED
     9     UNDER SECTION 10(F) AND OF THE NAMES OF THE PARTIES TO WHOM
    10     THE COUNCIL PROVIDED THE REPORTS OR THE COMPUTER-TO-COMPUTER
    11     ACCESS DURING THE PREVIOUS MONTH.
    12         (7)  PROMOTE COMPETITION IN THE HEALTH CARE AND HEALTH
    13     INSURANCE MARKETS.
    14         (8)  ASSURE THAT THE USE OF COUNCIL DATA DOES NOT RAISE
    15     ACCESS BARRIERS TO CARE.
    16         (10)  MAKE ANNUAL REPORTS TO THE GENERAL ASSEMBLY ON THE
    17     RATE OF INCREASE IN THE COST OF HEALTH CARE IN THE
    18     COMMONWEALTH AND THE EFFECTIVENESS OF THE COUNCIL IN CARRYING
    19     OUT THE LEGISLATIVE INTENT OF THIS ACT. IN ADDITION, THE
    20     COUNCIL MAY MAKE RECOMMENDATIONS ON THE NEED FOR FURTHER
    21     HEALTH CARE COST CONTAINMENT LEGISLATION. THE COUNCIL SHALL
    22     ALSO MAKE ANNUAL REPORTS TO THE GENERAL ASSEMBLY ON THE
    23     QUALITY AND EFFECTIVENESS OF HEALTH CARE AND ACCESS TO HEALTH
    24     CARE FOR ALL CITIZENS OF THE COMMONWEALTH.
    25         [(11)  ADOPT, WITHIN ONE YEAR, A MODEL PATIENT ITEMIZED
    26     STATEMENT FOR ALL PROVIDERS, WHICH ITEMIZES ALL CHARGES FOR
    27     SERVICES, EQUIPMENT, SUPPLIES AND MEDICINE, DESIGNED TO BE
    28     MORE UNDERSTANDABLE THAN CURRENT PATIENT BILLS. EACH PROVIDER
    29     SHALL BE REQUIRED TO UTILIZE SAID MODEL PATIENT ITEMIZED
    30     STATEMENT FOR COVERED SERVICES WITHIN 90 DAYS OF ADOPTION OF
    20030S0387B1045                 - 36 -     

     1     SAID FORM BY THE COUNCIL. SUCH MODEL PATIENT ITEMIZED
     2     STATEMENTS SHALL BE WRITTEN IN LANGUAGE THAT IS
     3     UNDERSTANDABLE TO THE AVERAGE PERSON AND BE PRESENTED TO EACH
     4     PATIENT UPON DISCHARGE FROM A HEALTH CARE FACILITY OR
     5     PROVISION OF PATIENT SERVICES OR WITHIN A REASONABLE TIME
     6     THEREAFTER. PATIENTS MAY REQUEST A COPY OF THEIR PENNSYLVANIA
     7     UNIFORM CLAIMS AND BILLING FORM, AND, UPON REQUEST, THE
     8     PROVIDER SHALL FURNISH THIS FORM TO THE PATIENT WITHIN 30
     9     DAYS.]
    10         * * *                                                      <--
    11         (12)  CONDUCT STUDIES AND PUBLISH REPORTS THEREON          <--
    12     ANALYZING THE EFFECTS THAT NONINPATIENT, ALTERNATIVE HEALTH
    13     CARE DELIVERY SYSTEMS HAVE ON HEALTH CARE COSTS. THESE
    14     SYSTEMS SHALL INCLUDE, BUT NOT BE LIMITED TO: HMO'S; PPO'S;
    15     PRIMARY HEALTH CARE FACILITIES; HOME HEALTH CARE; ATTENDANT
    16     CARE; AMBULATORY SERVICE FACILITIES; FREESTANDING EMERGENCY
    17     CENTERS; BIRTHING CENTERS; AND HOSPICE CARE. THESE REPORTS
    18     SHALL BE SUBMITTED TO THE GENERAL ASSEMBLY AND SHALL BE MADE
    19     AVAILABLE TO THE PUBLIC.
    20         (13)  CONDUCT STUDIES AND MAKE REPORTS CONCERNING THE
    21     UTILIZATION OF EXPERIMENTAL AND NONEXPERIMENTAL TRANSPLANT
    22     SURGERY AND OTHER HIGHLY TECHNICAL AND EXPERIMENTAL
    23     PROCEDURES, INCLUDING COSTS AND MORTALITY RATES.
    24         (14)  IN ORDER TO INSURE THAT THE COUNCIL ADOPTS AND
    25     MAINTAINS BOTH SCIENTIFICALLY CREDIBLE AND COST-EFFECTIVE
    26     METHODOLOGY TO COLLECT AND DISSEMINATE DATA REFLECTING
    27     PROVIDER QUALITY AND EFFECTIVENESS, THE COUNCIL SHALL, WITHIN
    28     ONE YEAR OF THE EFFECTIVE DATE OF THIS PARAGRAPH, UTILIZING
    29     CURRENT COMMONWEALTH AGENCY GUIDELINES AND PROCEDURES, ISSUE
    30     A REQUEST FOR INFORMATION FROM ANY VENDOR THAT WISHES TO
    20030S0387B1045                 - 37 -     

     1     PROVIDE DATA COLLECTION OR RISK ADJUSTMENT METHODOLOGY TO THE
     2     COUNCIL TO HELP MEET THE REQUIREMENTS OF THIS SUBSECTION AND
     3     SECTION 6. THE COUNCIL SHALL ESTABLISH AN INDEPENDENT REQUEST
     4     FOR INFORMATION REVIEW COMMITTEE TO REVIEW AND RANK ALL
     5     RESPONSES AND TO MAKE A FINAL RECOMMENDATION TO THE COUNCIL.
     6     THE REQUEST FOR INFORMATION REVIEW COMMITTEE SHALL CONSIST OF
     7     THE FOLLOWING MEMBERS:
     8             (I)  FOUR MEMBERS OF THE GENERAL ASSEMBLY, ONE EACH
     9         TO BE APPOINTED BY THE PRESIDENT PRO TEMPORE OF THE
    10         SENATE, THE MINORITY LEADER OF THE SENATE, THE SPEAKER OF
    11         THE HOUSE OF REPRESENTATIVES AND THE MINORITY LEADER OF
    12         THE HOUSE OF REPRESENTATIVES.
    13             (II)  THE FOLLOWING MEMBERS APPOINTED BY THE
    14         GOVERNOR:
    15                 (A)  ONE REPRESENTATIVE OF THE HOSPITAL AND
    16             HEALTHSYSTEM ASSOCIATION OF PENNSYLVANIA.
    17                 (B)  ONE REPRESENTATIVE OF THE PENNSYLVANIA
    18             MEDICAL SOCIETY.
    19                 (C)  ONE REPRESENTATIVE OF INSURANCE.
    20                 (D)  ONE REPRESENTATIVE OF LABOR.
    21                 (E)  ONE REPRESENTATIVE OF BUSINESS.
    22                 (F)  TWO REPRESENTATIVES OF THE GENERAL PUBLIC.
    23         (15)  THE COUNCIL SHALL EXECUTE A REQUEST FOR QUOTATIONS
    24     WITH A THIRD-PARTY VENDOR FOR THE PURPOSE OF DEMONSTRATING A
    25     METHODOLOGY FOR THE COLLECTION, ANALYSIS AND REPORTING OF
    26     HOSPITAL-SPECIFIC COMPLICATION RATES. THE RESULTS OF THIS
    27     DEMONSTRATION SHALL BE SHARED WITH THE GENERAL ASSEMBLY. THE
    28     COUNCIL MAY RECOMMEND THAT THIS METHODOLOGY BE UTILIZED FOR
    29     ITS PUBLIC REPORTING ON COMPARATIVE HOSPITAL COMPLICATION
    30     RATES.
    20030S0387B1045                 - 38 -     

     1     SECTION 2.  SECTION 6(A), (C)(19), (20) AND (21), (D) AND (F)  <--
     2  OF THE ACT ARE AMENDED AND THE SECTION IS AMENDED BY ADDING A
     3  SUBSECTION TO READ:
     4  SECTION 6.  DATA SUBMISSION AND COLLECTION.
     5     (A)  (1)  SUBMISSION OF DATA.--THE COUNCIL IS HEREBY
     6     AUTHORIZED TO COLLECT AND DATA SOURCES ARE HEREBY REQUIRED TO
     7     SUBMIT, UPON REQUEST OF THE COUNCIL, ALL DATA REQUIRED IN
     8     THIS SECTION, ACCORDING TO UNIFORM SUBMISSION FORMATS, CODING
     9     SYSTEMS AND OTHER TECHNICAL SPECIFICATIONS NECESSARY TO
    10     RENDER THE INCOMING DATA SUBSTANTIALLY VALID, CONSISTENT,
    11     COMPATIBLE AND MANAGEABLE USING ELECTRONIC DATA PROCESSING
    12     ACCORDING TO DATA SUBMISSION SCHEDULES, SUCH SCHEDULES TO
    13     AVOID, TO THE EXTENT POSSIBLE, SUBMISSION OF IDENTICAL DATA
    14     FROM MORE THAN ONE DATA SOURCE, ESTABLISHED AND PROMULGATED
    15     BY THE COUNCIL IN REGULATIONS PURSUANT TO ITS AUTHORITY UNDER
    16     SECTION 5(B). IF PAYOR DATA IS REQUESTED BY THE COUNCIL, IT
    17     SHALL, TO THE EXTENT POSSIBLE, BE OBTAINED FROM PRIMARY PAYOR
    18     SOURCES.
    19         (2)  ON AND AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH,    <--
    20     THE COUNCIL MAY ADD OTHER ADDITIONAL DATA ELEMENTS SO LONG AS
    21     THEY ARE PROMULGATED AS REGULATIONS IN ACCORDANCE WITH
    22     SECTION 5(B). PRIOR TO APPROVING REGULATIONS ADDING ANY SUCH
    23     DATA ELEMENTS, THE INDEPENDENT REGULATORY REVIEW COMMISSION
    24     SHALL CONSIDER THE FOLLOWING FACTORS:
    25             (I)  UTILIZATION OF SAMPLING TO THE MAXIMUM EXTENT
    26         POSSIBLE;
    27             (II)  FEASIBILITY OF COLLECTING THE DATA ELEMENTS;
    28             (III)  COSTS AND BENEFITS OF COLLECTION AND
    29         SUBMISSION OF DATA; AND
    30             (IV)  THE EXCHANGE OF DATA ELEMENTS AS OPPOSED TO THE
    20030S0387B1045                 - 39 -     

     1         ADDITION OF DATA ELEMENTS.
     2         (3)  ADDITIONAL DATA REGARDING SPECIFIC CLINICAL
     3     FINDINGS, FOR SPECIAL STUDIES AND REPORTS, MAY BE COLLECTED.
     4     THESE ADDITIONAL DATA ELEMENTS SHALL BE REQUIRED ONLY WHEN
     5     THE COUNCIL PUBLISHES REPORTS THAT IDENTIFY INDIVIDUAL
     6     PHYSICIANS PROVIDING THE SERVICES INCLUDED IN THE REPORT OR
     7     STUDY. THE COUNCIL SHALL DETERMINE THE SUBJECT OR SUBJECTS OF
     8     THESE STUDIES AND REPORTS IN ADVANCE. THE COUNCIL SHALL ADD
     9     NO MORE THAN A NET OF 15 DATA ELEMENTS DIRECTLY OR INDIRECTLY
    10     TO THE HEALTH CARE FACILITY DATA SET OVER ANY FIVE-YEAR
    11     PERIOD. ELEMENTS, IN THE CASE OF HEALTH CARE FACILITIES,
    12     INCLUDED IN THE MANUAL DEVELOPED BY THE NATIONAL UNIFORM
    13     BILLING COMMITTEE, SHALL BE EXEMPT FROM THE 15-ELEMENT NET
    14     LIMIT.
    15     * * *
    16         (2)  EXCEPT AS PROVIDED IN THIS SECTION, THE COUNCIL MAY   <--
    17     ADOPT ANY NATIONALLY RECOGNIZED METHODOLOGY TO ADJUST DATA
    18     SUBMITTED UNDER SUBSECTION (C) FOR SEVERITY OF ILLNESS. EVERY
    19     THREE YEARS AFTER THE EFFECTIVE DATE OF THIS PARAGRAPH, THE
    20     COUNCIL SHALL SOLICIT BIDS FROM THIRD-PARTY VENDORS TO ADJUST
    21     THE DATA. THE SOLICITATION SHALL BE IN ACCORDANCE WITH 62
    22     PA.C.S. (RELATING TO PROCUREMENT). EXCEPT AS PROVIDED IN
    23     SUBPARAGRAPH (I), IN CARRYING OUT ITS RESPONSIBILITIES, THE
    24     COUNCIL SHALL NOT REQUIRE HEALTH CARE FACILITIES TO REPORT
    25     DATA ELEMENTS WHICH ARE NOT INCLUDED IN THE MANUAL DEVELOPED
    26     BY THE NATIONAL UNIFORM BILLING COMMITTEE. THE FOLLOWING
    27     APPLY:
    28             (I)  WITHIN 60 DAYS OF THE EFFECTIVE DATE OF THIS
    29         PARAGRAPH, THE COUNCIL SHALL PUBLISH IN THE PENNSYLVANIA
    30         BULLETIN A LIST OF DISEASES, PROCEDURES AND MEDICAL
    20030S0387B1045                 - 40 -     

