HEALTH CARE SERVICES MALPRACTICE ACT - REPEALED — 1975 Pa. Act 111 (historical enacted text)

Historical Act text

SENATE AMENDED
PRIOR PRINTER'S NOS. 1596, 1925, 2055, PRINTER'S NO. 2273
2185
INTRODUCED BY MESSRS. FINEMAN, A. K. HUTCHINSON, IRVIS,
MANDERINO, SHANE, BERSON, O'KEEFE, DeMEDIO, MORRIS, MILLIRON,
GEORGE, COLE, STAPLETON, BRUNNER, ENGLEHART, SCHMITT,
RAPPAPORT, GILLESPIE, REED, GARZIA, WOJDAK, MRS. TOLL,
MESSRS. ROMANELLI, PETRARCA, SALOOM, BLACKWELL,
KOLTER, ZORD, CESSAR AND FISHER, JUNE 3, 1975
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, OCTOBER 1, 1975
AN ACT
1 Relating to medical and health related malpractice insurance,
2 prescribing the powers and duties of the Insurance
3 Department; providing for a joint underwriting plan; the
4 Regional Arbitration Panels for Health Care, compulsory <--
5 screening of claims; collateral sources requirement;
6 limitation of Statute of Limitations; limitation on <--
7 contingent fee compensation; establishing the Patients' <--
8 Compensation Fund; A CATASTROPHE LOSS FUND; and prescribing <--
9 penalties.
10 The General Assembly of the Commonwealth of Pennsylvania
11 hereby enacts as follows:
12 ARTICLE I
13 Preliminary Provisions
14 Section 101. Short Title.--This act shall be known and may
15 be cited as the "Health Care Services Malpractice Act."
16 Section 102. Purpose.--It is the purpose of this act to make
17 available professional liability insurance at a reasonable cost,
18 and to establish a system through which a person who has
1 sustained injury or death as a result of tort or breach of
2 contract by a health care provider can obtain a prompt
3 determination and adjudication of his claim and the
4 determination of fair and reasonable compensation.
5 Section 103. Definitions.--As used in this act:
6 "Administrator" means the office of Administrator for
7 Regional Arbitration Panels for Health Care. <--
8 "Arbitration panel" means Regional Arbitration Panels for <--
9 Health Care.
10 "Claims made" means a policy of professional liability
11 insurance that would limit or restrict the liability of the
12 insurer under the policy to only those claims made or reported
13 during the currency of the policy period and would exclude
14 coverage for claims reported subsequent to the termination even
15 when such claims resulted from occurrences during the currency
16 of the policy period.
17 "Commissioner" means the Insurance Commissioner of this
18 Commonwealth.
19 "Health care provider" means a person, corporation, facility
20 institution or other entity licensed OR APPROVED by the <--
21 Commonwealth to provide health care or professional services as
22 a physician, including a medical doctor and a doctor of
23 osteopathy and a doctor of podiatry; hospital; nursing home;
24 health maintenance organization; health care delivery <--
25 organization for which a professional liability program is not
26 generally available; or an officer, employee or agent thereof OF <--
27 ANY OF THEM acting in the course and scope of his employment.
28 "Informed consent" means for the purposes of this act and of
29 any proceedings arising under the provisions of this act, the
30 consent of a patient freely given to the performance of health <--
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1 care services by a health care provider PHYSICIAN OR PODIATRIST: <--
2 Provided, That prior to the informed consent's CONSENT having <--
3 been given, the health care provider PHYSICIAN OR PODIATRIST has <--
4 informed the patient of THE NATURE OF THE PROPOSED PROCEDURE OR <--
5 TREATMENT AND OF those risks, possible consequences, and <--
6 alternatives to treatment OR DIAGNOSIS that a reasonable patient <--
7 would consider material to his THE decision whether or not to <--
8 undergo treatment OR DIAGNOSIS. No doctor PHYSICIAN OR <--
9 PODIATRIST shall be liable for a failure to obtain an informed
10 consent in the event of an emergency which prevents his <--
11 consulting the patient. No doctor PHYSICIAN OR PODIATRIST shall <--
12 be liable for failure to obtain an informed consent if it is
13 established by a preponderance of the evidence that furnishing
14 the information in question to the patient would have resulted
15 in a seriously adverse effect on THE PATIENT OR ON the <--
16 therapeutic process to the material detriment of the patient's
17 health.
18 "Licensure Board" means the State Board of Medical Education
19 and Licensure, the State Board of Osteopathic Examiners, THE <--
20 STATE BOARD OF PODIATRY EXAMINERS, the Department of Public
21 Welfare and the Department of Health.
22 "Patient" means a natural person who receives or should have
23 received health care from a licensed health care provider.
24 "Professional liability insurance" means insurance against
25 liability on the part of a health care provider arising out of
26 any tort or breach of contract causing injury or death occurring
27 in or resulting from the furnishing of medical services which
28 were or should have been provided.
29 ARTICLE II
30 Services Rendered by Non-health Care Providers
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1 Section 201. Any person rendering services normally rendered
2 by a health care provider who fails to qualify as a health care
3 provider under this act is subject to liability under the law
4 without regard to the provisions of this act.
5 ARTICLE III
6 Administrator for Regional Arbitration Panels for Health Care <--
7 Section 301. There is established within the Department of
8 Insurance JUSTICE the office of Administrator for Regional <--
9 Arbitration Panels for Health Care to be appointed by the
10 Governor. The salary of the administrator shall be set by the
11 Executive Board.
12 Section 302. The administrator may be removed by the
13 Governor for incompetence, neglect of duty, misconduct in
14 office, or other good cause to be stated in writing in the order
15 of removal.
16 Section 303. The administrator shall appoint a secretary and
17 such other employees as are required to administer this act.
18 Their salaries shall be set by the Executive Board. <--
19 Section 304. (a) The administration of this act shall be
20 funded in part from fees charged to each health care provider
21 practicing in the Commonwealth AND PAYABLE TO THE ADMINISTRATOR. <--
22 (b) Physicians AND PODIATRISTS practicing in the <--
23 Commonwealth shall be charged $50 annually.
24 (c) An annual fee of $500 shall be charged to each hospital
25 with 250 or more beds. An annual fee of $350 shall be charged to
26 all other hospitals. An annual fee of $100 shall be charged to
27 all other health care organizations.
28 Section 305. The administrator shall prepare, print and
29 furnish upon request and free of charge, such blank forms and
30 literature as he considers necessary to facilitate and promote
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1 the efficient administration of this act.
2 Section 306. The administrator shall submit to the Governor
3 and the General Assembly annually, on or before December 1, a
4 report of the work of the administrator's office during the
5 preceding fiscal year.
6 Section 307. The Attorney General, after consultation with <--
7 the Insurance Commissioner and the Secretary of Health,
8 ADMINISTRATOR shall adopt and publish such uniform rules and <--
9 regulations as may be necessary to carry out the provisions of
10 this act, and shall prescribe the means, methods and practices
11 necessary to effectuate such provisions. Such rules and
12 regulations shall be consistent with the common and statutory
13 law of the Commonwealth, the Pennsylvania Rules of Civil
14 Procedure, and the Pennsylvania rules of evidence. SUCH RULES <--
15 AND REGULATIONS, AFTER CONSULTATION WITH THE SECRETARY OF
16 HEALTH, MAY INCLUDE PROVISIONS FOR THE USE OF FORMS WHICH
17 PROVIDE FOR THE DISCLOSURE OF THE NATURE OF THE PROPOSED
18 TREATMENT OR DIAGNOSIS, RISKS OF THE PROPOSED TREATMENT OR
19 DIAGNOSIS, AND ALTERNATE METHODS OF TREATMENT OR DIAGNOSIS.
20 Section 308. Regional Arbitration Panels for Health Care.-- <--
21 (a) Regional arbitration panels shall be established by the <--
22 Governor. The Governor in his discretion may establish more than
23 one arbitration panel per region. Regional boundaries shall be
24 those districts established by the Professional Standards Review
25 Organization as designated in section 249 F, Professional
26 Standards Review, Title II, 42 U.S.C. §1301. The regions shall
27 be modified to the extent that they are modified by that act. If
28 said act is repealed, the regions shall remain as last
29 established by said act.
30 (b) Each Regional Arbitration Panel for Health Care shall be
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1 composed of five members who reside in the Professional
2 Standards Review Organization region, including two physicians
3 practicing in the Professional Standards Review Organization
4 region, two attorneys licensed to practice before the
5 Pennsylvania Supreme Court and one layperson who is not a
6 physician nor engaged in the practice of law. Arbitration panel
7 members for each region shall be appointed by the Governor.
8 (c) The Governor shall appoint two alternates for each
9 category of arbitration panel member who shall serve on the
10 arbitration panel in the event that an arbitration panel member
11 must be absent or has a conflict of interest in a particular
12 case. In the event that the alternates have a conflict of
13 interest in a particular case, the remaining arbitration panel
14 members shall choose a substitute to sit for that case.
15 (d) Except as hereinafter provided, each arbitration panel
16 member shall hold office for two years or until his successor is
17 appointed and assumes office. Initial members shall hold office
18 as follows: one physician member and one attorney member shall
19 serve for one year, one physician member and one attorney member
20 shall serve for two years, and the lay person shall serve for
21 two years.
22 (A) THE ADMINISTRATOR SHALL ESTABLISH A SEPARATE ARBITRATION <--
23 PANEL FOR EACH CLAIM; AND AFTER EACH PANEL RENDERS ITS DECISION
24 ON THE CLAIM IT SHALL BE DISBANDED.
25 (B) EACH ARBITRATION PANEL SHALL BE COMPOSED OF FIVE SEVEN <--
26 MEMBERS INCLUDING TWO HEALTH CARE PROVIDERS, ONE ATTORNEY WHO <--
27 SHALL ACT AS CHAIRMAN AND TWO ATTORNEYS, ONE OF WHOM SHALL BE <--
28 DESIGNATED AS CHAIRMAN BY THE ADMINISTRATOR, WHO SHALL DETERMINE
29 QUESTIONS OF LAW AND TWO THREE LAY PERSONS WHO ARE NOT HEALTH <--
30 CARE PROVIDERS NOR LICENSED TO PRACTICE LAW. WHERE A CLAIM <--
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1 INVOLVES A HOSPITAL ONLY, A HOSPITAL ADMINISTRATOR MAY BE CHOSEN
2 AS ONE OF THE HEALTH CARE PROVIDER PANEL MEMBERS. WHEREVER <--
3 POSSIBLE, THE ADMINISTRATOR SHALL SELECT A HOSPITAL
4 ADMINISTRATOR, PODIATRIST, OR OSTEOPATH AS ONE OF THE HEALTH
5 CARE PROVIDER PANEL MEMBERS WHERE THE CLAIM INVOLVES A MEMBER OF
6 ONE OF THOSE CLASSES OF HEALTH CARE PROVIDERS.
7 (C) ARBITRATION PANEL CANDIDATES SHALL BE SELECTED FROM A
8 POOL OF CANDIDATES GENERATED BY THE ADMINISTRATOR. THE RULES AND
9 REGULATIONS PROMULGATED BY THE ADMINISTRATOR PERTAINING TO THE
10 SELECTION OF ARBITRATORS SHALL PROVIDE THAT THE ADMINISTRATOR
11 SHALL SEND SIMULTANEOUSLY TO EACH PARTY AN IDENTICAL LIST OF
12 FIVE ARBITRATION PANEL CANDIDATES IN EACH OF THE THREE
13 CATEGORIES TOGETHER WITH A BRIEF BIOGRAPHICAL STATEMENT ON EACH
14 CANDIDATE. A PARTY MAY STRIKE FROM THE LIST ANY TWO NAMES WHICH
15 ARE UNACCEPTABLE IN EACH CATEGORY. ANY MUTUALLY AGREEABLE
16 CANDIDATE MAY BE INVITED BY THE ADMINISTRATOR TO SERVE. WHERE
17 INSUFFICIENT MUTUALLY AGREEABLE CANDIDATES ARE SELECTED FOR ANY
18 CATEGORY A SECOND LIST OF THAT CATEGORY SHALL BE SENT BY THE
19 ADMINISTRATOR. IF A COMPLETE ARBITRATION PANEL IS NOT SELECTED
20 BY MUTUAL AGREEMENT OF THE PARTIES THE ADMINISTRATOR SHALL
21 APPOINT THE REMAINDER OF THE ARBITRATION PANEL. ANY APPOINTMENT
22 BY THE ADMINISTRATOR SHALL BE SUBJECT TO CHALLENGE BY ANY PARTY
23 FOR CAUSE. A REQUEST TO STRIKE AN ARBITRATOR FOR CAUSE SHALL BE
24 DETERMINED BY THE ADMINISTRATOR. THE PARTIES SHALL NOT BE
25 RESTRICTED TO THE ARBITRATION PANEL CANDIDATES SUBMITTED FOR
26 CONSIDERATION; BUT, IF ALL PARTIES MUTUALLY AGREE UPON AN
27 ARBITRATION PANELIST WITHIN A DESIGNATED CATEGORY, THE PANELIST
28 SHALL BE INVITED TO SERVE.
29 (e) (D) The attorney and physician HEALTH CARE PROVIDER <--
30 members of each arbitration panel shall be OR HAVE BEEN <--
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1 practicing members of their respective professions.
2 (f) (E) Arbitration panel members shall be paid on a per <--
3 diem or salary basis as fixed by the Executive Board plus actual
4 and necessary expenses incurred in the performance of their
5 official duties. The administrator shall provide for all other
6 necessary expenses of the arbitration panels.
7 (g) Each arbitration panel shall select its own chairperson. <--
8 (h) A member of an arbitration panel may be removed by the
9 Governor for incompetence, neglect of duty, misconduct in
10 office, or other good cause to be stated in writing in the order
11 of removal. Any member of an arbitration panel so removed shall
12 have the right to appeal his removal to courts of law.
13 (i) (F) No member shall participate in a case in which he <--
14 may have an interest. The chairperson shall appoint a temporary <--
15 alternate from the same category of arbitration panel member for
16 such case. If the chairperson has an interest in the case, the
17 alternate shall be chosen by the remaining arbitration panel
18 members.
19 Section 309. The arbitration panel shall have original
20 exclusive jurisdiction to hear and decide any claim for loss or
21 damages brought by a patient or his representative.
22 ARTICLE IV
23 Procedure For Filing a Claim
24 Section 401. A patient or his representative, having a claim
25 for loss or damages shall file with the administrator a
26 complaint or such other form, with such fees, as prescribed by
27 the rules and regulations adopted by the Attorney General <--
28 ADMINISTRATOR. The administrator shall refer the complaint to <--
29 the appropriate arbitration panel. THE FILING OF THE COMPLAINT <--
30 WITH THE ADMINISTRATOR SHALL TOLL THE STATUTE OF LIMITATIONS.
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1 Section 402. Upon assignment of a claim to an arbitration
2 panel, said arbitration panel shall expeditiously hear and
3 determine the claim in accordance with the rules and regulations
4 adopted by the Attorney General ADMINISTRATOR. <--
5 ARTICLE V
6 Procedure Before the Regional Arbitration Panel for Health Care <--
7 Section 501. Arbitration panel hearings shall be conducted
8 in the Professional Standards Review Organization region COUNTY <--
9 where the cause of action arose, but may, within the discretion
10 of the administrator, be held in any other place.
11 Section 502. The arbitration panel, at any time, upon a <--
12 proper showing or on its own motion, may order, with appropriate
13 notice, that any additional party be joined when it deems the
14 presence of that party necessary and proper to a just
15 determination of the claim. AT ANY TIME UP TO THE SELECTION OF <--
16 THE PANEL MEMBERS, A PARTY MAY JOIN ANY ADDITIONAL PARTY WHO MAY
17 BE NECESSARY AND PROPER TO A JUST DETERMINATION OF THE CLAIM.
18 Section 503. Service of complaints and notice of all
19 hearings and proceedings before the arbitration panel, unless
20 otherwise directed, shall be made personally or given by
21 certified mail, and proof of the mailing of notice shall be
22 prima facie evidence of service.
23 Section 504. All briefs or pleadings shall contain a
24 certification that on or before the day of filing, a copy of the
25 document was served on opposing counsel, or on the adverse party
26 or parties if there is no counsel of record.
27 Section 505. A majority vote of the full arbitration panel
28 shall be required to decide all matters EXCEPT QUESTIONS OF LAW <--
29 before it.
30 Section 506. Except as provided in this act, the arbitration
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1 panel is bound by the common and statutory law of the
2 Commonwealth, the Pennsylvania Rules of Civil Procedure, and the
3 Pennsylvania rules of evidence.
4 Section 507. The arbitration panel may, upon the application
5 of either party or upon its own motion, appoint a disinterested
6 and qualified expert to make any necessary professional or
7 expert examination of the claimant or relevant evidentiary
8 matter and to testify as a witness in respect thereto. Such an
9 expert witness shall be allowed necessary expenses and a
10 reasonable fee to be fixed and paid by the arbitration panel.
11 Section 508. (a) The arbitration panel is authorized and
12 empowered to:
13 (1) examine the relevant facts to determine if a case exists
14 for recovery;
15 (2) make findings of fact;
16 (3) take depositions and testimony;
17 (4) assure both parties full access to the facts;
18 (5) make available to the parties the norms, standards and
19 criteria employed by health care providers in the Professional
20 Standards Review Organization region;
21 (6) subpoena witnesses, and administer oaths;
22 (7) apply to the court of common pleas to enforce the
23 attendance and testimony of witnesses and the production and
24 examination of books, papers and records;
25 (8) consider and approve offers of settlement and proposals
26 of adjustment between plaintiffs and defendants;
27 (9) make determinations as to liability and award of
28 damages; and
29 (10) exercise all other powers and duties conferred upon it
30 by law.
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1 (b) A copy of the arbitration panel's decision shall be sent
2 to each party at the same time it is submitted to the
3 administrator.
4 Section 509. Appeals from determinations made by the
5 arbitration panel may be taken to SHALL BE A TRIAL DE NOVO IN <--
6 the court of common pleas OR UNITED STATES DISTRICT COURT in the <--
7 same manner as appeals in civil actions, ACCORDANCE WITH THE <--
8 RULES REGARDING APPEALS IN COMPULSORY CIVIL ARBITRATION AND THE
9 PENNSYLVANIA RULES OF CIVIL PROCEDURE OR THE FEDERAL RULES OF <--
10 CIVIL PROCEDURE, except that the party seeking to file an appeal
11 must first pay all record costs to the prothonotary of the court
12 in which he seeks to file his appeal. If the court of common
13 pleas finds at the completion of the trial that the basis for
14 the appeal was grossly insubstantial, WITHOUT JUSTIFICATION, <--
15 CAPRICIOUS, FRIVOLOUS AND UNREASONABLE, THEN the appellant shall
16 be liable for all costs of arbitration and trial, including
17 record costs, arbitrator's compensation discovery costs, and
18 fees and expenses of the arbitration panel's expert witnesses.
19 Section 510. Where an appeal is taken the decision, AND <--
20 findings and award, OF FACT, if any, of the arbitration panel <--
21 shall be admissible as evidence before the court; PROVIDED, <--
22 HOWEVER, THAT ANY AWARD OF DAMAGES SHALL NOT BE ADMISSIBLE AS
23 EVIDENCE.
24 Section 511. (a) If an appeal is not entered within the
25 prescribed time, the party in whose favor the award shall be <--
26 HAVE BEEN made may request the arbitration panel ADMINISTRATOR <--
27 to transfer the record and judgment to the court of common pleas
28 in the district where the plaintiff or defendant resides, for
29 execution. It shall be the duty of the prothonotary, at the
30 request of the party in whose favor the award shall have been
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1 made, AND UPON RECEIPT AND FILING OF THE ARBITRATION AWARD FROM <--
2 THE ADMINISTRATOR, to issue execution, or such other process as
3 may be necessary and proper, to carry into effect the judgment
4 entered upon such award, subject to the provisions of law
5 concerning the stay of execution upon judgments.
6 (b) After judgment, the plaintiff may proceed upon said
7 transferred record and judgment for the collection thereof, with
8 costs, by execution, bill of discovery or attachment, in like
9 manner as if the same were a judgment of the court to which it
10 has been transferred.
11 Section 512. In an action brought to recover damages under
12 this act, no advance payment made by the defendant health care
13 provider or his professional liability insurer to or for the
14 plaintiff shall be construed as an admission of liability for
15 injuries or damages suffered by the plaintiff.
16 Section 513. Any final award in favor of the plaintiff,
17 shall be reduced to the extent of any advance payment. The
18 advance payment shall inure to the exclusive benefit of the
19 defendant or the insurer making the payment.
20 Section 514. In the event that the arbitration panel finds
21 that the injury or death of the patient was the result in whole
22 or in part of tort or breach of contract by a health care
23 provider, and such decision is not overturned on appeal, the
24 arbitration panel shall report such findings to the licensure
25 board and the Professional Standards Review Organization. The
26 appropriate board of licensure shall promptly investigate the
27 report and take such disciplinary action as may be appropriate.
28 ARTICLE VI
29 Awards
30 Section 601. Upon a finding by the arbitration panel that
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1 the defendant's conduct was tortious or constituted a breach of
2 contract, the plaintiff shall have the same rights of recovery
3 for damages as are now provided by law.
4 Section 602. The loss and damages awarded under this act
5 shall be reduced by any public collateral source of compensation
6 or benefits. A right of subrogation is not enforceable against
7 any benefit or compensation awarded under this act or against
8 any health care provider or its liability insurer.
9 Section 603. In the event the arbitration panel finds that
10 the injury or damage to the patient was caused in whole or in
11 part by the wilful or wanton misconduct of any of the
12 defendants, the panel may award SUCH punitive damages against <--
13 the defendant AS MAY BE AWARDED AT LAW. <--
14 Section 604. (a) When a plaintiff is represented by an
15 attorney in the prosecution of his claim the plaintiff's
16 attorney fees from any award made from the first $100,000 may
17 not exceed 30%, from the second $100,000 attorney fees may not
18 exceed 25%, and attorney fees may not exceed 20% on the balance
19 of any award.
20 (b) A plaintiff has the right to elect to pay for the
21 attorney's services on a mutually satisfactory per diem basis.
22 The election, however, must be exercised in written form at the
23 time of employment.
24 Section 605. No claim for recovery pursuant to the <--
25 provisions of this act may be commenced, unless the action is
26 filed within the longer period of (i) two years after the breach
27 of contract or the tort complained of, or, (ii) one year after
28 the date when the breach of contract, the tort or the resulting
29 injury was discovered, or in the exercise of reasonable care,
30 should have been discovered. In no instance shall a claim be
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1 commenced more than seven years after the breach of contract or
2 the tort complained of. This section applies to all persons
3 regardless of minority or other legal disability. ALL CLAIMS FOR <--
4 RECOVERY PURSUANT TO THIS ACT MUST BE COMMENCED WITHIN THE
5 EXISTING APPLICABLE STATUTES OF LIMITATION.
6 IN THE EVENT THAT ANY CLAIM IS FILED AGAINST A HEALTH CARE <--
7 PROVIDER SUBJECT TO THE PROVISONS OF ARTICLE VII MORE THAN FOUR
8 YEARS AFTER THE BREACH OF CONTRACT OR TORT OCCURRED, SUCH CLAIM
9 SHALL BE PAID BY THE MEDICAL PROFESSIONAL LIABILITY CATASTROPHE
10 LOSS FUND ESTABLISHED PURSUANT TO SECTION 701. IF SUCH CLAIM IS
11 MADE AFTER FOUR YEARS BECAUSE OF THE WILFULL CONCEALMENT OF THE
12 HEALTH CARE PROVIDER, THE FUND SHALL HAVE THE RIGHT OF INDEMNITY
13 FROM SUCH HEALTH CARE PROVIDER. A filing pursuant to section 401
14 shall toll the running of the limitations contained herein.
15 Section 606. In the absence of a special contract in
16 writing, a physician or surgeon HEALTH CARE PROVIDER is neither <--
17 a warrantor nor a guarantor of a cure.
18 ARTICLE VII
19 Medical Professional Liability Catastrophe Loss Fund
20 Section 701. (a) Every health care provider subject to the
21 provisions of this act EXCEPT HOSPITALS, NURSING HOMES, OR <--
22 HEALTH MAINTENANCE ORGANIZATIONS shall insure his liability by
23 purchasing professional liability insurance in the amount of
24 $100,000 per occurrence AND $300,000 PER ANNUAL AGGREGATE, <--
25 hereinafter known as "basic coverage insurance." GENERAL AND <--
26 SPECIAL HOSPITALS MAY MAINTAIN PROFESSIONAL LIABILITY INSURANCE
27 IN THE AMOUNT OF $1,000,000. UPON CERTIFICATION BY THE
28 ADMINISTRATOR, OF THE AFOREMENTIONED AMOUNT OF INSURANCE
29 MAINTAINED BY ALL GENERAL AND SPECIAL HOSPITALS, ALL SUCH
30 HOSPITALS SHALL BE EXEMPT FROM THE PROVISIONS OF THIS ARTICLE.
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1 (b) No insurer providing professional liability insurance to
2 a health care provider pursuant to the provisions of section
3 701(a) shall be liable for payment of any claim against a health
4 care provider for any loss or damages awarded in a professional
5 liability action in excess of $100,000 per occurrence AND <--
6 $300,000 PER ANNUAL AGGREGATE.
7 (c) There is hereby created a contingency fund for the
8 purpose of paying all awards for loss or damages against a
9 health care provider as a consequence of any medical malpractice
10 action which is ARE in excess of $100,000. Such fund shall be <--
11 known as the "Medical Professional Liability Catastrophe Loss
12 Fund," in this Article VII called the "fund." THE LIMIT OF <--
13 LIABILITY OF THE FUND SHALL BE $1,000,000 FOR EACH OCCURRENCE
14 AND $3,000,000 PER ANNUAL AGGREGATE.
15 (d) The fund shall be funded by the levying of an annual
16 surcharge on all health care providers. The surcharge shall be
17 determined by the commissioner DIRECTOR APPOINTED PURSUANT TO <--
18 SECTION 702 based upon actuarial principles and SUBJECT TO THE <--
19 PRIOR APPROVAL OF THE COMMISSIONER. THE SURCHARGE shall not
20 exceed 10% of the cost to each health care provider for
21 maintenance of professional liability insurance OR $100, <--
22 WHICHEVER IS GREATER. All THE FUND AND ALL income from the fund <--
23 shall be held in trust, deposited in a segregated account,
24 invested and reinvested by the commissioner DIRECTOR, and shall <--
25 not become a part of the General Fund of the Commonwealth. If
26 the total fund exceeds the sum of $15,000,000 at the end of any
27 calendar year after the payment of all claims and expenses,
28 including the expenses of operation of the office of the
29 director, the commissioner DIRECTOR shall reduce the surcharge <--
30 provided in this section in order to maintain the fund at an
19750H1367B2273 - 15 -
1 approximate level of $15,000,000. ALL CLAIMS SHALL BE COMPUTED <--
2 ON DECEMBER 31 OF THE YEAR IN WHICH THE CLAIM BECOMES FINAL. ALL
3 SUCH CLAIMS SHALL BE PAID WITHIN TWO WEEKS THEREAFTER. IF THE
4 FUND WOULD BE EXHAUSTED BY THE PAYMENT IN FULL OF ALL CLAIMS
5 ALLOWED DURING ANY CALENDAR YEAR, THEN THE AMOUNT PAID TO EACH
6 CLAIMANT SHALL BE PRORATED. ANY AMOUNTS DUE AND UNPAID SHALL BE
7 PAID IN THE FOLLOWING CALENDAR YEAR. THE ANNUAL SURCHARGE ON
8 HEALTH CARE PROVIDERS AND ANY INCOME REALIZED BY INVESTMENT OR
9 REINVESTMENT SHALL CONSTITUTE THE SOLE AND EXCLUSIVE SOURCES OF
10 FUNDING FOR THE FUND. NO CLAIMS OR EXPENSES AGAINST THE FUND
11 SHALL BE DEEMED TO CONSTITUTE A DEBT OF THE COMMONWEALTH OR A
12 CHARGE AGAINST THE GENERAL FUND OF THE COMMONWEALTH. The
13 commissioner DIRECTOR shall issue rules and regulations <--
14 consistent with this section regarding the establishment of the
15 fund and the levying, payment and collection of the surcharges.
16 (e) The failure of any health care provider to comply with
17 any of the provisions of this section or any of the rules and
18 regulations issued by the commissioner DIRECTOR shall result in <--
19 the suspension or revocation of the health care provider's
20 license by the licensure board.
21 Section 702. (a) The Fund shall be administered by a
22 director who shall be appointed by the Governor and whose salary
23 shall be fixed by the Executive Board. The director may employ
24 and fix the compensation of such clerical and other assistants
25 as may be deemed necessary.
26 (b) The director shall be provided with adequate offices in
27 which the records shall be kept and official business shall be
28 transacted, and the director shall also be provided with
29 necessary office furniture and other supplies.
30 (c) The basic coverage insurance carrier shall promptly
19750H1367B2273 - 16 -
1 notify the director of any case where it reasonably believes
2 that the value of the claim exceeds the basic insurer's coverage
3 OR FALLS UNDER SECTION 605. Failure to so notify the director <--
4 shall make the basic coverage insurance carrier responsible for
5 the payment of the entire award or verdict, provided that the
6 fund has been prejudiced by the failure of notice.
7 (d) The basic coverage insurance carrier shall at all times
8 be responsible to provide a defense for the insured health care
9 provider. In such instances where the director has been notified
10 in accordance with subsection (c), the director may, at his
11 option, join in the defense and be represented by counsel.
12 (e) In the event that the basic coverage insurance carrier
13 enters into a settlement with the claimant to the full extent of
14 its liability as provided above, it may obtain a release from
15 the claimant to the extent of its payment, which payment shall
16 have no effect upon any excess claim against the Fund.
17 (f) The director is authorized to defend, litigate, settle
18 and/or compromise any claim in excess of the basic coverage
19 hereinbefore provided.
20 (g) The director is hereby empowered to purchase, on behalf
21 of the fund, as much insurance or re-insurance as is necessary
22 to preserve the fund.
23 (H) NOTHING IN THIS ACT SHALL PRECLUDE THE DIRECTOR FROM <--
24 ADJUSTING OR PAYING FOR THE ADJUSTMENT OF CLAIMS.
25 Section 703. The provisions of sections 701 and 702 of this <--
26 act shall automatically be repealed on January 1, 1978 unless
27 such sections are reenacted by the General Assembly prior to
28 such date. In the event the General Assembly fails to reenact
29 such sections prior to such date, any moneys remaining in the
30 Fund shall be returned to the health care providers in
19750H1367B2273 - 17 -
1 proportion to the contributions made by such health care
2 providers under such terms and conditions as determined by rules
3 and regulations promulgated by the commissioner.
4 SECTION 703. IF AFTER COLLECTION OF THE SECOND ANNUAL <--
5 SURCHARGE, AND FOLLOWING THE COLLECTION OF ANY SUBSEQUENT ANNUAL
6 SURCHARGE, THE FUND IS REDUCED BELOW $7,500,000, THE DIRECTOR
7 SHALL CERTIFY SUCH FACTS TO THE GOVERNOR AND THE GENERAL
8 ASSEMBLY. IF UPON THE EXPIRATION OF 60 DAYS, BUT IN NO EVENT
9 LESS THAN 15 LEGISLATIVE DAYS, FOLLOWING SUCH CERTIFICATION, NO
10 REMEDIAL ACTION IS TAKEN BY THE GENERAL ASSEMBLY, AND ENACTED
11 INTO LAW, THE LIABILITY OF THE FUND FOR CLAIMS ARISING FROM
12 OCCURRENCES AFTER SUCH PERIOD SHALL CEASE.
13 IN SUCH CASE, THE FUND WILL CONTINUE TO FUNCTION UNTIL ALL OF
14 ITS LIABILITY FOR CLAIMS HAS BEEN SATISFIED. THE DIRECTOR IS
15 AUTHORIZED TO CONTINUE TO COLLECT A SURCHARGE ANNUALLY WITHOUT
16 LIMIT, TO THE EXTENT NECESSARY TO SATISFY THE OBLIGATIONS OF THE
17 FUND. SUCH SURCHARGE MUST BE FILED WITH AND APPROVED BY THE
18 COMMISSIONER PRIOR TO USE.
19 ANY MONEYS REMAINING IN THE FUND FOLLOWING THE SATISFACTION
20 OF ALL ITS LIABILITIES SHALL BE RETURNED TO THE HEALTH CARE
21 PROVIDERS UNDER SUCH TERMS AND CONDITIONS AS DETERMINED BY A
22 PLAN PREPARED BY THE DIRECTOR AND APPROVED BY THE COMMISSIONER.
23 SECTION 703. IF AFTER COLLECTION OF THE SECOND ANNUAL <--
24 SURCHARGE, AND FOLLOWING THE COLLECTION OF ANY SUBSEQUENT ANNUAL
25 SURCHARGE, THE FUND IS REDUCED BELOW $7,500,000, THE DIRECTOR
26 SHALL CERTIFY SUCH FACTS TO THE GOVERNOR AND THE GENERAL
27 ASSEMBLY. IF UPON THE EXPIRATION OF 25 LEGISLATIVE DAYS,
28 FOLLOWING SUCH CERTIFICATION, NO REMEDIAL ACTION IS TAKEN BY THE
29 GENERAL ASSEMBLY, AND ENACTED INTO LAW, THE LIABILITY OF THE
30 FUND FOR CLAIMS ARISING FROM OCCURRENCES AFTER SUCH PERIOD SHALL
19750H1367B2273 - 18 -
1 CEASE AND THE JOINT UNDERWRITING ASSOCIATION CREATED UNDER
2 ARTICLE VIII SHALL TERMINATE AND THE PROVISIONS OF ARTICLE VII,
3 SECTION 701(A) AND VIII SHALL NO LONGER APPLY.
4 IN SUCH CASE, THE FUND WILL CONTINUE TO FUNCTION UNTIL ALL OF
5 ITS LIABILITY FOR CLAIMS HAS BEEN SATISFIED. THE DIRECTOR IS
6 AUTHORIZED TO CONTINUE TO COLLECT A SURCHARGE ANNUALLY WITHOUT
7 LIMIT, TO THE EXTENT NECESSARY TO SATISFY THE OBLIGATIONS OF THE
8 FUND. SUCH SURCHARGE MUST BE FILED WITH AND APPROVED BY THE
9 COMMISSIONER PRIOR TO USE.
10 ANY MONEYS REMAINING IN THE FUND FOLLOWING THE SATISFACTION
11 OF ALL ITS LIABILITIES SHALL BE RETURNED TO THE HEALTH CARE
12 PROVIDERS UNDER SUCH TERMS AND CONDITIONS AS DETERMINED BY A
13 PLAN PREPARED BY THE DIRECTOR AND APPROVED BY THE COMMISSIONER.
14 SECTION 704. DETERMINATION OF THE ADEQUACY OF THE SURCHARGE
15 IS TO BE BASED ON THE REASONABLY ANTICIPATED PAYMENT OF CLAIMS
16 AND OTHER EXPENSES OF THE FUND DURING THE PERIOD FOR WHICH THE
17 SURCHARGE IS MADE. THE SURCHARGE SHALL BE ASSESSED AGAINST EACH
18 HEALTH CARE PROVIDER QUALIFYING AS SUCH AT THE TIME THE
19 SURCHARGE IS MADE.
20 ARTICLE VIII
21 Availability of Insurance
22 Section 801. The commissioner shall establish and implement
23 or approve and supervise a plan assuring that professional
24 liability insurance will be conveniently and expeditiously
25 available, subject only to payment or provisions for payment of
26 the premium, to each health care provider THOSE PROVIDERS who <--
27 cannot conveniently obtain insurance through ordinary methods at
28 rates not in excess of those applicable to similarly situated
29 health care providers under the plan. The plan may provide
30 reasonable means for the transfer of health care providers
19750H1367B2273 - 19 -
1 insured thereunder into the ordinary insurance market, at the
2 same or lower rates pursuant to regulations established by the
3 Insurance Commissioner. The plan may be implemented by a joint
4 underwriting association or any other method that results in all <--
5 applicants being conveniently afforded access to the insurance
6 coverages on reasonable and not unfairly discriminatory terms.
7 Section 802. All insurers except fraternal benefit societies <--
8 admitted to transact the business of insurance in this
9 Commonwealth writing professional liability and personal injury
10 liability insurance in this Commonwealth or any other
11 jurisdiction, other than reinsurers, shall participate in the <--
12 plan. THE PLAN SHALL CONSIST OF ALL INSURERS AUTHORIZED TO WRITE <--
13 INSURANCE PURSUANT TO SECTION 202(C)(4) AND (11) OF THE ACT OF
14 MAY 17, 1921 (P.L.682, NO.284), KNOWN AS "THE INSURANCE COMPANY
15 LAW OF 1921." The plan shall provide for equitable apportionment
16 of the financial burdens of insurance provided to applicants
17 under the plan and the costs of operation of the plan among all
18 participating insurers writing such insurance coverage.
19 Section 803. (A) Subject to the supervision and approval of <--
20 the commissioner, insurers may consult and agree with each other
21 and with other appropriate persons as to the organization,
22 administration and operation of the plan and as to rates and
23 rate modifications for insurance coverages provided under the
24 plan. Rates and rate modifications adopted or changed for
25 insurance coverages provided under the plan shall be approved by
26 the commissioner in accordance with the act of June 11, 1947
27 (P.L.538, No.246), known as "The Casualty and Surety Rate
28 Regulatory Act."
29 (B) IN THE EVENT THAT THE JOINT UNDERWRITING ASSOCIATION <--
30 SUFFERS A DEFICIT IN ANY CALENDAR YEAR, THE BOARD OF DIRECTORS
19750H1367B2273 - 20 -
1 OF THE JOINT UNDERWRITING ASSOCIATION SHALL SO CERTIFY TO THE
2 DIRECTOR OF THE CATASTROPHE LOSS FUND AND THE INSURANCE
3 COMMISSIONER. SUCH CERTIFICATION SHALL BE SUBJECT TO THE REVIEW
4 AND APPROVAL OF THE INSURANCE COMMISSIONER. WITHIN 60 DAYS
5 FOLLOWING SUCH CERTIFICATION AND APPROVAL THE DIRECTOR OF THE
6 FUND SHALL MAKE SUFFICIENT PAYMENT TO THE JOINT UNDERWRITING
7 ASSOCIATION TO COMPENSATE FOR SAID DEFICIT. A DEFICIT SHALL
8 EXIST WHENEVER THE SUM OF THE EARNED PREMIUMS COLLECTED BY THE
9 JOINT UNDERWRITING ASSOCIATION AND THE INVESTMENT INCOME
10 THEREFROM IS EXHAUSTED BY VIRTUE OF PAYMENT OF OR ALLOCATION FOR
11 THE JOINT UNDERWRITING ASSOCIATION'S NECESSARY ADMINISTRATIVE
12 EXPENSES, TAXES, LOSSES, LOST ADJUSTMENT EXPENSES AND RESERVES,
13 INCLUDING RESERVES FOR: (1) LOSSES INCURRED, (2) LOSSES INCURRED
14 BUT NOT REPORTED, (3) LOSS ADJUSTMENT EXPENSES, (4) UNEARNED
15 PREMIUMS.
16 Section 804. To carry out the objectives of this article,
17 the commissioner may adopt rules, make orders, enter into
18 agreements with other governmental or private entities and
19 individuals and form and operate or authorize the formation and
20 operation of bureaus and other legal entities.
21 Section 805. The plan shall assure that there is available
22 through the private sector or otherwise, to all applicants,
23 adequate premium financing or provision for the installment
24 payment of premiums subject to customary terms and conditions.
25 Section 806. The commissioner shall MAY select an insurer to <--
26 administer any plan established pursuant to this article. Such
27 insurer shall be admitted to transact the business of insurance
28 in this Commonwealth.
29 Section 807. The Insurance Commissioner shall not approve a
30 policy written on a "claims made" basis by any insurer doing
19750H1367B2273 - 21 -
1 business in this Commonwealth unless such insurer shall
2 guarantee to the commissioner the continued availability of
3 suitable liability protection for health care providers
4 subsequent to the discontinuance of professional practice by the
5 health care provider or the sooner termination of the insurance
6 policy by the insurer or the health care provider for so long as
7 there is a reasonable probability of a claim for injury being <--
8 discovered but not reported. FOR WHICH THE HEALTH CARE PROVIDER <--
9 MAY BE HELD LIABLE.
10 Section 808. If 25% THE PRIVATE INSURANCE MARKET UNFAIRLY <--
11 DISCRIMINATES AGAINST HIGHER RISK PHYSICIANS BY DENYING
12 PROFESSIONAL LIABILITY INSURANCE COVERAGE TO 50% or more of all
13 physicians in any of Specialty Board Certified Classes 3, 4 and <--
14 5 are denied professional liability insurance coverage INSURANCE <--
15 RATING CLASSES 3, 4 OR 5, OR THEIR EQUIVALENTS the commissioner,
16 after notice in the Pennsylvania Bulletin and public hearings,
17 may declare that the method of providing coverage under sections <--
18 801 and 802 shall be the sole and exclusive method within this
19 Commonwealth. MAY DECLARE THAT THE PLAN ESTABLISHED UNDER THIS <--
20 ARTICLE SHALL BE THE SOLE AND EXCLUSIVE SOURCE OF PROFESSIONAL
21 LIABILITY INSURANCE FOR HEALTH CARE PROVIDERS WITHIN THIS
22 COMMONWEALTH. THE COMMISSIONER MAY DISSOLVE THE PLAN IF HE
23 DETERMINES THAT IT IS NO LONGER NECESSARY AND THAT AN ADEQUATE
24 MARKET WILL BE MAINTAINED FOR PROFESSIONAL LIABILITY INSURANCE
25 FOR HEALTH CARE PROVIDERS BY THE PRIVATE INSURANCE MARKET. THE
26 COMMISSIONER MAY REESTABLISH THE PLAN IF HE SHALL FIND THAT THE
27 PRIVATE INDUSTRY HAS FAILED TO PROVIDE AN ADEQUATE MARKET FOR
28 PROFESSIONAL LIABILITY INSURANCE BY DENYING PROFESSIONAL <--
29 LIABILITY INSURANCE COVERAGE TO 50% OR MORE OF ALL RATING
30 CLASSES 3, 4 OR 5, OR THEIR EQUIVALENTS, AND MAY DECLARE IT THE
19750H1367B2273 - 22 -
1 SOLE AND EXCLUSIVE SOURCE OF SUCH INSURANCE UNDER THE PROCEDURE
2 SET FORTH IN THIS SECTION.
3 SECTION 809. THE PLAN SHALL REPORT TO THE COMMISSIONER
4 ANNUALLY ON A DATE AND, ON A FORM PRESCRIBED BY THE COMMISSIONER
5 THE TOTAL AMOUNT OF PREMIUM DOLLARS COLLECTED, THE TOTAL AMOUNT
6 OF CLAIMS PAID AND EXPENSES INCURRED THEREWITH, THE TOTAL AMOUNT
7 OF RESERVE SET ASIDE FOR FUTURE CLAIMS, THE NATURE AND SUBSTANCE
8 OF EACH CLAIM, THE DATE AND PLACE IN WHICH EACH CLAIM AROSE, THE
9 AMOUNTS PAID, IF ANY, AND THE DISPOSITION OF EACH CLAIM
10 (JUDGMENT OF ARBITRATION PANEL, JUDGMENT OF COURT, SETTLEMENT OR
11 OTHERWISE), AND SUCH ADDITIONAL INFORMATION AS THE COMMISSIONER
12 SHALL REQUIRE.
13 SECTION 810. THE PLAN SHALL CONDUCT STUDIES AND REVIEW
14 MEMBER RECORDS FOR THE PURPOSE OF DETERMINING THE CAUSES OF
15 PATIENT COMPENSATION CLAIMS AND MAKE RECOMMENDATIONS FOR
16 LEGISLATIVE, REGULATORY AND OTHER CHANGES NECESSARY TO REDUCE
17 THE FREQUENCY AND SEVERITY OF SUCH CLAIMS.
18 ARTICLE IX
19 Disciplinary Proceedings
20 Section 901. Investigations.--The State Board of Medical
21 Education and Licensure, and the State Board of Osteopathic <--
22 Examiners AND THE STATE BOARD OF PODIATRY EXAMINERS shall employ <--
23 such qualified investigators and attorneys as are necessary to
24 fully implement their authority to revoke, suspend, limit or
25 otherwise regulate the licenses of physicians; issue reprimands,
26 fines, require refresher educational courses, or require
27 licensees to submit to medical treatment.
28 Section 902. Hearings.--(a) The State Board of Medical
29 Education and Licensure, and the State Board of Osteopathic <--
30 Examiners AND THE STATE BOARD OF PODIATRY EXAMINERS shall <--
19750H1367B2273 - 23 -
1 appoint, with the approval of the Governor, such hearing
2 examiners as shall be necessary to conduct hearings in
3 accordance with the disciplinary authority granted by the act of
4 July 20, 1974 (P.L.551, No.190), known as the "Medical Practice
5 Act of 1974," and the act of March 19, 1909 (P.L.46, No.29),
6 entitled, as amended, "An act to regulate the practice of
7 osteopathy and surgery in the State of Pennsylvania; to provide
8 for the establishment of a State Board of Osteopathic Examiners;
9 to define the powers and duties of said Board of Osteopathic
10 Examiners; to provide for the examining and licensing of
11 osteopathic physicians and surgeons in this State; and to
12 provide penalties for the violation of this act."
13 (b) The State Board of Medical Education and Licensure or
14 the State Board of Osteopathic Examiners shall have the power to
15 adopt and promulgate rules and regulations setting forth the
16 functions, powers, standards and duties to be followed by any
17 hearing examiners appointed under the provisions of this
18 section.
19 (c) Such hearing examiners shall have the power to conduct
20 hearings in accordance with the regulations of the State Board
21 of Medical Education and Licensure or the State Board of
22 Osteopathic Examiners, and to issue subpoenas requiring the
23 attendance and testimony of individuals or the production of,
24 pertinent books, records, documents and papers by persons whom
25 they believe to have information relevant to any matter pending
26 before the examiner. Such examiner shall also have the power to
27 administer oaths.
28 Section 903. Hearing Examiners' Decisions.--The hearing
29 examiner shall hear evidence submitted and arguments of counsel,
30 if any, with reasonable dispatch, and shall promptly record his
19750H1367B2273 - 24 -
1 decision, supported by findings of fact, and a copy thereof
2 shall immediately be sent to the State Board of Medical
3 Education and Licensure or the State Board of Osteopathic
4 Examiners and to counsel of record, or the parties, if not
5 represented.
6 Section 904. Evidence.--In all hearings proof may be made by
7 oral testimony or by deposition or interrogatories. Such
8 depositions shall be taken in the manner and upon the notice
9 required by the rules for taking depositions in civil cases and
10 may be introduced into evidence without regard to the
11 availability of the witness to testify at the time of trial. Any
12 witness, however, may be subpoenaed by any party to the
13 controversy to testify pursuant to the rules appropriate to
14 civil actions and shall be considered to be the witness of the
15 party who offered the deposition.
16 Section 905. Review of the State Board of Medical Education
17 and Licensure, or the State Board of Osteopathic Examiners OR <--
18 THE STATE BOARD OF PODIATRY EXAMINERS.--(a) If application for
19 review is made to the State Board of Medical Education and
20 Licensure, or the State Board of Osteopathic Examiners OR THE <--
21 STATE BOARD OF PODIATRY EXAMINERS within 20 days from the date
22 of any decision made as a result of a hearing held by a hearing
23 examiner, the State Board of Medical Education and Licensure, or <--
24 the State Board of Osteopathic Examiners OR THE STATE BOARD OF <--
25 PODIATRY EXAMINERS shall review the evidence, and if deemed
26 advisable by the board, hear argument and additional evidence.
27 (b) As soon as practicable, the State Board of Medical
28 Education and Licensure, or the State Board of Osteopathic <--
29 Examiners OR THE STATE BOARD OF PODIATRY EXAMINERS shall make a <--
30 decision and shall file the same with its finding of the facts
19750H1367B2273 - 25 -
1 on which it is based and send a copy thereof to each of the
2 parties in dispute.
3 Section 906. Appeals.--Decision by the State Board of
4 Medical Education and Licensure, or the State Board of <--
5 Osteopathic Examiners OR THE STATE BOARD OF PODIATRY EXAMINERS <--
6 shall be conclusive and binding as to all questions of fact, but
7 any medical practitioner may, within 30 days from the date of
8 such decision appeal to the Commonwealth Court of Pennsylvania
9 alleging certain errors of law under the same terms and
10 conditions as cover appeals in actions involving State agencies.
11 Section 907. Fees.--(a) All fees, charges and fines
12 collected under the provisions of the act of July 20, 1974
13 (P.L.551, No.190), known as the "Medical Practice Act of 1974"
14 are hereby specifically appropriated for the exclusive use by
15 the State Board of Medical Education and Licensure in carrying
16 out the provisions of that THIS act. <--
17 (b) All fees, charges and fines collected under the
18 provisions of the act of March 19, 1909 (P.L.46, No.29),
19 entitled, as amended, "An act to regulate the practice of
20 osteopathy and surgery in the State of Pennsylvania; to provide
21 for the establishment of a State Board of Osteopathic Examiners;
22 to define the powers and duties of said Board of Osteopathic
23 Examiners; to provide for the examining and licensing of
24 osteopathic physicians and surgeons in this State; and to
25 provide penalties for the violation of this act," are hereby
26 specifically appropriated for the exclusive use by the State
27 Board of Osteopathic Examiners in carrying out the provisions of
28 that THIS act. <--
29 (C) ALL FEES, CHARGES AND FINES COLLECTED UNDER THE <--
30 PROVISIONS OF THE ACT OF MARCH 2, 1956 (P.L.1206, NO.375),
19750H1367B2273 - 26 -
1 ENTITLED, AS AMENDED, "AN ACT RELATING TO AND DEFINING THE
2 PRACTICE OF PODIATRY; CONFERRING POWERS AND IMPOSING DUTIES ON
3 THE STATE BOARD OF PODIATRY EXAMINERS AND THE DEPARTMENT OF
4 STATE; REQUIRING LICENSURE; PROVIDING FOR THE GRANTING,
5 CANCELLATION, SUSPENSION AND REVOCATION OF LICENSES; PRESERVING
6 THE RIGHTS OF EXISTING LICENSES; PROVIDING FOR THE PROMULGATION
7 OF RULES AND REGULATIONS; TRANSFER OF JURISDICTION AND RECORDS
8 TO THE BOARD; REGULATION OF SCHOOLS OF CHIROPODY AND PODIATRY;
9 RECIPROCITY; AND PROVIDING PENALTIES, AND REMEDIES," ARE HEREBY
10 SPECIFICALLY APPROPRIATED FOR THE EXCLUSIVE USE BY THE STATE
11 BOARD OF PODIATRY EXAMINERS IN CARRYING OUT THE PROVISIONS OF
12 THIS ACT.
13 ARTICLE X
14 General Provisions
15 Section 1001. There shall be no liability on the part of and
16 no cause of action for libel OR SLANDER shall arise against any <--
17 member insurer, the State Board of Medical Education and
18 Licensure, the State Board of Osteopathic Examiners, THE STATE <--
19 BOARD OF PODIATRY EXAMINERS the Regional Arbitration Panels, THE <--
20 ADMINISTRATOR or the commissioner or his representatives for any
21 action taken by any of them in the performance of their
22 respective powers and duties under this act.
23 Section 1002. Any termination of a professional liability
24 insurance policy by cancellation is not effective against the
25 insured covered thereby, unless notice of cancellation shall
26 have been given within 60 days after the issuance of such
27 contract of insurance against the insured covered thereunder and
28 no cancellation shall take effect unless a written notice
29 stating the reasons for the cancellation and the date and time
30 upon which termination becomes effective has been received by
19750H1367B2273 - 27 -
1 the administrator at his office. Mailing of such notice to the
2 administrator at his principal office address shall constitute
3 notice to the administrator.
4 Section 1003. The provisions of this act do not apply to
5 injuries or death from services rendered or which should have
6 been rendered by a health care provider which occurred before
7 the effective date of this act.
8 Section 1004. Every express contract between a patient and
9 health care provider in existence on the effective date of this
10 act, containing provisions inconsistent with the terms and
11 provisions of this act, remains unimpaired, binding and
12 effective as to all parties until the contract expires or is
13 rescinded by law or the mutual agreement of the parties.
14 Section 1005. Fines and Penalties.--(a) No health care
15 provider shall provide any health care or professional services
16 until such assessments as are levied by the administrator are
17 paid.
18 (b) Any health care provider licensed by the Commonwealth or
19 operating under a certificate of authority issued by the
20 Commonwealth who violates the provisions of subsection (a) shall
21 upon conviction in a summary proceeding be sentenced to pay a
22 fine of not less than $100 nor more than $1,000 per day for each
23 day of practice without the necessary receipts, WHILE IN <--
24 VIOLATION, and may be subject to a suspension of his license or
25 certificate of authority, or both.
26 Section 1006. Joint Committee.--There is hereby created a
27 committee to consist of the commissioner as chairman, the
28 Secretary of Health and two members of the Senate, one member of
29 each party, to be appointed by the President pro tempore and two
30 members of the House of Representatives, one member of each
19750H1367B2273 - 28 -
1 party, to be appointed by the Speaker of the House of
2 Representatives. The committee shall study the distribution of
3 professional liability insurance costs as among the various
4 classes of physicians and health care providers and shall report
5 its findings and recommendations to the General Assembly on or <--
6 before July 1, 1976 WITHIN ONE YEAR OF THE EFFECTIVE DATE OF <--
7 THIS ACT. The committee shall also study all phases and the
8 financial impact of the operations of the Medical Professional
9 Liability Catastrophe Loss Fund and shall report its findings
10 and recommendations to the General Assembly on or before July 1,
11 1977.
12 This committee shall also study actual or potential problems
13 of conflicts of interest which exist or may exist among members
14 of the arbitration panel with each other and with other persons
15 appearing before the arbitration panel or having their interests
16 represented before the arbitration panel. The committee shall
17 promulgate a proposed Code of Ethics with suggested legal
18 sanctions to deal with any violators of the Code of Ethics on or
19 before July 1, 1976.
20 If the General Assembly, after receiving the findings and <--
21 recommendations of the joint committee, has not enacted
22 legislation to remedy the problems of distribution of
23 professional liability insurance costs as among the various
24 physicians and health care providers by July 1, 1977 JANUARY 1, <--
25 1979, then thereafter no professional liability insurance shall
26 be issued, written or renewed that provides for different risk
27 classification categories among medical doctors and doctors of
28 osteopathy.
29 Section 1007. Repealer.--All acts and parts of acts are
30 repealed in so far as they are inconsistent with this act.
19750H1367B2273 - 29 -
1 Section 1008. Effective Date.--This act shall take effect in
2 90 days.
F2L37RLC/19750H1367B2273 - 30 -