THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY CUTLER, BOYD, CLYMER, DENLINGER, FLECK, GEIST, HENNESSEY, LONGIETTI, MURT, PICKETT, PYLE, QUINN, SCHRODER AND VULAKOVICH, MARCH 15, 2011

REFERRED TO COMMITTEE ON HEALTH, MARCH 15, 2011  

AN ACT

Establishing the Medical Safety Automation Program; and

providing grants to implement medical safety automation

systems.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

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

Safety Automation Act.

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meaning given to them in this section unless the

context clearly indicates otherwise:

"Applicant."  A person who applied under section 4 for a

grant.

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

care center which provides primary health care services directly

to patients. The term shall include all of the following:

(1)  A federally qualified health center as defined in

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

620, 42 U.S.C. § 1396d(1)(2)(B)).

(2)    A rural health clinic as defined in section 1861

(aa)(2) of the Social Security Act (49 Stat. 620, 42 U.S.C.

§1395x(aa)(2)), certified by Medicare.

(3)  A health clinic associated with, but not located in,

a health care provider licensed as a hospital which serves a

federally designated health care professional shortage area.

(4)  A health clinic which provides free or partially

free health care services to patients when the health care

services are provided by volunteer health care providers.

"Department."  The Department of Health of the Commonwealth.

"Health care provider."  A person who is all of the

following:

(1)  Is one of the following:

(i)    A health care facility as defined in the act of

July 19, 1979 (P.L.130, No.48), known as the Health Care

Facilities Act.

(ii)  A health care practitioner as defined in the

act of July 19, 1979 (P.L.130, No.48), known as the

Health Care Facilities Act.

(iii)  A community-based health care provider.

(2)  Provides medically necessary services to individuals

regardless of the individual's ability to pay for the health

care services.

(3)  Is a participating provider with the Department of

Public Welfare under the act of June 13, 1967 (P.L.31,

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

"Health information."  The medical records of a patient.

"Health insurer."  Any of the following:

(1)  An entity licensed to provide health insurance under

the act of May 17, 1921 (P.L.682. No.284), known as The

Insurance Company Law of 1921.

(2)  A health maintenance organization as defined in the

act of December 29, 1972 (P.L.1701, No.364), known as the

Health Maintenance Organization Act.

(3)  A hospital plan corporation or a professional health

service corporation operating under 40 Pa.C.S. Ch. 61

(relating to hospital plan corporations) or 63 (relating to

professional health services plan corporations).

"Interoperable."  The ability to communicate and

electronically exchange data among different electronic and

telecommunication systems, software applications and networks in

a way that preserves the integrity and clinical uses of the

data.

"Medical safety automation system."  An automated,

interoperable system that uses electronic and telecommunication

technology to integrate health information, health care services

and health care providers. The term includes pharmaceutical

ordering, laboratory testing and results, medical orders,

telemedicine, accessibility limitations and data sharing among

health care providers, health insurers and other appropriate

entities.

"Program."  The medical safety automation program.

"Project."  Any of the following:

(1)  The creation of an interoperable and integrated

medical safety automation system.

(2)  The preparation of plans, specifications, studies

and surveys necessary to determine the scope of a medical

safety automation system and the practicality and

effectiveness of its use.

(3)  Training of physicians and personnel in the use of a

medical safety automation system.

"Project costs."  The costs associated with the project. The

term includes hardware, software and training costs.

"Recipient."  An applicant who receives a grant under section

5.

"Regional health safety organization."  A not-for-profit

entity that adopts charter documents establishing a governmental

structure, which is composed of multiple health care providers

in a geographic region and which the purpose of the entity is to

develop and implement a medical safety automation program for

use by the health care providers composing the entity.

"Standards."  Guidelines regarding the interoperable

integrated medical safety automation systems adopted by the

Office of the National Coordinator for Health Information

Technology and approved by the United States Secretary of Health

and Human Services.

Section 3.  Medical Safety Automation Program.

There is established within the department a program to be

known as the Medical Safety Automation Program. The program

shall provide financial assistance in the form of grants for

projects related to the implementation of medical safety

automation systems. The department shall submit an application

as required by section 3013 of the Public Health Service Act (58

Stat. 682, 42 U.S.C. § 300jj-33).

Section 4.  Applications for grants.

A health care provider or a regional health safety

organization may submit an application to the department

requesting a grant for project costs. The application shall be

on the form required by the department and shall include or

demonstrate all of the following:

(1)  The applicant's name and address.

(2)  The location of the project.

(3)  A description of the project which includes a

statement describing the manner in which the project will do

all of the following:

(i)  Protect privacy and security of health

information.

(ii)  Provide a patient direct access to the

patient's health information.

(iii)  Promote prevention of chronic diseases.

(iv)  Maintain and provide permitted access to health

information in an electronic format.

(v)  Improve health care quality through the

reduction of medical errors and inappropriate care.

(vi)  Improve the coordination of care and health

information among health care providers, health insurers

and other appropriate entities.

(vii)  Improve public health reporting to permit

rapid response to public health threats and emergencies.

(viii)  Facilitate health research.

(4)  A statement as to whether the project complies with

standards and whether the system will be interoperable with

other medical safety automation systems.

(5)  A copy of a feasibility study of the proposed

medical safety automation system. The study shall include a

business or financial plan that describes the sustainability

of costs and the benefits of the project to the applicant and

a timeline for the development and implementation of the

project.

(6)  An estimate of the total cost of the project.

(7)  A statement of the amount of grant sought.

(8)  Any other information required by the department.

Section 5.  Approval of project.

Upon being satisfied that all requirements have been met, the

department may approve the application and, if approved, the

department shall award a grant to be used for project costs.

Preference shall be given to applications for projects which

support the development and implementation of regional medical

safety automation systems and which provide direct patient

access to health information. In considering applications from

health care providers that are hospitals, preference shall be

given to applicants that demonstrate the greatest financial need

and which average the highest number of medical assistance days

as a percentage of total inpatient days.

Section 6.  Limitations.

(1)    A grant awarded under section 5 shall not exceed

$1,000,000 in the aggregate to any single applicant.

(2)    Except as provided under paragraph (3), a grant

awarded under section 5 shall not exceed 50% of the total

project costs.

(3)  If the applicant is a community-based health care

provider, a grant awarded under section 5 shall not exceed

75% of the total project costs.

(4)  No less than 60% of the funds made available for the

program may be awarded to applicants in counties of the

fourth, fifth, sixth, seventh or eighth class.

(5)  A grant awarded under the program may not exceed a

term of two years.

(6)  Grants shall be awarded so that the aggregate amount

of grants awarded to applicants within any one county in any

fiscal year does not exceed 15% of the aggregate amount of

grants awarded in that fiscal year.

Section 7.  Reporting.

Within one year of receipt of a grant under section 5, a

recipient shall provide all of the following to the department:

(1)  The status of the development and implementation of

the medical safety automation system.

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

to fund the project.

(3)  A report on any reduction in medical errors and

increased efficiency in the delivery of health care to

patients.

(4)  Any other information requested by the department.

Section 8.  Duties of the department.

The department shall do all of the following:

(1)  Administer the program.

(2)  Facilitate the development and implementation of

medical safety automation systems in this Commonwealth. The

department shall coordinate with the Department of Public

Welfare to assist in the development and implementation of

medical safety automation systems for health care programs

administered by the Commonwealth.

(3)  Coordinate and share data with the Department of

Public Welfare, the Health Care Cost Containment Council, the

Patient Safety Authority and other State agencies.

(4)  Provide education to health care providers regarding

the advantages of the use of medical safety automation

systems.

(5)  Report annually to the chairman and minority

chairman of the Public Health and Welfare Committee of the

Senate and the chairman and minority chairman of the Health

and Human Services Committee of the House of Representatives.

The report shall include the number of grants awarded, the

location of each grant awarded, a description of each project

funded and the expected impact of each project on the

delivery of health care.

Section 20.  Appropriation.

The sum of $25,000,000 of Federal funds received under

section 3013 of the Public Health Service Act (58 Stat. 682, 42

U.S.C. § 300jj-33) is hereby appropriated from the General Fund

to the Department of Health for the Medical Safety Automation

Program.

Section 21.  Effective date.

This act shall take effect July 1, 2011, or immediately,

whichever is later.