     1         CONDITIONS, NOT TO EXCEED 35, FOR WHICH DATA UNDER
     2         SUBSECTIONS (C)(21) AND (D) SHALL BE REQUIRED. THE CHOSEN
     3         LIST SHALL NOT REPRESENT MORE THAN 50% OF TOTAL HOSPITAL
     4         DISCHARGES, BASED UPON THE PREVIOUS YEAR'S HOSPITAL
     5         DISCHARGE DATA. SUBSEQUENT TO THE PUBLICATION OF THE
     6         LIST, ANY DATA SUBMISSION REQUIREMENTS UNDER SUBSECTIONS
     7         (C)(21) AND (D) PREVIOUSLY IN EFFECT SHALL BE NULL AND
     8         VOID FOR DISEASES, PROCEDURES AND MEDICAL CONDITIONS NOT
     9         FOUND ON THE LIST. ALL OTHER DATA ELEMENTS PURSUANT TO
    10         SUBSECTION (C) SHALL CONTINUE TO BE REQUIRED FROM DATA
    11         SOURCES. THE COUNCIL SHALL REVIEW THE LIST AND MAY ADD NO
    12         MORE THAN A NET OF THREE DISEASES, PROCEDURES OR MEDICAL
    13         CONDITIONS PER YEAR OVER A FIVE-YEAR PERIOD STARTING ON
    14         THE EFFECTIVE DATE OF THIS SUBPARAGRAPH. THE ADJUSTED
    15         LIST OF DISEASES, PROCEDURES AND MEDICAL CONDITIONS SHALL
    16         AT NO TIME BE MORE THAN 50% OF TOTAL HOSPITAL DISCHARGES.
    17             (II)  IF THE CURRENT DATA VENDOR IS UNABLE TO
    18         ACHIEVE, ON A PER-CHART BASIS, SAVINGS OF AT LEAST 40% IN
    19         THE COST OF HOSPITAL COMPLIANCE WITH THE DATA ABSTRACTING
    20         AND SUBMISSION REQUIREMENTS OF THIS ACT BY JUNE 30, 2004,
    21         AS COMPARED TO JUNE 30, 2003, THEN THE COUNCIL SHALL
    22         DISQUALIFY THE CURRENT VENDOR AND REOPEN THE BIDDING
    23         PROCESS. THE INDEPENDENT AUDITOR SHALL DETERMINE THE
    24         EXTENT AND VALIDITY OF THE SAVINGS. IN DETERMINING ANY
    25         DEMONSTRATED COST SAVINGS, SURVEYS OF ALL HOSPITALS IN
    26         THIS COMMONWEALTH SHALL BE CONDUCTED AND CONSIDERATION
    27         SHALL BE GIVEN AT A MINIMUM TO:
    28                 (A)  NEW COSTS, IN TERMS OF MAKING THE
    29             METHODOLOGY OPERATIONAL, ASSOCIATED WITH LABORATORY,
    30             PHARMACY AND OTHER INFORMATION SYSTEMS A HOSPITAL IS
    20030S0387B1045                 - 41 -     

     1             REQUIRED TO PURCHASE IN ORDER TO REDUCE HOSPITAL
     2             COMPLIANCE COSTS, INCLUDING THE COST OF ELECTRONIC
     3             TRANSFER OF REQUIRED DATA; AND
     4                 (B)  THE AUDITED DIRECT PERSONNEL AND RELATED
     5             COSTS OF DATA ABSTRACTING AND SUBMISSION REQUIRED.
     6             (III)  REVIEW BY THE INDEPENDENT AUDITOR SHALL
     7         COMMENCE BY MARCH 1, 2004, AND SHALL CONCLUDE WITH A
     8         REPORT OF FINDINGS BY JULY 31, 2004. THE REPORT SHALL BE
     9         DELIVERED TO THE COUNCIL, THE GOVERNOR, THE HEALTH AND
    10         HUMAN SERVICES COMMITTEE OF THE HOUSE OF REPRESENTATIVES
    11         AND THE PUBLIC HEALTH AND WELFARE COMMITTEE OF THE
    12         SENATE.
    13     (A.1)  ABSTRACTION AND TECHNOLOGY WORK GROUP.--
    14         (1)  THE COUNCIL SHALL ESTABLISH A DATA ABSTRACTION AND
    15     TECHNOLOGY WORK GROUP TO PRODUCE RECOMMENDATIONS FOR
    16     IMPROVING AND REFINING THE DATA REQUIRED BY THE COUNCIL AND
    17     REDUCING, THROUGH INNOVATIVE DIRECT DATA COLLECTION
    18     TECHNIQUES, THE COST OF COLLECTING REQUIRED DATA. THE WORK
    19     GROUP SHALL CONSIST OF THE FOLLOWING MEMBERS APPOINTED BY THE
    20     COUNCIL:
    21             (I)  ONE MEMBER REPRESENTING THE OFFICE OF HEALTH
    22         CARE REFORM;
    23             (II)  ONE MEMBER REPRESENTING THE BUSINESS COMMUNITY;
    24             (III)  ONE MEMBER REPRESENTING LABOR;
    25             (IV)  ONE MEMBER REPRESENTING CONSUMERS;
    26             (V)  TWO MEMBERS REPRESENTING PHYSICIANS;
    27             (VI)  TWO MEMBERS REPRESENTING NURSES;
    28             (VII)  TWO MEMBERS REPRESENTING HOSPITALS;
    29             (VIII)  ONE MEMBER REPRESENTING PATIENT ADVOCACY
    30         GROUPS;
    20030S0387B1045                 - 42 -     

     1             (IX)  ONE MEMBER REPRESENTING HEALTH UNDERWRITERS;
     2         AND
     3             (X)  ONE MEMBER REPRESENTING COMMERCIAL INSURANCE
     4         CARRIERS.
     5         (2)  THE WORK GROUP, WITH APPROVAL OF THE COUNCIL, MAY
     6     HIRE AN INDEPENDENT EVALUATOR TO DETERMINE THE VALUE OF
     7     VARIOUS DATA SETS. THE WORK GROUP SHALL HAVE NO MORE THAN ONE
     8     YEAR TO STUDY CURRENT DATA REQUIREMENTS AND METHODS OF
     9     COLLECTING AND TRANSFERRING DATA AND TO MAKE RECOMMENDATIONS
    10     FOR CHANGES TO PRODUCE A 50% OVERALL REDUCTION IN THE COST OF
    11     COLLECTING AND REPORTING REQUIRED DATA TO THE COUNCIL WHILE
    12     MAINTAINING THE SCIENTIFIC CREDIBILITY OF THE COUNCIL'S
    13     ANALYSIS AND REPORTING. THE WORK GROUP RECOMMENDATIONS SHALL
    14     BE PRESENTED TO THE COUNCIL FOR A VOTE.
    15     (C)  DATA ELEMENTS.--FOR EACH COVERED SERVICE PERFORMED IN
    16  PENNSYLVANIA, THE COUNCIL SHALL BE REQUIRED TO COLLECT THE
    17  FOLLOWING DATA ELEMENTS:
    18         * * *                                                      <--
    19         (1)  UNIFORM PATIENT IDENTIFIER, CONTINUOUS ACROSS         <--
    20     MULTIPLE EPISODES AND PROVIDERS;
    21         (2)  PATIENT DATE OF BIRTH;
    22         (3)  PATIENT SEX;
    23         (3.1)  PATIENT RACE, CONSISTENT WITH THE METHOD OF
    24     COLLECTION OF RACE/ETHNICITY DATA BY THE UNITED STATES BUREAU
    25     OF THE CENSUS AND THE UNITED STATES STANDARD CERTIFICATES OF
    26     LIVE BIRTH AND DEATH;
    27         (4)  PATIENT ZIP CODE NUMBER;
    28         (5)  DATE OF ADMISSION;
    29         (6)  DATE OF DISCHARGE;
    30         (7)  PRINCIPAL AND UP TO FIVE SECONDARY DIAGNOSES BY
    20030S0387B1045                 - 43 -     

     1     STANDARD CODE, INCLUDING EXTERNAL CAUSE CODE;
     2         (8)  PRINCIPAL PROCEDURE BY COUNCIL-SPECIFIED STANDARD
     3     CODE AND DATE;
     4         (9)  UP TO THREE SECONDARY PROCEDURES BY COUNCIL-
     5     SPECIFIED STANDARD CODES AND DATES;
     6         (10)  UNIFORM HEALTH CARE FACILITY IDENTIFIER, CONTINUOUS
     7     ACROSS EPISODES, PATIENTS AND PROVIDERS;
     8         (11)  UNIFORM IDENTIFIER OF ADMITTING PHYSICIAN, BY
     9     UNIQUE PHYSICIAN IDENTIFICATION NUMBER ESTABLISHED BY THE
    10     COUNCIL, CONTINUOUS ACROSS EPISODES, PATIENTS AND PROVIDERS;
    11         (12)  UNIFORM IDENTIFIER OF CONSULTING PHYSICIANS, BY
    12     UNIQUE PHYSICIAN IDENTIFICATION NUMBER ESTABLISHED BY THE
    13     COUNCIL, CONTINUOUS ACROSS EPISODES, PATIENTS AND PROVIDERS;
    14         (13)  TOTAL CHARGES OF HEALTH CARE FACILITY, SEGREGATED
    15     INTO MAJOR CATEGORIES, INCLUDING, BUT NOT LIMITED TO, ROOM
    16     AND BOARD, RADIOLOGY, LABORATORY, OPERATING ROOM, DRUGS,
    17     MEDICAL SUPPLIES AND OTHER GOODS AND SERVICES ACCORDING TO
    18     GUIDELINES SPECIFIED BY THE COUNCIL;
    19         (14)  ACTUAL PAYMENTS TO HEALTH CARE FACILITY,
    20     SEGREGATED, IF AVAILABLE, ACCORDING TO THE CATEGORIES
    21     SPECIFIED IN PARAGRAPH (13);
    22         (15)  CHARGES OF EACH PHYSICIAN OR PROFESSIONAL RENDERING
    23     SERVICE RELATING TO AN INCIDENT OF HOSPITALIZATION OR
    24     TREATMENT IN AN AMBULATORY SERVICE FACILITY;
    25         (16)  ACTUAL PAYMENTS TO EACH PHYSICIAN OR PROFESSIONAL
    26     RENDERING SERVICE PURSUANT TO PARAGRAPH (15);
    27         (17)  UNIFORM IDENTIFIER OF PRIMARY PAYOR;
    28         (18)  ZIP CODE NUMBER OF FACILITY WHERE HEALTH CARE
    29     SERVICE IS RENDERED;
    30         (19)  UNIFORM IDENTIFIER FOR PAYOR GROUP CONTRACT NUMBER;
    20030S0387B1045                 - 44 -     

     1     AND                                                            <--
     2         (20)  PATIENT DISCHARGE STATUS[; AND].; [AND]              <--
     3         [(21)  PROVIDER SERVICE EFFECTIVENESS AND PROVIDER         <--
     4     QUALITY PURSUANT TO SECTION 5(D)(4) AND SUBSECTION (D).]       <--
     5     (D)[.];                                                        <--
     6         (22)  ALL EXTERNAL CAUSE OF INJURY CODES, COMMONLY CALLED
     7     E-CODES;
     8         (23)  CODES INDICATING COMPLICATIONS;
     9         (24)  CODES INDICATING INFECTIONS; AND
    10         (25)  BABY AND MOTHER BIRTH CODES.
    11     (D)  [PROVIDER QUALITY AND PROVIDER SERVICE EFFECTIVENESS      <--
    12  DATA ELEMENTS.--IN CARRYING OUT ITS DUTY TO COLLECT DATA ON
    13  PROVIDER QUALITY AND PROVIDER SERVICE EFFECTIVENESS UNDER
    14  SECTION 5(D)(4) AND SUBSECTION (C)(21), THE COUNCIL SHALL DEFINE
    15  A METHODOLOGY TO MEASURE PROVIDER SERVICE EFFECTIVENESS WHICH
    16  MAY INCLUDE ADDITIONAL DATA ELEMENTS TO BE SPECIFIED BY THE
    17  COUNCIL SUFFICIENT TO CARRY OUT ITS RESPONSIBILITIES UNDER
    18  SECTION 5(D)(4). THE COUNCIL MAY ADOPT A NATIONALLY RECOGNIZED
    19  METHODOLOGY OF QUANTIFYING AND COLLECTING DATA ON PROVIDER
    20  QUALITY AND PROVIDER SERVICE EFFECTIVENESS UNTIL SUCH TIME AS
    21  THE COUNCIL HAS THE CAPABILITY OF DEVELOPING ITS OWN METHODOLOGY
    22  AND STANDARD DATA ELEMENTS. THE COUNCIL SHALL INCLUDE IN THE
    23  PENNSYLVANIA UNIFORM CLAIMS AND BILLING FORM A FIELD CONSISTING
    24  OF THE DATA ELEMENTS REQUIRED PURSUANT TO SUBSECTION (C)(21) TO
    25  PROVIDE INFORMATION ON EACH PROVISION OF COVERED SERVICES
    26  SUFFICIENT TO PERMIT ANALYSIS OF PROVIDER QUALITY AND PROVIDER
    27  SERVICE EFFECTIVENESS WITHIN 180 DAYS OF COMMENCEMENT OF ITS
    28  OPERATIONS PURSUANT TO SECTION 4.] QUALITY AND SERVICE            <--
    29  EFFECTIVENESS DATA ELEMENTS.--EXCEPT AS PROVIDED IN SECTION 5
    30  AND SUBSECTION (A)(2):
    20030S0387B1045                 - 45 -     

     1         (1)  THE COUNCIL MAY ADOPT A NATIONALLY RECOGNIZED
     2     METHODOLOGY FOR INTERNAL USE BY THE STAFF OF THE COUNCIL TO
     3     ADJUST THE DATA SUBMITTED UNDER SUBSECTION (C) FOR SEVERITY
     4     OF ILLNESS. EVERY THREE YEARS, THE COUNCIL SHALL SOLICIT BIDS
     5     FROM THIRD-PARTY VENDORS TO ADJUST THE DATA SUBMITTED TO THE
     6     COUNCIL. THE SOLICITATION SHALL BE IN ACCORDANCE WITH 62
     7     PA.C.S. (RELATING TO PROCUREMENT). IN CARRYING OUT ITS
     8     RESPONSIBILITIES, THE COUNCIL SHALL NOT REQUIRE HEALTH CARE
     9     FACILITIES TO REPORT DATA ELEMENTS WHICH ARE NOT INCLUDED IN
    10     THE MANUAL DEVELOPED BY THE NATIONAL UNIFORM BILLING
    11     COMMITTEE.
    12         (2)  IN CARRYING OUT ITS RESPONSIBILITIES, THE COUNCIL IN  <--
    13     CARRYING OUT ITS RESPONSIBILITIES, THE COUNCIL SHALL NOT
    14     REQUIRE HEALTH CARE INSURERS TO REPORT ON DATA ELEMENTS THAT
    15     ARE NOT REPORTED TO NATIONALLY RECOGNIZED ACCREDITING
    16     ORGANIZATIONS, TO THE DEPARTMENT OF HEALTH OR TO THE
    17     INSURANCE DEPARTMENT IN QUARTERLY OR ANNUAL REPORTS. THE
    18     COUNCIL SHALL NOT REQUIRE REPORTING BY HEALTH CARE INSURERS
    19     IN DIFFERENT FORMATS THAN ARE REQUIRED FOR REPORTING TO
    20     NATIONALLY RECOGNIZED ACCREDITING ORGANIZATIONS OR ON
    21     QUARTERLY OR ANNUAL REPORTS SUBMITTED TO THE DEPARTMENT OF
    22     HEALTH OR TO THE INSURANCE DEPARTMENT. THE COUNCIL MAY ADOPT
    23     THE QUALITY FINDINGS AS REPORTED TO NATIONALLY RECOGNIZED
    24     ACCREDITING ORGANIZATIONS.
    25     * * *                                                          <--
    26     (F)  OTHER DATA REQUIRED TO BE SUBMITTED.--PROVIDERS [ARE
    27  HEREBY] MAY BE REQUIRED TO SUBMIT AND THE COUNCIL IS HEREBY
    28  AUTHORIZED TO COLLECT, IN ACCORDANCE WITH SUBMISSION DATES AND
    29  SCHEDULES ESTABLISHED BY THE COUNCIL, THE FOLLOWING ADDITIONAL
    30  DATA, PROVIDED SUCH DATA IS NOT AVAILABLE TO THE COUNCIL FROM
    20030S0387B1045                 - 46 -     

     1  PUBLIC RECORDS:
     2         (1)  AUDITED ANNUAL FINANCIAL REPORTS OF ALL HOSPITALS
     3     AND AMBULATORY SERVICE FACILITIES PROVIDING COVERED SERVICES
     4     AS DEFINED IN SECTION 3.
     5         (2)  THE MEDICARE COST REPORT (OMB FORM 2552 OR
     6     EQUIVALENT FEDERAL FORM), OR THE AG-12 FORM FOR MEDICAL
     7     ASSISTANCE OR SUCCESSOR FORMS, WHETHER COMPLETED OR PARTIALLY
     8     COMPLETED, AND INCLUDING THE SETTLED MEDICARE COST REPORT AND
     9     THE CERTIFIED AG-12 FORM.
    10         [(3)  ADDITIONAL DATA, INCLUDING, BUT NOT LIMITED TO,
    11     DATA WHICH CAN BE USED TO PROVIDE AT LEAST THE FOLLOWING
    12     INFORMATION:
    13             (I)  THE INCIDENCE OF MEDICAL AND SURGICAL PROCEDURES
    14         IN THE POPULATION FOR INDIVIDUAL PROVIDERS;
    15             (II)  PHYSICIANS WHO PROVIDE COVERED SERVICES AND
    16         ACCEPT MEDICAL ASSISTANCE PATIENTS;
    17             (III)  PHYSICIANS WHO PROVIDE COVERED SERVICES AND
    18         ACCEPT MEDICARE ASSIGNMENT AS FULL PAYMENT;
    19             (V)  MORTALITY RATES FOR SPECIFIED DIAGNOSES AND
    20         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
    21         PROVIDERS;
    22             (VI)  RATES OF INFECTION FOR SPECIFIED DIAGNOSES AND
    23         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
    24         PROVIDERS;
    25             (VII)  MORBIDITY RATES FOR SPECIFIED DIAGNOSES AND
    26         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
    27         PROVIDERS;
    28             (VIII)  READMISSION RATES FOR SPECIFIED DIAGNOSES AND
    29         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
    30         PROVIDERS; AND
    20030S0387B1045                 - 47 -     

     1             (IX)  RATE OF INCIDENCE OF POSTDISCHARGE PROFESSIONAL
     2         CARE FOR SELECTED DIAGNOSES AND PROCEDURES, GROUPED BY
     3         SEVERITY, FOR INDIVIDUAL PROVIDERS.
     4         (4)  ANY OTHER DATA THE COUNCIL REQUIRES TO CARRY OUT ITS
     5     RESPONSIBILITIES PURSUANT TO SECTION 5(D).]
     6     * * *
     7     (G.1)  REVIEW AND CORRECTION OF DATA.--THE COUNCIL SHALL
     8     (E)  RESERVE FIELD UTILIZATION AND ADDITION OR DELETION OF     <--
     9  DATA ELEMENTS.--THE COUNCIL SHALL INCLUDE IN THE PENNSYLVANIA
    10  UNIFORM CLAIMS AND BILLING FORM A RESERVE FIELD. THE COUNCIL MAY
    11  UTILIZE THE RESERVE FIELD BY ADDING OTHER DATA ELEMENTS BEYOND
    12  THOSE REQUIRED TO CARRY OUT ITS RESPONSIBILITIES UNDER SECTION
    13  5(D)(3) AND (4) AND SUBSECTIONS (C) AND (D), OR THE COUNCIL MAY
    14  DELETE DATA ELEMENTS FROM THE PENNSYLVANIA UNIFORM CLAIMS AND
    15  BILLING FORM ONLY BY A MAJORITY VOTE OF THE COUNCIL AND ONLY
    16  PURSUANT TO THE FOLLOWING PROCEDURE:
    17         (1)  THE COUNCIL SHALL OBTAIN A COST-BENEFIT ANALYSIS OF
    18     THE PROPOSED ADDITION OR DELETION WHICH SHALL INCLUDE THE
    19     COST TO DATA SOURCES OF ANY PROPOSED ADDITIONS.
    20         (2)  THE COUNCIL SHALL PUBLISH NOTICE OF THE PROPOSED
    21     ADDITION OR DELETION, ALONG WITH A COPY OR SUMMARY OF THE
    22     COST-BENEFIT ANALYSIS, IN THE PENNSYLVANIA BULLETIN, AND SUCH
    23     NOTICE SHALL INCLUDE PROVISION FOR A 60-DAY COMMENT PERIOD.
    24         (3)  THE COUNCIL MAY HOLD ADDITIONAL HEARINGS OR REQUEST
    25     SUCH OTHER REPORTS AS IT DEEMS NECESSARY AND SHALL CONSIDER
    26     THE COMMENTS RECEIVED DURING THE 60-DAY COMMENT PERIOD AND
    27     ANY ADDITIONAL INFORMATION GAINED THROUGH SUCH HEARINGS OR
    28     OTHER REPORTS IN MAKING A FINAL DETERMINATION ON THE PROPOSED
    29     ADDITION OR DELETION.
    30     (F)  OTHER DATA REQUIRED TO BE SUBMITTED.--PROVIDERS ARE
    20030S0387B1045                 - 48 -     

     1  HEREBY REQUIRED TO SUBMIT AND THE COUNCIL IS HEREBY AUTHORIZED
     2  TO COLLECT, IN ACCORDANCE WITH SUBMISSION DATES AND SCHEDULES
     3  ESTABLISHED BY THE COUNCIL, THE FOLLOWING ADDITIONAL DATA,
     4  PROVIDED SUCH DATA IS NOT AVAILABLE TO THE COUNCIL FROM PUBLIC
     5  RECORDS:
     6         (1)  AUDITED ANNUAL FINANCIAL REPORTS OF ALL HOSPITALS
     7     AND AMBULATORY SERVICE FACILITIES PROVIDING COVERED SERVICES
     8     AS DEFINED IN SECTION 3.
     9         (2)  THE MEDICARE COST REPORT (OMB FORM 2552 OR
    10     EQUIVALENT FEDERAL FORM), OR THE AG-12 FORM FOR MEDICAL
    11     ASSISTANCE OR SUCCESSOR FORMS, WHETHER COMPLETED OR PARTIALLY
    12     COMPLETED, AND INCLUDING THE SETTLED MEDICARE COST REPORT AND
    13     THE CERTIFIED AG-12 FORM.
    14         (3)  ADDITIONAL DATA, INCLUDING, BUT NOT LIMITED TO, DATA
    15     WHICH CAN BE USED TO PROVIDE AT LEAST THE FOLLOWING
    16     INFORMATION:
    17             (I)  THE INCIDENCE OF MEDICAL AND SURGICAL PROCEDURES
    18         IN THE POPULATION FOR INDIVIDUAL PROVIDERS;
    19             (II)  PHYSICIANS WHO PROVIDE COVERED SERVICES AND
    20         ACCEPT MEDICAL ASSISTANCE PATIENTS;
    21             (III)  PHYSICIANS WHO PROVIDE COVERED SERVICES AND
    22         ACCEPT MEDICARE ASSIGNMENT AS FULL PAYMENT;
    23             (V)  MORTALITY RATES FOR SPECIFIED DIAGNOSES AND
    24         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
    25         PROVIDERS;
    26             (VI)  RATES OF INFECTION FOR SPECIFIED DIAGNOSES AND
    27         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
    28         PROVIDERS;
    29             (VII)  MORBIDITY RATES FOR SPECIFIED DIAGNOSES AND
    30         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
    20030S0387B1045                 - 49 -     

     1         PROVIDERS;
     2             (VIII)  READMISSION RATES FOR SPECIFIED DIAGNOSES AND
     3         TREATMENTS, GROUPED BY SEVERITY, FOR INDIVIDUAL
     4         PROVIDERS; AND
     5             (IX)  RATE OF INCIDENCE OF POSTDISCHARGE PROFESSIONAL
     6         CARE FOR SELECTED DIAGNOSES AND PROCEDURES, GROUPED BY
     7         SEVERITY, FOR INDIVIDUAL PROVIDERS.
     8         (4)  ANY OTHER DATA THE COUNCIL REQUIRES TO CARRY OUT ITS
     9     RESPONSIBILITIES PURSUANT TO SECTION 5(D).
    10     (F.1)  REVIEW AND CORRECTION OF DATA.--THE COUNCIL SHALL
    11  PROVIDE A REASONABLE PERIOD FOR DATA SOURCES TO REVIEW AND
    12  CORRECT THE DATA SUBMITTED UNDER SECTION 6 WHICH THE COUNCIL
    13  INTENDS TO PREPARE AND ISSUE IN REPORTS TO THE GENERAL ASSEMBLY,
    14  TO THE GENERAL PUBLIC OR IN SPECIAL STUDIES AND REPORTS UNDER
    15  SECTION 11. WHEN CORRECTIONS ARE PROVIDED, THE COUNCIL SHALL
    16  CORRECT THE APPROPRIATE DATA IN ITS DATA FILES AND SUBSEQUENT
    17  REPORTS.
    18     * * *                                                          <--
    19     (G)  ALLOWANCE FOR CLARIFICATION OR DISSENTS.--THE COUNCIL     <--
    20  SHALL MAINTAIN A FILE OF WRITTEN STATEMENTS SUBMITTED BY DATA
    21  SOURCES WHO WISH TO PROVIDE AN EXPLANATION OF DATA THAT THEY
    22  FEEL MIGHT BE MISLEADING OR MISINTERPRETED. THE COUNCIL SHALL
    23  PROVIDE ACCESS TO SUCH FILE TO ANY PERSON AND SHALL, WHERE
    24  PRACTICAL, IN ITS REPORTS AND DATA FILES INDICATE THE
    25  AVAILABILITY OF SUCH STATEMENTS. WHEN THE COUNCIL AGREES WITH
    26  SUCH STATEMENTS, IT SHALL CORRECT THE APPROPRIATE DATA AND
    27  COMMENTS IN ITS DATA FILES AND SUBSEQUENT REPORTS.
    28     (G.1)  ALLOWANCE FOR CORRECTION.--THE COUNCIL SHALL VERIFY
    29  THE DATA SUBMITTED BY HOSPITALS PURSUANT TO SUBSECTION (C)(22)
    30  THROUGH (25) WITHIN 60 DAYS OF RECEIPT. THE COUNCIL MAY ALLOW
    20030S0387B1045                 - 50 -     

     1  HOSPITALS TO MAKE CHANGES TO THE DATA SUBMITTED DURING THE
     2  VERIFICATION PERIOD. AFTER THE VERIFICATION PERIOD BUT WITHIN 45
     3  DAYS OF RECEIPT OF THE ADJUSTED HOSPITAL DATA, THE COUNCIL SHALL
     4  RISK ADJUST THE INFORMATION AND PROVIDE REPORTS TO THE PATIENT
     5  SAFETY COMMITTEE OF THE RELEVANT HOSPITAL.
     6     (H)  AVAILABILITY OF DATA.--NOTHING IN THIS ACT SHALL
     7  PROHIBIT A PURCHASER FROM OBTAINING FROM ITS HEALTH CARE
     8  INSURER, NOR RELIEVE SAID HEALTH CARE INSURER FROM THE
     9  OBLIGATION OF PROVIDING SAID PURCHASER, ON TERMS CONSISTENT WITH
    10  PAST PRACTICES, DATA PREVIOUSLY PROVIDED OR ADDITIONAL DATA NOT
    11  CURRENTLY PROVIDED TO SAID PURCHASER BY SAID HEALTH CARE INSURER
    12  PURSUANT TO ANY EXISTING OR FUTURE ARRANGEMENT, AGREEMENT OR
    13  UNDERSTANDING.
    14     SECTION 3.  SECTIONS 7(A), 10(B)(5), 12(B) AND 19 OF THE ACT   <--
    15  ARE AMENDED TO READ:
    16  SECTION 7.  DATA DISSEMINATION AND PUBLICATION.
    17     [(A)  PUBLIC REPORTS.--SUBJECT TO THE RESTRICTIONS ON ACCESS
    18  TO COUNCIL DATA SET FORTH IN SECTION 10 AND UTILIZING THE DATA
    19  COLLECTED UNDER SECTION 6 AS WELL AS OTHER DATA, RECORDS AND
    20  MATTERS OF RECORD AVAILABLE TO IT, THE COUNCIL SHALL PREPARE AND
    21  ISSUE REPORTS TO THE GENERAL ASSEMBLY AND TO THE GENERAL PUBLIC,
    22  ACCORDING TO THE FOLLOWING PROVISIONS:
    23         (1)  THE COUNCIL SHALL, FOR EVERY PROVIDER WITHIN THE
    24     COMMONWEALTH AND WITHIN APPROPRIATE REGIONS AND SUBREGIONS
    25     WITHIN THE COMMONWEALTH AND FOR THOSE INPATIENT AND
    26     OUTPATIENT SERVICES WHICH, WHEN RANKED BY ORDER OF FREQUENCY,
    27     ACCOUNT FOR AT LEAST 65% OF ALL COVERED SERVICES AND WHICH,
    28     WHEN RANKED BY ORDER OF TOTAL PAYMENTS, ACCOUNT FOR AT LEAST
    29     65% OF TOTAL PAYMENTS, PREPARE AND ISSUE REPORTS THAT AT
    30     LEAST PROVIDE INFORMATION ON THE FOLLOWING:
    20030S0387B1045                 - 51 -     

     1             (I)  COMPARISONS AMONG ALL PROVIDERS OF PAYMENTS
     2         RECEIVED, CHARGES, POPULATION-BASED ADMISSION OR
     3         INCIDENCE RATES, AND PROVIDER SERVICE EFFECTIVENESS, SUCH
     4         COMPARISONS TO BE GROUPED ACCORDING TO DIAGNOSIS AND
     5         SEVERITY, AND TO IDENTIFY EACH PROVIDER BY NAME AND TYPE
     6         OR SPECIALTY.
     7             (II)  COMPARISONS AMONG ALL PROVIDERS, EXCEPT
     8         PHYSICIANS, OF INPATIENT AND OUTPATIENT CHARGES AND
     9         PAYMENTS FOR ROOM AND BOARD, ANCILLARY SERVICES, DRUGS,
    10         EQUIPMENT AND SUPPLIES AND TOTAL SERVICES, SUCH
    11         COMPARISONS TO BE GROUPED ACCORDING TO PROVIDER QUALITY
    12         AND PROVIDER SERVICE EFFECTIVENESS AND ACCORDING TO
    13         DIAGNOSIS AND SEVERITY, AND TO IDENTIFY EACH HEALTH CARE
    14         FACILITY BY NAME AND TYPE.
    15             (III)  UNTIL AND UNLESS A METHODOLOGY TO MEASURE
    16         PROVIDER QUALITY AND PROVIDER SERVICE EFFECTIVENESS
    17         PURSUANT TO SECTIONS 5(D)(4) AND 6(C) AND (D) IS
    18         AVAILABLE TO THE COUNCIL, COMPARISONS AMONG ALL
    19         PROVIDERS, GROUPED ACCORDING TO DIAGNOSIS, PROCEDURE AND
    20         SEVERITY, WHICH IDENTIFY FACILITIES BY NAME AND TYPE AND
    21         PHYSICIANS BY NAME AND SPECIALTY, OF CHARGES AND PAYMENTS
    22         RECEIVED, READMISSION RATES, MORTALITY RATES, MORBIDITY
    23         RATES AND INFECTION RATES. FOLLOWING ADOPTION OF THE
    24         METHODOLOGY SPECIFIED IN SECTIONS 5(D)(4) AND 6(C) AND
    25         (D), THE COUNCIL MAY, AT ITS DISCRETION, DISCONTINUE
    26         PUBLICATION OF THIS COMPONENT OF THE REPORT.
    27             (IV)  THE INCIDENCE RATE OF SELECTED MEDICAL OR
    28         SURGICAL PROCEDURES, THE PROVIDER SERVICE EFFECTIVENESS
    29         AND THE PAYMENTS RECEIVED FOR THOSE PROVIDERS, IDENTIFIED
    30         BY THE NAME AND TYPE OR SPECIALTY, FOR WHICH THESE
    20030S0387B1045                 - 52 -     

     1         ELEMENTS VARY SIGNIFICANTLY FROM THE NORMS FOR ALL
     2         PROVIDERS.
     3         (2)  IN PREPARING ITS REPORTS UNDER PARAGRAPH (1), THE
     4     COUNCIL SHALL ENSURE THAT FACTORS WHICH HAVE THE EFFECT OF
     5     EITHER REDUCING PROVIDER REVENUE OR INCREASING PROVIDER
     6     COSTS, AND OTHER FACTORS BEYOND A PROVIDER'S CONTROL WHICH
     7     REDUCE PROVIDER COMPETITIVENESS IN THE MARKET PLACE, ARE
     8     EXPLAINED IN THE REPORTS. IT SHALL ALSO ENSURE THAT ANY
     9     CLARIFICATIONS AND DISSENTS SUBMITTED BY INDIVIDUAL PROVIDERS
    10     UNDER SECTION 6(G) ARE NOTED IN ANY REPORTS THAT INCLUDE
    11     RELEASE OF DATA ON THAT INDIVIDUAL PROVIDER.
    12         (3)  THE COUNCIL SHALL, FOR ALL PROVIDERS WITHIN THE
    13     COMMONWEALTH AND WITHIN APPROPRIATE REGIONS AND SUBREGIONS
    14     WITHIN THE COMMONWEALTH, PREPARE AND ISSUE QUARTERLY REPORTS
    15     THAT AT LEAST PROVIDE INFORMATION ON THE NUMBER OF
    16     PHYSICIANS, BY SPECIALTY, ON THE STAFF OF EACH HOSPITAL OR
    17     AMBULATORY SERVICE FACILITY AND THOSE PHYSICIANS ON THE STAFF
    18     THAT ACCEPT MEDICARE ASSIGNMENT AS FULL PAYMENT AND THAT
    19     ACCEPT MEDICAL ASSISTANCE PATIENTS.
    20         (4)  THE COUNCIL SHALL PUBLISH ALL REPORTS REQUIRED IN
    21     THIS SECTION IN THE PENNSYLVANIA BULLETIN AND SHALL PUBLISH,
    22     IN AT LEAST ONE NEWSPAPER OF GENERAL CIRCULATION IN EACH
    23     SUBREGION WITHIN THE COMMONWEALTH, REPORTS ON THE PROVIDERS
    24     IN THAT SUBREGION AND SUBREGIONS ADJACENT TO IT. IN ADDITION,
    25     THE COUNCIL SHALL ADVERTISE ANNUALLY THE AVAILABILITY OF
    26     THESE REPORTS AND THE CHARGE FOR DUPLICATION IN THE
    27     PENNSYLVANIA BULLETIN AND IN AT LEAST ONE NEWSPAPER OF
    28     GENERAL CIRCULATION IN EACH SUBREGION WITHIN THE COMMONWEALTH
    29     AT LEAST ONCE IN EACH CALENDAR QUARTER.]
    30     (A)  PUBLIC REPORTS.--SUBJECT TO THE RESTRICTIONS ON ACCESS
    20030S0387B1045                 - 53 -     

     1  TO COUNCIL DATA SET FORTH IN SECTION 10 AND UTILIZING THE DATA
     2  COLLECTED UNDER SECTION 6 AS WELL AS OTHER DATA, RECORDS AND
     3  MATTERS OF RECORD AVAILABLE TO IT, THE COUNCIL SHALL PREPARE AND
     4  ISSUE REPORTS TO THE GENERAL ASSEMBLY AND TO THE GENERAL PUBLIC,
     5  ACCORDING TO THE FOLLOWING PROVISIONS:
     6         (1)  THE COUNCIL SHALL, FOR EVERY PROVIDER OF BOTH
     7     INPATIENT AND OUTPATIENT SERVICES WITHIN THIS COMMONWEALTH
     8     AND WITHIN APPROPRIATE REGIONS AND SUBREGIONS, PREPARE AND
     9     ISSUE REPORTS ON PROVIDER QUALITY AND SERVICE EFFECTIVENESS
    10     ON DISEASES OR PROCEDURES THAT, WHEN RANKED BY VOLUME, COST,
    11     PAYMENT AND HIGH VARIATION IN OUTCOME, REPRESENT THE BEST
    12     OPPORTUNITY TO IMPROVE OVERALL PROVIDER QUALITY, IMPROVE
    13     PATIENT SAFETY AND PROVIDE OPPORTUNITIES FOR COST REDUCTION.
    14     THESE REPORTS SHALL PROVIDE COMPARATIVE INFORMATION ON THE
    15     FOLLOWING:
    16             (I)  DIFFERENCES IN MORTALITY RATES; DIFFERENCES IN
    17         LENGTH OF STAY; DIFFERENCES IN COMPLICATION RATES;
    18         DIFFERENCES IN READMISSION RATES; DIFFERENCES IN
    19         INFECTION RATES; AND OTHER COMPARATIVE OUTCOME MEASURES
    20         THE COUNCIL MAY DEVELOP THAT WILL ALLOW PURCHASERS,
    21         PROVIDERS AND CONSUMERS TO MAKE PURCHASING AND QUALITY
    22         IMPROVEMENT DECISIONS BASED UPON QUALITY PATIENT CARE AND
    23         TO RESTRAIN COSTS.
    24             (II)  THE INCIDENCE RATE OF SELECTED MEDICAL OR
    25         SURGICAL PROCEDURES, THE QUALITY AND SERVICE
    26         EFFECTIVENESS AND THE PAYMENTS RECEIVED FOR THOSE
    27         PROVIDERS, IDENTIFIED BY THE NAME AND TYPE OR SPECIALTY,
    28         FOR WHICH THESE ELEMENTS VARY SIGNIFICANTLY FROM THE
    29         NORMS FOR ALL PROVIDERS.
    30         (2)  IN PREPARING ITS REPORTS UNDER PARAGRAPH (1), THE
    20030S0387B1045                 - 54 -     

     1     COUNCIL SHALL ENSURE THAT FACTORS WHICH HAVE THE EFFECT OF
     2     EITHER REDUCING PROVIDER REVENUE OR INCREASING PROVIDER COSTS
     3     AND OTHER FACTORS BEYOND A PROVIDER'S CONTROL WHICH REDUCE
     4     PROVIDER COMPETITIVENESS IN THE MARKETPLACE ARE EXPLAINED IN
     5     THE REPORTS. THE COUNCIL 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     * * *                                                          <--
    10  SECTION 10.  ACCESS TO COUNCIL DATA.
    11     * * *
    12     (B)  LIMITATIONS ON ACCESS.--UNLESS SPECIFICALLY PROVIDED FOR
    13  IN THIS ACT, NEITHER THE COUNCIL NOR ANY CONTRACTING SYSTEM
    14  VENDOR SHALL RELEASE AND NO DATA SOURCE, PERSON, MEMBER OF THE
    15  PUBLIC OR OTHER USER OF ANY DATA OF THE COUNCIL SHALL GAIN
    16  ACCESS TO:
    17         * * *
    18     (B)  RAW DATA REPORTS AND COMPUTER ACCESS TO COUNCIL DATA.--   <--
    19  THE COUNCIL SHALL PROVIDE SPECIAL REPORTS DERIVED FROM RAW DATA
    20  AND A MEANS FOR COMPUTER-TO-COMPUTER ACCESS TO ITS RAW DATA TO
    21  ANY PURCHASER, PURSUANT TO SECTION 10(F). THE COUNCIL SHALL
    22  PROVIDE SUCH REPORTS AND COMPUTER-TO-COMPUTER ACCESS, AT ITS
    23  DISCRETION, TO OTHER PARTIES, PURSUANT TO SECTION 10(G). THE
    24  COUNCIL SHALL PROVIDE THESE SPECIAL REPORTS AND COMPUTER-TO-
    25  COMPUTER ACCESS IN AS TIMELY A FASHION AS THE COUNCIL'S
    26  RESPONSIBILITIES TO PUBLISH THE PUBLIC REPORTS REQUIRED IN THIS
    27  SECTION WILL ALLOW. ANY SUCH PROVISION OF SPECIAL REPORTS OR
    28  COMPUTER-TO-COMPUTER ACCESS BY THE COUNCIL SHALL BE MADE ONLY
    29  SUBJECT TO THE RESTRICTIONS ON ACCESS TO RAW DATA SET FORTH IN
    30  SECTION 10(B) AND ONLY AFTER PAYMENT FOR COSTS OF PREPARATION OR
    20030S0387B1045                 - 55 -     

     1  DUPLICATION PURSUANT TO SECTION 10(F) OR (G).
     2     SECTION 3.  SECTION 8 OF THE ACT IS REENACTED TO READ:
     3  SECTION 8.  HEALTH CARE FOR THE MEDICALLY INDIGENT.
     4     (A)  DECLARATION OF POLICY.--THE GENERAL ASSEMBLY FINDS THAT
     5  EVERY PERSON IN THIS COMMONWEALTH SHOULD RECEIVE TIMELY AND
     6  APPROPRIATE HEALTH CARE SERVICES FROM ANY PROVIDER OPERATING IN
     7  THIS COMMONWEALTH; THAT, AS A CONTINUING CONDITION OF LICENSURE,
     8  EACH PROVIDER SHOULD OFFER AND PROVIDE MEDICALLY NECESSARY,
     9  LIFESAVING AND EMERGENCY HEALTH CARE SERVICES TO EVERY PERSON IN
    10  THIS COMMONWEALTH, REGARDLESS OF FINANCIAL STATUS OR ABILITY TO
    11  PAY; AND THAT HEALTH CARE FACILITIES MAY TRANSFER PATIENTS ONLY
    12  IN INSTANCES WHERE THE FACILITY LACKS THE STAFF OR FACILITIES TO
    13  PROPERLY RENDER DEFINITIVE TREATMENT.
    14     (B)  STUDIES ON INDIGENT CARE.--TO REDUCE THE UNDUE BURDEN ON
    15  THE SEVERAL PROVIDERS THAT DISPROPORTIONATELY TREAT MEDICALLY
    16  INDIGENT PEOPLE ON AN UNCOMPENSATED BASIS, TO CONTAIN THE LONG-
    17  TERM COSTS GENERATED BY UNTREATED OR DELAYED TREATMENT OF
    18  ILLNESS AND DISEASE AND TO DETERMINE THE MOST APPROPRIATE MEANS
    19  OF TREATING AND FINANCING THE TREATMENT OF MEDICALLY INDIGENT
    20  PERSONS, THE COUNCIL, AT THE REQUEST OF THE GOVERNOR OR THE
    21  GENERAL ASSEMBLY, MAY UNDERTAKE STUDIES AND UTILIZE ITS CURRENT
    22  DATA BASE TO:
    23         (1)  STUDY AND ANALYZE THE MEDICALLY INDIGENT POPULATION,
    24     THE MAGNITUDE OF UNCOMPENSATED CARE FOR THE MEDICALLY
    25     INDIGENT, THE DEGREE OF ACCESS TO AND THE RESULT OF ANY LACK
    26     OF ACCESS BY THE MEDICALLY INDIGENT TO APPROPRIATE CARE, THE
    27     TYPES OF PROVIDERS AND THE SETTINGS IN WHICH THEY PROVIDE
    28     INDIGENT CARE AND THE COST OF THE PROVISION OF THAT CARE
    29     PURSUANT TO SUBSECTION (C).
    30         (2)  DETERMINE, FROM STUDIES UNDERTAKEN UNDER PARAGRAPH
    20030S0387B1045                 - 56 -     

     1     (1), A DEFINITION OF THE MEDICALLY INDIGENT POPULATION AND
     2     THE MOST APPROPRIATE METHOD FOR THE DELIVERY OF TIMELY AND
     3     APPROPRIATE HEALTH CARE SERVICES TO THE MEDICALLY INDIGENT.
     4     (C)  STUDIES.--THE COUNCIL SHALL CONDUCT STUDIES PURSUANT TO
     5  SUBSECTION (B)(1) AND THEREAFTER REPORT TO THE GOVERNOR AND THE
     6  GENERAL ASSEMBLY THE RESULTS OF THE STUDIES AND ITS
     7  RECOMMENDATIONS. THE COUNCIL MAY CONTRACT WITH AN INDEPENDENT
     8  VENDOR TO CONDUCT THE STUDY IN ACCORDANCE WITH THE PROVISIONS
     9  FOR SELECTING VENDORS IN SECTION 16. THE STUDY SHALL INCLUDE,
    10  BUT NOT BE LIMITED TO, THE FOLLOWING:
    11         (1)  THE NUMBER AND CHARACTERISTICS OF THE MEDICALLY
    12     INDIGENT POPULATION, INCLUDING SUCH FACTORS AS INCOME,
    13     EMPLOYMENT STATUS, HEALTH STATUS, PATTERNS OF HEALTH CARE
    14     UTILIZATION, TYPE OF HEALTH CARE NEEDED AND UTILIZED,
    15     ELIGIBILITY FOR HEALTH CARE INSURANCE, DISTRIBUTION OF THIS
    16     POPULATION ON A GEOGRAPHIC BASIS AND BY AGE, SEX AND RACIAL
    17     OR LINGUISTIC CHARACTERISTICS, AND THE CHANGES IN THESE
    18     CHARACTERISTICS, INCLUDING THE FOLLOWING:
    19             (I)  THE NEEDS AND PROBLEMS OF INDIGENT PERSONS IN
    20         URBAN AREAS;
    21             (II)  THE NEEDS AND PROBLEMS OF INDIGENT PERSONS IN
    22         RURAL AREAS;
    23             (III)  THE NEEDS AND PROBLEMS OF INDIGENT PERSONS WHO
    24         ARE MEMBERS OF RACIAL OR LINGUISTIC MINORITIES;
    25             (IV)  THE NEEDS AND PROBLEMS OF INDIGENT PERSONS IN
    26         AREAS OF HIGH UNEMPLOYMENT; AND
    27             (V)  THE NEEDS AND PROBLEMS OF THE UNDERINSURED;
    28         (2)  THE DEGREE OF AND ANY CHANGE IN ACCESS OF THIS
    29     POPULATION TO SOURCES OF HEALTH CARE, INCLUDING HOSPITALS,
    30     PHYSICIANS AND OTHER PROVIDERS;
    20030S0387B1045                 - 57 -     

     1         (3)  THE DISTRIBUTION AND MEANS OF FINANCING INDIGENT
     2     CARE BETWEEN AND AMONG PROVIDERS, INSURERS, GOVERNMENT,
     3     PURCHASERS AND CONSUMERS, AND THE EFFECT OF THAT DISTRIBUTION
     4     ON EACH;
     5         (4)  THE MAJOR TYPES OF CARE RENDERED TO THE INDIGENT,
     6     THE SETTING IN WHICH EACH TYPE OF CARE IS RENDERED AND THE
     7     NEED FOR ADDITIONAL CARE OF EACH TYPE BY THE INDIGENT;
     8         (5)  THE LIKELY IMPACT OF CHANGES IN THE HEALTH DELIVERY
     9     SYSTEM, INCLUDING MANAGED CARE ENTITIES, AND THE EFFECTS OF
    10     COST CONTAINMENT IN THE COMMONWEALTH ON THE ACCESS TO,
    11     AVAILABILITY OF AND FINANCING OF NEEDED CARE FOR THE
    12     INDIGENT, INCLUDING THE IMPACT ON PROVIDERS WHICH PROVIDE A
    13     DISPROPORTIONATE AMOUNT OF CARE TO THE INDIGENT;
    14         (6)  THE DISTRIBUTION OF DELIVERED CARE AND ACTUAL COST
    15     TO RENDER SUCH CARE BY PROVIDER, REGION AND SUBREGION;
    16         (7)  THE PROVISION OF CARE TO THE INDIGENT THROUGH
    17     IMPROVEMENTS IN THE PRIMARY HEALTH CARE SYSTEM, INCLUDING THE
    18     MANAGEMENT OF NEEDED HOSPITAL CARE BY PRIMARY CARE PROVIDERS;
    19         (8)  INNOVATIVE MEANS TO FINANCE AND DELIVER CARE TO THE
    20     MEDICALLY INDIGENT; AND
    21         (9)  REDUCTION IN THE DEPENDENCE OF INDIGENT PERSONS ON
    22     HOSPITAL SERVICES THROUGH IMPROVEMENTS IN PREVENTIVE HEALTH
    23     MEASURES.
    24     SECTION 4.  SECTIONS 9 AND 10 OF THE ACT ARE REENACTED AND
    25  AMENDED TO READ:
    26  SECTION 9.  MANDATED HEALTH BENEFITS.
    27     IN RELATION TO CURRENT LAW OR PROPOSED LEGISLATION, THE
    28  COUNCIL SHALL, UPON THE REQUEST OF THE APPROPRIATE COMMITTEE
    29  CHAIRMAN IN THE SENATE AND IN THE HOUSE OF REPRESENTATIVES OR
    30  UPON THE REQUEST OF THE SECRETARY OF HEALTH, PROVIDE INFORMATION
    20030S0387B1045                 - 58 -     

     1  ON THE PROPOSED MANDATED HEALTH BENEFIT PURSUANT TO THE
     2  FOLLOWING:
     3         (1)  THE GENERAL ASSEMBLY HEREBY DECLARES THAT PROPOSALS
     4     FOR MANDATED HEALTH BENEFITS OR MANDATED HEALTH INSURANCE
     5     COVERAGE SHOULD BE ACCOMPANIED BY ADEQUATE, INDEPENDENTLY
     6     CERTIFIED DOCUMENTATION DEFINING THE SOCIAL AND FINANCIAL
     7     IMPACT AND MEDICAL EFFICACY OF THE PROPOSAL. TO THAT END THE
     8     COUNCIL, UPON RECEIPT OF SUCH REQUESTS, IS HEREBY AUTHORIZED
     9     TO CONDUCT A PRELIMINARY REVIEW OF THE MATERIAL SUBMITTED BY
    10     BOTH PROPONENTS AND OPPONENTS CONCERNING THE PROPOSED
    11     MANDATED BENEFIT. IF, AFTER THIS PRELIMINARY REVIEW, THE
    12     COUNCIL IS SATISFIED THAT BOTH PROPONENTS AND OPPONENTS HAVE
    13     SUBMITTED SUFFICIENT DOCUMENTATION NECESSARY FOR A REVIEW
    14     PURSUANT TO PARAGRAPHS (3) AND (4), THE COUNCIL IS DIRECTED
    15     TO CONTRACT WITH INDIVIDUALS, PURSUANT TO THE SELECTION
    16     PROCEDURES FOR VENDORS SET FORTH IN SECTION 16, WHO WILL
    17     CONSTITUTE A MANDATED BENEFITS REVIEW PANEL TO REVIEW
    18     MANDATED BENEFITS PROPOSALS AND PROVIDE INDEPENDENTLY
    19     CERTIFIED DOCUMENTATION, AS PROVIDED FOR IN THIS SECTION.
    20         (2)  THE PANEL SHALL CONSIST OF FOUR SENIOR RESEARCHERS,
    21     EACH OF WHOM SHALL BE A RECOGNIZED EXPERT:
    22             (I)  ONE IN HEALTH RESEARCH;
    23             (II)  ONE IN BIOSTATISTICS;
    24             (III)  ONE IN ECONOMIC RESEARCH; [AND]
    25             (IV)  ONE, A PHYSICIAN, IN THE APPROPRIATE SPECIALTY
    26         WITH CURRENT KNOWLEDGE OF THE SUBJECT BEING PROPOSED AS A
    27         MANDATED BENEFIT; AND
    28             (V)  ONE WITH EXPERIENCE IN INSURANCE OR ACTUARIAL
    29         RESEARCH.
    30         (3)  THE MANDATED BENEFITS REVIEW PANEL SHALL HAVE THE
    20030S0387B1045                 - 59 -     

     1     FOLLOWING DUTIES AND RESPONSIBILITIES:
     2             (I)  TO REVIEW DOCUMENTATION SUBMITTED BY PERSONS
     3         PROPOSING OR OPPOSING MANDATED BENEFITS WITHIN 90 DAYS OF
     4         SUBMISSION OF SAID DOCUMENTATION TO THE PANEL.
     5             (II)  TO REPORT TO THE COUNCIL, PURSUANT TO ITS
     6         REVIEW IN SUBPARAGRAPH (I), THE FOLLOWING:
     7                 (A)  WHETHER OR NOT THE DOCUMENTATION IS COMPLETE
     8             AS DEFINED IN PARAGRAPH (4).
     9                 (B)  WHETHER OR NOT THE RESEARCH CITED IN THE
    10             DOCUMENTATION MEETS PROFESSIONAL STANDARDS.
    11                 (C)  WHETHER OR NOT ALL RELEVANT RESEARCH
    12             RESPECTING THE PROPOSED MANDATED BENEFIT HAS BEEN
    13             CITED IN THE DOCUMENTATION.
    14                 (D)  WHETHER OR NOT THE CONCLUSIONS AND
    15             INTERPRETATIONS IN THE DOCUMENTATION ARE CONSISTENT
    16             WITH THE DATA SUBMITTED.
    17         (4)  TO PROVIDE THE MANDATED BENEFITS REVIEW PANEL WITH
    18     SUFFICIENT INFORMATION TO CARRY OUT ITS DUTIES AND
    19     RESPONSIBILITIES PURSUANT TO PARAGRAPH (3), PERSONS PROPOSING
    20     OR OPPOSING LEGISLATION MANDATING BENEFITS COVERAGE SHOULD
    21     SUBMIT DOCUMENTATION TO THE COUNCIL, PURSUANT TO THE
    22     PROCEDURE ESTABLISHED IN PARAGRAPH (5), WHICH DEMONSTRATES
    23     THE FOLLOWING:
    24             (I)  THE EXTENT TO WHICH THE PROPOSED BENEFIT AND THE
    25         SERVICES IT WOULD PROVIDE ARE NEEDED BY, AVAILABLE TO AND
    26         UTILIZED BY THE POPULATION OF THE COMMONWEALTH.
    27             (II)  THE EXTENT TO WHICH INSURANCE COVERAGE FOR THE
    28         PROPOSED BENEFIT ALREADY EXISTS, OR IF NO SUCH COVERAGE
    29         EXISTS, THE EXTENT TO WHICH THIS LACK OF COVERAGE RESULTS
    30         IN INADEQUATE HEALTH CARE OR FINANCIAL HARDSHIP FOR THE
    20030S0387B1045                 - 60 -     

     1         POPULATION OF THE COMMONWEALTH.
     2             (III)  THE DEMAND FOR THE PROPOSED BENEFIT FROM THE
     3         PUBLIC AND THE SOURCE AND EXTENT OF OPPOSITION TO
     4         MANDATING THE BENEFIT.
     5             (IV)  ALL RELEVANT FINDINGS BEARING ON THE SOCIAL
     6         IMPACT OF THE LACK OF THE PROPOSED BENEFIT.
     7             (V)  WHERE THE PROPOSED BENEFIT WOULD MANDATE
     8         COVERAGE OF A PARTICULAR THERAPY, THE RESULTS OF AT LEAST
     9         ONE PROFESSIONALLY ACCEPTED, CONTROLLED TRIAL COMPARING
    10         THE MEDICAL CONSEQUENCES OF THE PROPOSED THERAPY,
    11         ALTERNATIVE THERAPIES AND NO THERAPY.
    12             (VI)  WHERE THE PROPOSED BENEFIT WOULD MANDATE
    13         COVERAGE OF AN ADDITIONAL CLASS OF PRACTITIONERS, THE
    14         RESULTS OF AT LEAST ONE PROFESSIONALLY ACCEPTED,
    15         CONTROLLED TRIAL COMPARING THE MEDICAL RESULTS ACHIEVED
    16         BY THE ADDITIONAL CLASS OF PRACTITIONERS AND THOSE
    17         PRACTITIONERS ALREADY COVERED BY BENEFITS.
    18             (VII)  THE RESULTS OF ANY OTHER RELEVANT RESEARCH.
    19             (VIII)  EVIDENCE OF THE FINANCIAL IMPACT OF THE
    20         PROPOSED LEGISLATION, INCLUDING AT LEAST:
    21                 (A)  THE EXTENT TO WHICH THE PROPOSED BENEFIT
    22             WOULD INCREASE OR DECREASE COST FOR TREATMENT OR
    23             SERVICE.
    24                 (B)  THE EXTENT TO WHICH SIMILAR MANDATED
    25             BENEFITS IN OTHER STATES HAVE AFFECTED CHARGES, COSTS
    26             AND PAYMENTS FOR SERVICES.
    27                 (C)  THE EXTENT TO WHICH THE PROPOSED BENEFIT
    28             WOULD INCREASE THE APPROPRIATE USE OF THE TREATMENT
    29             OR SERVICE.
    30                 (D)  THE IMPACT OF THE PROPOSED BENEFIT ON
    20030S0387B1045                 - 61 -     

     1             ADMINISTRATIVE EXPENSES OF HEALTH CARE INSURERS.
     2                 (E)  THE IMPACT OF THE PROPOSED BENEFITS ON
     3             BENEFITS COSTS OF PURCHASERS.
     4                 (F)  THE IMPACT OF THE PROPOSED BENEFITS ON THE
     5             TOTAL COST OF HEALTH CARE WITHIN THE COMMONWEALTH.
     6         (5)  THE PROCEDURE FOR REVIEW OF DOCUMENTATION IS AS
     7     FOLLOWS:
     8             (I)  ANY PERSON WISHING TO SUBMIT INFORMATION ON
     9         PROPOSED LEGISLATION MANDATING INSURANCE BENEFITS FOR
    10         REVIEW BY THE PANEL SHOULD SUBMIT THE DOCUMENTATION
    11         SPECIFIED IN PARAGRAPH (4) TO THE COUNCIL.
    12             (II)  THE COUNCIL SHALL, WITHIN 30 DAYS OF RECEIPT OF
    13         THE DOCUMENTATION:
    14                 (A)  PUBLISH IN THE PENNSYLVANIA BULLETIN NOTICE
    15             OF RECEIPT OF THE DOCUMENTATION, A DESCRIPTION OF THE
    16             PROPOSED LEGISLATION, PROVISION FOR A PERIOD OF 60
    17             DAYS FOR PUBLIC COMMENT AND THE TIME AND PLACE AT
    18             WHICH ANY PERSON MAY EXAMINE THE DOCUMENTATION.
    19                 (B)  SUBMIT COPIES OF THE DOCUMENTATION TO THE
    20             SECRETARY OF HEALTH AND THE INSURANCE COMMISSIONER,
    21             WHO SHALL REVIEW AND SUBMIT COMMENTS TO THE COUNCIL
    22             ON THE PROPOSED LEGISLATION WITHIN 30 DAYS.
    23                 (C)  SUBMIT COPIES OF THE DOCUMENTATION TO THE
    24             PANEL, WHICH SHALL REVIEW THE DOCUMENTATION AND ISSUE
    25             THEIR FINDINGS, PURSUANT TO PARAGRAPH (3), WITHIN 90
    26             DAYS.
    27             (III)  UPON RECEIPT OF THE COMMENTS OF THE SECRETARY
    28         OF HEALTH AND THE INSURANCE COMMISSIONER AND OF THE
    29         FINDINGS OF THE PANEL, PURSUANT TO SUBPARAGRAPH (II), BUT
    30         NO LATER THAN 120 DAYS FOLLOWING THE PUBLICATION REQUIRED
    20030S0387B1045                 - 62 -     

     1         IN SUBPARAGRAPH (II), THE COUNCIL SHALL SUBMIT SAID
     2         COMMENTS AND FINDINGS, TOGETHER WITH ITS RECOMMENDATIONS
     3         RESPECTING THE PROPOSED LEGISLATION, TO THE GOVERNOR, THE
     4         PRESIDENT PRO TEMPORE OF THE SENATE, THE SPEAKER OF THE
     5         HOUSE OF REPRESENTATIVES, THE SECRETARY OF HEALTH, THE
     6         INSURANCE COMMISSIONER AND THE PERSON WHO SUBMITTED THE
     7         INFORMATION PURSUANT TO SUBPARAGRAPH (I).
     8  SECTION 10.  ACCESS TO COUNCIL DATA.                              <--
     9     (A)  PUBLIC ACCESS.--THE INFORMATION AND DATA RECEIVED BY THE
    10  COUNCIL SHALL BE UTILIZED BY THE COUNCIL FOR THE BENEFIT OF THE
    11  PUBLIC AND PUBLIC OFFICIALS. SUBJECT TO THE SPECIFIC LIMITATIONS
    12  SET FORTH IN THIS SECTION, THE COUNCIL SHALL MAKE DETERMINATIONS
    13  ON REQUESTS FOR INFORMATION IN FAVOR OF ACCESS.
    14     (A.1)  OUTREACH PROGRAMS.--THE COUNCIL SHALL DEVELOP AND
    15  IMPLEMENT OUTREACH PROGRAMS DESIGNED TO MAKE ITS INFORMATION
    16  UNDERSTANDABLE AND USABLE TO PURCHASERS, PROVIDERS, OTHER
    17  COMMONWEALTH AGENCIES AND THE GENERAL PUBLIC. THE PROGRAMS SHALL
    18  INCLUDE EFFORTS TO EDUCATE THROUGH PAMPHLETS, BOOKLETS, SEMINARS
    19  AND OTHER APPROPRIATE MEASURES AND TO FACILITATE MAKING MORE
    20  INFORMED HEALTH CARE CHOICES.
    21     (B)  LIMITATIONS ON ACCESS.--UNLESS SPECIFICALLY PROVIDED FOR
    22  IN THIS ACT, NEITHER THE COUNCIL NOR ANY CONTRACTING SYSTEM
    23  VENDOR SHALL RELEASE AND NO DATA SOURCE, PERSON, MEMBER OF THE
    24  PUBLIC OR OTHER USER OF ANY DATA OF THE COUNCIL SHALL GAIN
    25  ACCESS TO:
    26         (1)  ANY RAW DATA OF THE COUNCIL THAT DOES NOT
    27     SIMULTANEOUSLY DISCLOSE PAYMENT, AS WELL AS PROVIDER QUALITY
    28     AND PROVIDER SERVICE EFFECTIVENESS PURSUANT TO SECTIONS
    29     5(D)(4) AND 6(D) OR 7(A)(1)(III).
    30         (2)  ANY RAW DATA OF THE COUNCIL WHICH COULD REASONABLY
    20030S0387B1045                 - 63 -     

     1     BE EXPECTED TO REVEAL THE IDENTITY OF AN INDIVIDUAL PATIENT.
     2         (3)  ANY RAW DATA OF THE COUNCIL WHICH COULD REASONABLY
     3     BE EXPECTED TO REVEAL THE IDENTITY OF ANY PURCHASER, AS
     4     DEFINED IN SECTION 3, OTHER THAN A PURCHASER REQUESTING DATA
     5     ON ITS OWN GROUP OR AN ENTITY ENTITLED TO SAID PURCHASER'S
     6     DATA PURSUANT TO SUBSECTION (F).
     7         (4)  ANY RAW DATA OF THE COUNCIL RELATING TO ACTUAL
     8     PAYMENTS TO ANY IDENTIFIED PROVIDER MADE BY ANY PURCHASER,
     9     EXCEPT THAT THIS PROVISION SHALL NOT APPLY TO ACCESS BY A
    10     PURCHASER REQUESTING DATA ON THE GROUP FOR WHICH IT PURCHASES
    11     OR OTHERWISE PROVIDES COVERED SERVICES OR TO ACCESS TO THAT
    12     SAME DATA BY AN ENTITY ENTITLED TO THE PURCHASER'S DATA
    13     PURSUANT TO SUBSECTION (F).
    14         (5)  ANY RAW DATA DISCLOSING DISCOUNTS OR DIFFERENTIALS
    15     BETWEEN PAYMENTS ACCEPTED BY PROVIDERS FOR SERVICES AND THEIR
    16     BILLED CHARGES OBTAINED BY IDENTIFIED PAYORS FROM IDENTIFIED
    17     PROVIDERS UNLESS [COMPARABLE DATA ON ALL OTHER PAYORS IS ALSO
    18     RELEASED] THE DATA IS RELEASED IN A STATEWIDE, AGGREGATE
    19     FORMAT THAT DOES NOT IDENTIFY ANY INDIVIDUAL PAYOR OR CLASS
    20     OF PAYORS AND THE COUNCIL [DETERMINES] ASSURES THAT THE
    21     RELEASE OF SUCH INFORMATION IS NOT PREJUDICIAL OR INEQUITABLE
    22     TO ANY INDIVIDUAL PAYOR OR PROVIDER OR GROUP THEREOF. [IN
    23     MAKING SUCH DETERMINATION THE COUNCIL SHALL CONSIDER THAT IT
    24     IS PRIMARILY CONCERNED WITH THE ANALYSIS AND DISSEMINATION OF
    25     PAYMENTS TO PROVIDERS, NOT WITH DISCOUNTS.]
    26     * * *                                                          <--
    27     (C)  UNAUTHORIZED USE OF DATA.--ANY PERSON WHO KNOWINGLY       <--
    28  RELEASES COUNCIL DATA VIOLATING THE PATIENT CONFIDENTIALITY,
    29  ACTUAL PAYMENTS, DISCOUNT DATA OR RAW DATA SAFEGUARDS SET FORTH
    30  IN THIS SECTION TO AN UNAUTHORIZED PERSON COMMITS A MISDEMEANOR
    20030S0387B1045                 - 64 -     

     1  OF THE FIRST DEGREE AND SHALL, UPON CONVICTION, BE SENTENCED TO
     2  PAY A FINE OF $10,000 OR TO IMPRISONMENT FOR NOT MORE THAN FIVE
     3  YEARS, OR BOTH. AN UNAUTHORIZED PERSON WHO KNOWINGLY RECEIVES OR
     4  POSSESSES SUCH DATA COMMITS A MISDEMEANOR OF THE FIRST DEGREE.
     5     (D)  UNAUTHORIZED ACCESS TO DATA.--SHOULD ANY PERSON
     6  INADVERTENTLY OR BY COUNCIL ERROR GAIN ACCESS TO DATA THAT
     7  VIOLATES THE SAFEGUARDS SET FORTH IN THIS SECTION, THE DATA MUST
     8  IMMEDIATELY BE RETURNED, WITHOUT DUPLICATION, TO THE COUNCIL
     9  WITH PROPER NOTIFICATION.
    10     (E)  PUBLIC ACCESS TO RECORDS.--ALL PUBLIC REPORTS PREPARED
    11  BY THE COUNCIL SHALL BE PUBLIC RECORDS AND SHALL BE AVAILABLE TO
    12  THE PUBLIC FOR A REASONABLE FEE, AND COPIES SHALL BE PROVIDED,
    13  UPON REQUEST OF THE CHAIR, TO THE PUBLIC HEALTH AND WELFARE
    14  COMMITTEE OF THE SENATE AND THE HEALTH AND WELFARE COMMITTEE OF
    15  THE HOUSE OF REPRESENTATIVES.
    16     (F)  ACCESS TO RAW COUNCIL DATA BY PURCHASERS.--PURSUANT TO
    17  SECTIONS 5(D)(5) AND 7(B) AND SUBJECT TO THE LIMITATIONS ON
    18  ACCESS SET FORTH IN SUBSECTION (B), THE COUNCIL SHALL PROVIDE
    19  ACCESS TO ITS RAW DATA TO PURCHASERS IN ACCORDANCE WITH THE
    20  FOLLOWING PROCEDURE:
    21         (1)  SPECIAL REPORTS DERIVED FROM RAW DATA OF THE COUNCIL
    22     SHALL BE PROVIDED BY THE COUNCIL TO ANY PURCHASER REQUESTING
    23     SUCH REPORTS.
    24         (2)  A MEANS TO ENABLE COMPUTER-TO-COMPUTER ACCESS BY ANY
    25     PURCHASER TO RAW DATA OF THE COUNCIL AS DEFINED IN SECTION 3
    26     SHALL BE DEVELOPED, ADOPTED AND IMPLEMENTED BY THE COUNCIL,
    27     AND THE COUNCIL SHALL PROVIDE SUCH ACCESS TO ITS RAW DATA TO
    28     ANY PURCHASER UPON REQUEST.
    29         (3)  IN THE EVENT THAT ANY EMPLOYER OBTAINS FROM THE
    30     COUNCIL, PURSUANT TO PARAGRAPH (1) OR (2), DATA PERTAINING TO
    20030S0387B1045                 - 65 -     

     1     ITS EMPLOYEES AND THEIR DEPENDENTS FOR WHOM SAID EMPLOYER
     2     PURCHASES OR OTHERWISE PROVIDES COVERED SERVICES AS DEFINED
     3     IN SECTION 3 AND WHO ARE REPRESENTED BY A CERTIFIED
     4     COLLECTIVE BARGAINING REPRESENTATIVE, SAID COLLECTIVE
     5     BARGAINING REPRESENTATIVE SHALL BE ENTITLED TO THAT SAME
     6     DATA, AFTER PAYMENT OF FEES AS SPECIFIED IN PARAGRAPH (4).
     7     LIKEWISE, SHOULD A CERTIFIED COLLECTIVE BARGAINING
     8     REPRESENTATIVE OBTAIN FROM THE COUNCIL, PURSUANT TO PARAGRAPH
     9     (1) OR (2), DATA PERTAINING TO ITS MEMBERS AND THEIR
    10     DEPENDENTS WHO ARE EMPLOYED BY AND FOR WHOM COVERED SERVICES
    11     ARE PURCHASED OR OTHERWISE PROVIDED BY ANY EMPLOYER, SAID
    12     EMPLOYER SHALL BE ENTITLED TO THAT SAME DATA, AFTER PAYMENT
    13     OF FEES AS SPECIFIED IN PARAGRAPH (4).
    14         (4)  IN PROVIDING FOR ACCESS TO ITS RAW DATA, THE COUNCIL
    15     SHALL CHARGE THE PURCHASERS WHICH ORIGINALLY OBTAINED SUCH
    16     ACCESS A FEE SUFFICIENT TO COVER ITS COSTS TO PREPARE AND
    17     PROVIDE SPECIAL REPORTS REQUESTED PURSUANT TO PARAGRAPH (1)
    18     OR TO PROVIDE COMPUTER-TO-COMPUTER ACCESS TO ITS RAW DATA
    19     REQUESTED PURSUANT TO PARAGRAPH (2). SHOULD A SECOND OR
    20     SUBSEQUENT PARTY OR PARTIES REQUEST THIS SAME INFORMATION
    21     PURSUANT TO PARAGRAPH (3), THE COUNCIL SHALL CHARGE SAID
    22     PARTY A REASONABLE FEE.
    23     (G)  ACCESS TO RAW COUNCIL DATA BY OTHER PARTIES.--SUBJECT TO
    24  THE LIMITATIONS ON ACCESS TO RAW COUNCIL DATA SET FORTH IN
    25  SUBSECTION (B), THE COUNCIL MAY, AT ITS DISCRETION, PROVIDE
    26  SPECIAL REPORTS DERIVED FROM ITS RAW DATA OR COMPUTER-TO-
    27  COMPUTER ACCESS TO PARTIES OTHER THAN PURCHASERS. THE COUNCIL
    28  SHALL PUBLISH REGULATIONS THAT SET FORTH THE CRITERIA AND THE
    29  PROCEDURE IT SHALL USE IN MAKING DETERMINATIONS ON SUCH ACCESS,
    30  PURSUANT TO THE POWERS VESTED IN THE COUNCIL IN SECTION 4. IN
    20030S0387B1045                 - 66 -     

     1  PROVIDING SUCH ACCESS, THE COUNCIL SHALL CHARGE THE PARTY
     2  REQUESTING THE ACCESS A REASONABLE FEE.
     3     SECTION 5.  SECTION 11 OF THE ACT IS REENACTED TO READ:
     4  SECTION 11.  SPECIAL STUDIES AND REPORTS.
     5     (A)  SPECIAL STUDIES.--ANY COMMONWEALTH AGENCY MAY PUBLISH OR
     6  CONTRACT FOR PUBLICATION OF SPECIAL STUDIES. ANY SPECIAL STUDY
     7  SO PUBLISHED SHALL BECOME A PUBLIC DOCUMENT.
     8     (B)  SPECIAL REPORTS.--
     9         (1)  ANY COMMONWEALTH AGENCY MAY STUDY AND ISSUE A REPORT
    10     ON THE SPECIAL MEDICAL NEEDS, DEMOGRAPHIC CHARACTERISTICS,
    11     ACCESS OR LACK THEREOF TO HEALTH CARE SERVICES AND NEED FOR
    12     FINANCING OF HEALTH CARE SERVICES OF:
    13             (I)  SENIOR CITIZENS, PARTICULARLY LOW-INCOME SENIOR
    14         CITIZENS, SENIOR CITIZENS WHO ARE MEMBERS OF MINORITY
    15         GROUPS AND SENIOR CITIZENS RESIDING IN LOW-INCOME URBAN
    16         OR RURAL AREAS.
    17             (II)  LOW-INCOME URBAN OR RURAL AREAS.
    18             (III)  MINORITY COMMUNITIES.
    19             (IV)  WOMEN.
    20             (V)  CHILDREN.
    21             (VI)  UNEMPLOYED WORKERS.
    22             (VII)  VETERANS.
    23     THE REPORTS SHALL INCLUDE INFORMATION ON THE CURRENT
    24     AVAILABILITY OF SERVICES TO THESE TARGETED PARTS OF THE
    25     POPULATION, AND WHETHER ACCESS TO SUCH SERVICES HAS INCREASED
    26     OR DECREASED OVER THE PAST TEN YEARS, AND SPECIFIC
    27     RECOMMENDATIONS FOR THE IMPROVEMENT OF THEIR PRIMARY CARE AND
    28     HEALTH DELIVERY SYSTEMS, INCLUDING DISEASE PREVENTION AND
    29     COMPREHENSIVE HEALTH CARE SERVICES. THE DEPARTMENT MAY ALSO
    30     STUDY AND REPORT ON THE EFFECTS OF USING PREPAID, CAPITATED
    20030S0387B1045                 - 67 -     

     1     OR HMO HEALTH DELIVERY SYSTEMS AS WAYS TO PROMOTE THE
     2     DELIVERY OF PRIMARY HEALTH CARE SERVICES TO THE UNDERSERVED
     3     SEGMENTS OF THE POPULATION ENUMERATED ABOVE.
     4         (2)  THE DEPARTMENT MAY STUDY AND REPORT ON THE SHORT-
     5     TERM AND LONG-TERM FISCAL AND PROGRAMMATIC IMPACT ON THE
     6     HEALTH CARE CONSUMER OF CHANGES IN OWNERSHIP OF HOSPITALS
     7     FROM NONPROFIT TO PROFIT, WHETHER THROUGH PURCHASE, MERGER OR
     8     THE LIKE. THE DEPARTMENT MAY ALSO STUDY AND REPORT ON FACTORS
     9     WHICH HAVE THE EFFECT OF EITHER REDUCING PROVIDER REVENUE OR
    10     INCREASING PROVIDER COST, AND OTHER FACTORS BEYOND A
    11     PROVIDER'S CONTROL WHICH REDUCE PROVIDER COMPETITIVENESS IN
    12     THE MARKETPLACE, ARE EXPLAINED IN THE REPORTS.
    13     SECTION 6.  SECTION 12 OF THE ACT IS REENACTED AND AMENDED TO
    14  READ:
    15  SECTION 12.  ENFORCEMENT; PENALTY.
    16     * * *                                                          <--
    17     (A)  COMPLIANCE ENFORCEMENT.--THE COUNCIL SHALL HAVE STANDING
    18  TO BRING AN ACTION IN LAW OR IN EQUITY THROUGH PRIVATE COUNSEL
    19  IN ANY COURT OF COMMON PLEAS TO ENFORCE COMPLIANCE WITH ANY
    20  PROVISION OF THIS ACT, EXCEPT SECTION 11, OR ANY REQUIREMENT OR
    21  APPROPRIATE REQUEST OF THE COUNCIL MADE PURSUANT TO THIS ACT. IN
    22  ADDITION, THE ATTORNEY GENERAL IS AUTHORIZED AND SHALL BRING ANY
    23  SUCH ENFORCEMENT ACTION IN AID OF THE COUNCIL IN ANY COURT OF
    24  COMMON PLEAS AT THE REQUEST OF THE COUNCIL IN THE NAME OF THE
    25  COMMONWEALTH.
    26     (B)  PENALTY.--
    27         (1)  ANY PERSON WHO FAILS TO SUPPLY DATA PURSUANT TO
    28     SECTION 6 [COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND
    29     SHALL, UPON CONVICTION, BE SENTENCED TO PAY A FINE NOT TO
    30     EXCEED $1,000. EACH DAY ON WHICH THE REQUIRED DATA IS NOT
    20030S0387B1045                 - 68 -     

     1     SUBMITTED CONSTITUTES A SEPARATE OFFENSE UNDER THIS
     2     PARAGRAPH.] MAY SHALL BE ASSESSED A CIVIL PENALTY NOT TO       <--
     3     EXCEED $1,000 FOR EACH DAY THE DATA IS NOT SUBMITTED.
     4         (2)  [ANY PERSON WHO, AFTER BEING SENTENCED UNDER
     5     PARAGRAPH (1), FAILS TO SUPPLY DATA PURSUANT TO SECTION 6
     6     COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND SHALL, UPON
     7     CONVICTION, BE SENTENCED TO PAY A FINE OF $10,000 OR TO
     8     IMPRISONMENT FOR NOT MORE THAN FIVE YEARS, OR BOTH.] ANY
     9     PERSON WHO KNOWINGLY SUBMITS INACCURATE DATA UNDER SECTION 6   <--
    10     COMMITS A MISDEMEANOR OF THE THIRD DEGREE AND SHALL, UPON
    11     CONVICTION, BE SENTENCED TO PAY A FINE OF $10,000 $1,000 OR    <--
    12     TO IMPRISONMENT FOR NOT MORE THAN FIVE YEARS ONE YEAR, OR      <--
    13     BOTH.
    14     SECTION 7.  SECTIONS 13, 14, 15, 16, 17.1 AND 18 OF THE ACT    <--
    15  ARE REENACTED TO READ:
    16  SECTION 13.  RESEARCH AND DEMONSTRATION PROJECTS.
    17     THE COUNCIL SHALL ACTIVELY ENCOURAGE RESEARCH AND
    18  DEMONSTRATIONS TO DESIGN AND TEST IMPROVED METHODS OF ASSESSING
    19  PROVIDER QUALITY, PROVIDER SERVICE EFFECTIVENESS AND EFFICIENCY.
    20  TO THAT END, PROVIDED THAT NO DATA SUBMISSION REQUIREMENTS IN A
    21  MANDATED DEMONSTRATION MAY EXCEED THE CURRENT RESERVE FIELD ON
    22  THE PENNSYLVANIA UNIFORM CLAIMS AND BILLING FORM, THE COUNCIL
    23  MAY:
    24         (1)  AUTHORIZE CONTRACTORS ENGAGED IN HEALTH SERVICES
    25     RESEARCH SELECTED BY THE COUNCIL, PURSUANT TO THE PROVISIONS
    26     OF SECTION 16, TO HAVE ACCESS TO THE COUNCIL'S RAW DATA
    27     FILES, PROVIDING SUCH ENTITIES ASSUME ANY CONTRACTUAL
    28     OBLIGATIONS IMPOSED BY THE COUNCIL TO ASSURE PATIENT IDENTITY
    29     CONFIDENTIALITY.
    30         (2)  PLACE DATA SOURCES PARTICIPATING IN RESEARCH AND
    20030S0387B1045                 - 69 -     

