BILL ANALYSIS Ó ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 655| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ THIRD READING Bill No: AB 655 Author: Hayashi (D) Amended: 7/6/11 in Senate Vote: 21 SENATE BUSINESS, PROF & ECON DEVELOP COMM : 9-0, 06/13/11 AYES: Price, Emmerson, Corbett, Correa, Hernandez, Negrete McLeod, Vargas, Walters, Wyland SENATE JUDICIARY COMMITTEE : 4-0, 06/28/11 AYES: Evans, Blakeslee, Corbett, Leno NO VOTE RECORDED: Harman ASSEMBLY FLOOR : 70-0, 05/12/11 - See last page for vote SUBJECT : Healing arts: peer review SOURCE : California Medical Association DIGEST : This bill requires a peer review body to produce relevant peer review information about a physician and surgeon that was subject to peer review for a medical disciplinary cause or reason. Senate Floor Amendments of 7/6/11 require that all relevant peer review information produced pursuant to this bill be made available to a licentiate by the requesting peer review body in accordance with specified hearing requirements. CONTINUED AB 655 Page 2 ANALYSIS : Existing law: 1.Establishes the Medical Board of California (MBC) to license, regulate and discipline physicians and surgeons in California and states that the protection of the public is the highest priority of the MBC in exercising its functions. 2.Provides for the professional review of specified healing arts licentiates by a peer review body, as defined. 3.Defines a licentiate, for purposes of item #2 above, as a physician and surgeon, doctor of podiatric medicine, clinical psychologist, marriage and family therapist, clinical social worker, or dentist. 4.Requires an 805 report to be filed by the chief of staff, chief executive officer, medical director, or administrator of any peer review body and the chief executive officer or administrator of a health facility or clinic, as defined, with the relevant agency having regulatory jurisdiction over a licentiate under the following: A. Within 15 days after the effective date of any of the following that occur as a result of an action of a peer review body: A licentiate's application for staff privileges or membership is denied or rejected for a medical disciplinary cause or reason. A licentiate's membership, staff privileges, or employment is terminated or revoked for a medical disciplinary cause or reason. Restrictions are imposed, or voluntarily accepted, on staff privileges, membership, or employment for a cumulative total of 30 days or more for any 12-month period, for a medical disciplinary cause or reason. A. Within 15 days if a licentiate does any of the following based on information indicating medical CONTINUED AB 655 Page 3 disciplinary cause or reason: Resigns or takes a leave of absence from membership, staff, or employment. Withdraws or abandons an application for staff privileges or membership. Withdraws or abandons the request for renewal of privileges or membership. 1. Requires also for an 805 report to be filed within 15 days after the imposition of a summary suspension of staff privileges, membership, or employment, if the summary suspension remains in effect for over 14 days. 2. Requires a copy of the 805 report, and a notice advising the licentiate of his or her right to submit additional statements or other information, as specified, to be sent by the peer review body to the licentiate named in the report. 3. Indicates that the reporting required under Section 805 does not act as a waiver of confidentiality of medical records and committee reports. Requires that the information reported or disclosed be kept confidential, as specified. 4. Requires, prior to granting or renewing staff privileges for any physician and surgeon, psychologist, podiatrist or dentist, any licensed health care facility, health care service plan or medical care foundation, or the medical staff of an institution, to request a report from the MBC, the Board of Psychology, the Osteopathic Medical Board of California, or the Dental Board of California to determine if any 805 report has been made, indicating that the applying physician and surgeon, psychologist, podiatrist or dentist has been denied staff privileges, been removed from medical staff, or had his or her staff privileges restricted as provided in Section 805. Prohibits providing any report in the following circumstances: 5. If the denial, removal, or restriction was imposed CONTINUED AB 655 Page 4 solely because of the failure to complete medical records. 6. If the MBC found the information reported is without merit. 7. If a period of three years has elapsed since the report was submitted. 8. Provides that peer review action may only be taken against the licentiate by the peer review body if certain procedures and rules are followed including written notice to the licentiate of the proposed action, an opportunity for a hearing with full procedural rights, including discovery, examination of witnesses, formal record of the proceedings and written findings. This bill: 1.Finds and declares that the sharing of information between peer review bodies is essential to protect the public health. 2.Requires a peer review body, upon receipt of reasonable processing costs, to respond to the request of another peer review body and produce relevant peer review information about a licentiate that was subject to peer review by the responding peer review body for a medical disciplinary cause or reason. Requires that all relevant peer review information produced pursuant to this bill be made available to a licentiate by the requesting peer review body in accordance with specified hearing requirements. 3.Requires the responding peer review body to determine the manner by which to produce the information specified in #2 above and may elect to do so through: 1) a written summary of relevant peer review information, or 2) a relevant peer review record. 4.Provides that relevant peer review information or peer review record includes, but is not limited to, CONTINUED AB 655 Page 5 allegations and findings, explanatory or exculpatory information submitted by a licentiate, any conclusions made, or actions taken, and the reasons for those actions, to the extent not prohibited by state or federal law. Prohibits the information from identifying any other person, except the licentiate. 5.Indicates that the information produced by a peer review body shall be used solely for peer review purposes and shall not be subject to discovery, as specified. 