     1     DEMONSTRATIONS ON DIFFERENT DATA SUBMISSION REQUIREMENTS FROM
     2     OTHER DATA SOURCES IN THIS COMMONWEALTH.
     3         (3)  REQUIRE DATA SOURCE PARTICIPATION IN RESEARCH AND
     4     DEMONSTRATION PROJECTS WHEN THIS IS THE ONLY TESTING METHOD
     5     THE COUNCIL DETERMINES IS PROMISING.
     6  SECTION 14.  GRIEVANCES AND GRIEVANCE PROCEDURES.
     7     (A)  PROCEDURES AND REQUIREMENTS.--PURSUANT TO ITS POWERS TO
     8  PUBLISH REGULATIONS UNDER SECTION 5(B) AND WITH THE REQUIREMENTS
     9  OF THIS SECTION, THE COUNCIL IS HEREBY AUTHORIZED AND DIRECTED
    10  TO ESTABLISH PROCEDURES AND REQUIREMENTS FOR THE FILING, HEARING
    11  AND ADJUDICATION OF GRIEVANCES AGAINST THE COUNCIL OF ANY DATA
    12  SOURCE. SUCH PROCEDURES AND REQUIREMENTS SHALL BE PUBLISHED IN
    13  THE PENNSYLVANIA BULLETIN PURSUANT TO LAW.
    14     (B)  CLAIMS; HEARINGS.--GRIEVANCE CLAIMS OF ANY DATA SOURCE
    15  SHALL BE SUBMITTED TO THE COUNCIL OR TO A THIRD PARTY DESIGNATED
    16  BY THE COUNCIL, AND THE COUNCIL OR THE DESIGNATED THIRD PARTY
    17  SHALL CONVENE A HEARING, IF REQUESTED, AND ADJUDICATE THE
    18  GRIEVANCE.
    19  SECTION 15.  ANTITRUST PROVISIONS.
    20     PERSONS OR ENTITIES REQUIRED TO SUBMIT DATA OR INFORMATION
    21  UNDER THIS ACT OR RECEIVING DATA OR INFORMATION FROM THE COUNCIL
    22  IN ACCORDANCE WITH THIS ACT ARE DECLARED TO BE ACTING PURSUANT
    23  TO STATE REQUIREMENTS EMBODIED IN THIS ACT AND SHALL BE EXEMPT
    24  FROM ANTITRUST CLAIMS OR ACTIONS GROUNDED UPON SUBMISSION OR
    25  RECEIPT OF SUCH DATA OR INFORMATION.
    26  SECTION 16.  CONTRACTS WITH VENDORS.
    27     ANY CONTRACT WITH ANY VENDOR OTHER THAN A SOLE SOURCE VENDOR
    28  FOR PURCHASE OF SERVICES OR FOR PURCHASE OR LEASE OF SUPPLIES
    29  AND EQUIPMENT RELATED TO THE COUNCIL'S POWERS AND DUTIES SHALL
    30  BE LET ONLY AFTER A PUBLIC BIDDING PROCESS AND ONLY IN
    20030S0387B1045                 - 70 -     

     1  ACCORDANCE WITH THE FOLLOWING PROVISIONS, AND NO CONTRACT SHALL
     2  BE LET BY THE COUNCIL THAT DOES NOT CONFORM TO THESE PROVISIONS:
     3         (1)  THE COUNCIL SHALL PREPARE SPECIFICATIONS FULLY
     4     DESCRIBING THE SERVICES TO BE RENDERED OR EQUIPMENT OR
     5     SUPPLIES TO BE PROVIDED BY A VENDOR AND SHALL MAKE THESE
     6     SPECIFICATIONS AVAILABLE FOR INSPECTION BY ANY PERSON AT THE
     7     COUNCIL'S OFFICES DURING NORMAL WORKING HOURS AND AT SUCH
     8     OTHER PLACES AND SUCH OTHER TIMES AS THE COUNCIL DEEMS
     9     ADVISABLE.
    10         (2)  THE COUNCIL SHALL PUBLISH NOTICE OF INVITATIONS TO
    11     BID IN THE PENNSYLVANIA BULLETIN. THE COUNCIL SHALL ALSO
    12     PUBLISH SUCH NOTICE IN AT LEAST FOUR NEWSPAPERS IN GENERAL
    13     CIRCULATION IN THE COMMONWEALTH ON AT LEAST THREE OCCASIONS
    14     AT INTERVALS OF NOT LESS THAN THREE DAYS. SAID NOTICE SHALL
    15     INCLUDE AT LEAST THE FOLLOWING:
    16             (I)  THE DEADLINE FOR SUBMISSION OF BIDS BY
    17         PROSPECTIVE VENDORS, WHICH SHALL BE NO SOONER THAN 30
    18         DAYS FOLLOWING THE LATEST PUBLICATION OF THE NOTICE AS
    19         PRESCRIBED IN THIS PARAGRAPH.
    20             (II)  THE LOCATIONS, DATES AND TIMES DURING WHICH
    21         PROSPECTIVE VENDORS CAN EXAMINE THE SPECIFICATIONS
    22         REQUIRED IN PARAGRAPH (1).
    23             (III)  THE DATE, TIME AND PLACE OF THE MEETING OR
    24         MEETINGS OF THE COUNCIL AT WHICH BIDS WILL BE OPENED AND
    25         ACCEPTED.
    26             (IV)  A STATEMENT TO THE EFFECT THAT ANY PERSON IS
    27         ELIGIBLE TO BID.
    28         (3)  BIDS SHALL BE ACCEPTED AS FOLLOWS:
    29             (I)  NO COUNCIL MEMBER WHO IS AFFILIATED IN ANY WAY
    30         WITH ANY BIDDER SHALL VOTE ON THE AWARDING OF ANY
    20030S0387B1045                 - 71 -     

     1         CONTRACT FOR WHICH SAID BIDDER HAS SUBMITTED A BID, AND
     2         ANY COUNCIL MEMBER WHO HAS AN AFFILIATION WITH A BIDDER
     3         SHALL STATE THE NATURE OF THE AFFILIATION PRIOR TO ANY
     4         VOTE OF THE COUNCIL.
     5             (II)  BIDS SHALL BE OPENED AND REVIEWED BY THE
     6         APPROPRIATE COUNCIL COMMITTEE, WHICH SHALL MAKE
     7         RECOMMENDATIONS TO THE COUNCIL ON APPROVAL. BIDS SHALL BE
     8         ACCEPTED AND SUCH ACCEPTANCE SHALL BE ANNOUNCED ONLY AT A
     9         PUBLIC MEETING OF THE COUNCIL AS DEFINED IN SECTION 4(E),
    10         AND NO BIDS SHALL BE ACCEPTED AT AN EXECUTIVE SESSION OF
    11         THE COUNCIL.
    12             (III)  THE COUNCIL MAY REQUIRE THAT A CERTIFIED
    13         CHECK, IN AN AMOUNT DETERMINED BY THE COUNCIL, ACCOMPANY
    14         EVERY BID, AND, WHEN SO REQUIRED, NO BID SHALL BE
    15         ACCEPTED UNLESS SO ACCOMPANIED.
    16         (4)  IN ORDER TO PREVENT ANY PARTY FROM DELIBERATELY
    17     UNDERBIDDING CONTRACTS IN ORDER TO GAIN OR PREVENT ACCESS TO
    18     COUNCIL DATA, THE COUNCIL MAY AWARD ANY CONTRACT AT ITS
    19     DISCRETION, REGARDLESS OF THE AMOUNT OF THE BID, PURSUANT TO
    20     THE FOLLOWING:
    21             (I)  ANY BID ACCEPTED MUST REASONABLY REFLECT THE
    22         ACTUAL COST OF SERVICES PROVIDED.
    23             (II)  ANY VENDOR SO SELECTED BY THE COUNCIL SHALL BE
    24         FOUND BY THE COUNCIL TO BE OF SUCH CHARACTER AND SUCH
    25         INTEGRITY AS TO ASSURE, TO THE MAXIMUM EXTENT POSSIBLE,
    26         ADHERENCE TO ALL THE PROVISIONS OF THIS ACT IN THE
    27         PROVISION OF CONTRACTED SERVICES.
    28             (III)  THE COUNCIL MAY REQUIRE THE SELECTED VENDOR TO
    29         FURNISH, WITHIN 20 DAYS AFTER THE CONTRACT HAS BEEN
    30         AWARDED, A BOND WITH SUITABLE AND REASONABLE REQUIREMENTS
    20030S0387B1045                 - 72 -     

     1         GUARANTEEING THE SERVICES TO BE PERFORMED WITH SUFFICIENT
     2         SURETY IN AN AMOUNT DETERMINED BY THE COUNCIL, AND UPON
     3         FAILURE TO FURNISH SUCH BOND WITHIN THE TIME SPECIFIED,
     4         THE PREVIOUS AWARD SHALL BE VOID.
     5         (5)  THE COUNCIL SHALL MAKE EFFORTS TO ASSURE THAT ITS
     6     VENDORS HAVE ESTABLISHED AFFIRMATIVE ACTION PLANS TO ASSURE
     7     EQUAL OPPORTUNITY POLICIES FOR HIRING AND PROMOTING
     8     EMPLOYEES.
     9  SECTION 17.1.  REPORTING.
    10     THE COUNCIL SHALL PROVIDE AN ANNUAL REPORT OF ITS FINANCIAL
    11  EXPENDITURES TO THE APPROPRIATIONS COMMITTEE OF THE SENATE AND
    12  THE APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.
    13  SECTION 18.  SEVERABILITY.
    14     THE PROVISIONS OF THIS ACT ARE SEVERABLE. IF ANY PROVISION OF
    15  THIS ACT OR ITS APPLICATION TO ANY PERSON OR CIRCUMSTANCE IS
    16  HELD INVALID, THE INVALIDITY SHALL NOT AFFECT OTHER PROVISIONS
    17  OR APPLICATIONS OF THIS ACT WHICH CAN BE GIVEN EFFECT WITHOUT
    18  THE INVALID PROVISION OR APPLICATION.
    19     SECTION 8.  SECTION 19 OF THE ACT IS REENACTED AND AMENDED TO
    20  READ:
    21  SECTION 19.  SUNSET.
    22     THIS ACT SHALL EXPIRE JUNE 30, [2003] 2009 2008, UNLESS        <--
    23  REENACTED PRIOR TO [THAT DATE.] SEPTEMBER 1, 2008 2007. BY MARCH  <--
    24  1, 2008 2007, A WRITTEN REPORT BY THE LEGISLATIVE BUDGET AND      <--
    25  FINANCE COMMITTEE EVALUATING THE MANAGEMENT, VISIBILITY,
    26  AWARENESS AND PERFORMANCE OF THE COUNCIL SHALL BE PROVIDED TO
    27  THE PUBLIC HEALTH AND WELFARE COMMITTEE OF THE SENATE AND THE
    28  HEALTH AND HUMAN SERVICES COMMITTEE OF THE HOUSE OF
    29  REPRESENTATIVES. THE REPORT SHALL INCLUDE A REVIEW OF THE
    30  COUNCIL'S PROCEDURES AND POLICIES, THE AVAILABILITY AND QUALITY
    20030S0387B1045                 - 73 -     

     1  OF DATA FOR COMPLETING REPORTS TO HOSPITALS AND OUTSIDE VENDOR
     2  PURCHASERS; THE ABILITY OF THE COUNCIL TO BECOME SELF-SUFFICIENT
     3  BY SELLING DATA TO OUTSIDE PURCHASERS; WHETHER THERE IS A MORE
     4  COST-EFFICIENT WAY OF ACCOMPLISHING THE OBJECTIVES OF THE
     5  COUNCIL AND THE NEED FOR REAUTHORIZATION OF THE COUNCIL.
     6     SECTION 4.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.            <--
     7     SECTION 9.  SECTION 20 OF THE ACT IS REENACTED TO READ:        <--
     8  SECTION 20.  EFFECTIVE DATE.
     9     THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
    10     SECTION 10.  THIS ACT SHALL APPLY RETROACTIVELY TO JUNE 29,
    11  2003.
    12     SECTION 11.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.












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