6.States that the responding peer review body acting in good faith is not subject to civil or criminal liability for providing information to the requesting peer review body pursuant to this bill. 7.Entitles the peer review body responding to the request to all confidentiality protections and privileges provided by law as to the information disclosed. 8.Requires the following prior to the release of any information pursuant to this bill: A. The requesting peer review body shall, upon request, sign a mutually agreeable peer review sharing agreement with the responding peer review body. Requires the requesting peer review body to indemnify the responding peer review body for any and all claims, demands, liabilities, losses, damages, costs, and expenses, including reasonable attorney's fees, resulting in any manner, directly or indirectly, from the receiving peer review body's improper release or disclosure of information that is shared. B. The licentiate under review by the peer review body requesting information pursuant to this section shall, upon request, release the responding peer review body, its members, and the health care entity for which the responding peer review body conducts peer reviews, from liability for the disclosure of information. 1.Provides that the responding peer review body is not obligated to produce the relevant peer review information unless both of the following conditions are met: CONTINUED AB 655 Page 6 A. The licentiate provides a release, as specified in #8 above that is acceptable to the responding peer review body. B. The requesting peer review body signs a mutually agreeable peer review sharing agreement, as specified in #8 above with the responding peer review body. Background In peer review, physicians evaluate their colleagues' practice to determine compliance with the standard of care. Peer reviews are intended to detect incompetent or unprofessional physicians early and terminate, suspend, or limit their practice if necessary. Peer review is triggered by a wide variety of events including patient injury, disruptive conduct, substance abuse, or other medical staff complaints. A peer review committee investigates the allegation, comes to a decision regarding the physician's conduct, and takes appropriate remedial actions. However, there is reluctance among physicians to serve on peer review committees due to the risk of involvement in related future litigation, including medical malpractice lawsuits against a physician under review. In addition, there has been rising concern relating to "sham peer review." Sham peer review is the use of the peer review system to discredit, harass, discipline, or otherwise negatively affect a physician's ability to practice medicine or exercise professional judgment for a non-medical or patient safety related reason. Other criticisms of peer review include over legalization of the process, lack of transparency in the system, and burdensome human and financial toll peer review brings not only to the hospital but also to a physician under review. Recognizing that peer review is necessary to maintain and improve quality medical care, Congress, in 1986, enacted the Health Care Quality Improvement Act (HCQIA.) HCQIA established standards for hospital peer review committees, provided immunity for those who participate in peer review, and created the National Practitioner Data Bank (NPDB). The NPDB is a confidential repository of information related to the professional competence and conduct of CONTINUED AB 655 Page 7 physicians, dentists, and other health care practitioners. Credentialing bodies are required to check the NPDB database before granting privileges to physicians or re-appointing them. Entities such as hospitals, professional societies, state boards, and plaintiffs' attorneys are given access to the NPDB. In enacting the NPDB, the United States Congress intended to improve the quality of health care by encouraging State licensing boards, hospitals, and other health care entities, and professional societies to identify and discipline those who engage in unprofessional behavior; and to restrict the ability of incompetent physicians, dentists, and other health care practitioners to move from State to State without disclosure or discovery of previous medical malpractice payment and adverse action history. The NPDB is a central repository of information about: (1) Malpractice payments made for the benefit of physicians, dentists, and other health care practitioners; (2) licensure actions taken by State medical boards and State boards of dentistry against physicians and dentists; (3) professional review actions primarily taken against physicians and dentists by hospitals and other health care entities, including health maintenance organizations, group practices, and professional societies; (4) actions taken by the Drug Enforcement Administration, and (5) Medicare/Medicaid Exclusions. According to the MBC, it received 138 805 reports in 2007-2008 from hospitals/clinics (74), health care service plans (17), and medical group/employers (47). Out of all of these reports, one accusation was filed, 92 cases are pending disposition and 45 cases were closed. The number of 805 reports varies from year to year, but it appears that when adjusted to the number of physicians and surgeons licensed and living in California, or the number of people living in California, the trend shows a downward direction. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 7/6/11) California Medical Association (source) California Hospital Association CONTINUED AB 655 Page 8 ASSEMBLY FLOOR : 70-0, 05/12/11 AYES: Achadjian, Allen, Ammiano, Atkins, Beall, Bill Berryhill, Block, Blumenfield, Bonilla, Bradford, Brownley, Buchanan, Butler, Charles Calderon, Campos, Carter, Chesbro, Cook, Davis, Dickinson, Donnelly, Eng, Feuer, Fletcher, Fong, Fuentes, Furutani, Beth Gaines, Galgiani, Gatto, Gordon, Grove, Hagman, Halderman, Hall, Harkey, Hayashi, Hill, Huber, Hueso, Huffman, Jeffries, Jones, Knight, Lara, Logue, Ma, Mansoor, Mendoza, Miller, Monning, Morrell, Nestande, Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, Silva, Skinner, Smyth, Solorio, Swanson, Valadao, Wagner, Wieckowski, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Alejo, Cedillo, Conway, Garrick, Gorell, Roger Hernández, Bonnie Lowenthal, Mitchell, Portantino, Torres JJA:nl 7/6/11 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED