SENATE BILL No. 1138

 

 

May 23, 2012, Introduced by Senators HOPGOOD and WARREN and referred to the Committee on Health Policy.

 

 

 

     A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 16241 and 20175 (MCL 333.16241 and 333.20175),

 

section 16241 as amended by 1993 PA 87 and section 20175 as amended

 

by 2006 PA 481.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 16241. (1) After administrative disciplinary action is

 

final, the department of commerce shall publish a list of the names

 

and addresses of disciplined individuals. The department of

 

commerce shall indicate on the list that a final administrative

 

disciplinary action is subject to judicial review. The department

 

of commerce shall report disciplinary action to the department of

 

public community health, the commissioner of insurance, the office

 

of financial and insurance services, the state and federal agencies

 

responsible for fiscal administration of federal health care


 

programs, and the appropriate professional association.

 

     (2) Once each calendar year, the department of commerce shall

 

transmit to the library of Michigan sufficient copies of a

 

compilation of the lists required under subsection (1) for the

 

immediately preceding 3 calendar years. The library of Michigan

 

shall distribute the compilation to each depository library in the

 

state. The department of commerce also shall also transmit the

 

compilation to each county clerk in the state once each calendar

 

year.

 

     (3) On or before April 1 of each year, the department shall

 

make all of the following information available to the public on

 

the department's website:

 

     (a) The number of complaints filed against physicians licensed

 

under parts 170 and 175 in the immediately preceding calendar year.

 

     (b) The number of investigations of licensees the department

 

conducted in the immediately preceding calendar year.

 

     (c) The number of disciplinary hearings conducted in the

 

immediately preceding calendar year.

 

     (d) The number of reports of disciplinary action made by the

 

department under subsection (1) in the immediately preceding

 

calendar year.

 

     (e) The types of actions, including license reinstatements,

 

taken by disciplinary subcommittees in the immediately preceding

 

calendar year.

 

     (4) (3) The department of public community health shall report

 

the disciplinary actions to appropriate licensed health facilities

 

and agencies. The commissioner of insurance the office of financial


 

and insurance services shall report the disciplinary actions

 

received from the department of commerce to insurance carriers

 

providing professional liability insurance.

 

     (5) (4) In case of a summary suspension of If the department

 

summarily suspends a license under section 16233(5), the department

 

of commerce shall report the name and address of the individual

 

whose license has been suspended to the department of public

 

community health, the commissioner of insurance, the office of

 

financial and insurance services, the state and federal agencies

 

responsible for fiscal administration of federal health care

 

programs, and the appropriate professional association.

 

     (6) (5) A licensee or registrant whose license or registration

 

is revoked or suspended under this article shall give notice of the

 

revocation or suspension to each patient who contacts the licensee

 

or registrant for professional services during the term of the

 

revocation or suspension. The notice required under this subsection

 

may be given orally and shall be given at the time of contact.

 

     (7) (6) A licensee or registrant whose license or registration

 

is revoked or is suspended for more than 60 days under this article

 

shall notify in writing each patient or client to whom the licensee

 

or registrant rendered professional services in the licensee's or

 

registrant's private practice during the 120 days immediately

 

preceding the date of the final order imposing the revocation or

 

suspension and to each individual who is already scheduled for

 

professional services during the first 120 days after the date of

 

the final order imposing the revocation or suspension.

 

     (8) The A notice required under subsection (7) shall be on a


 

form provided by the licensee's or registrant's board or task force

 

and shall state, at a minimum, the include at least all of the

 

following:

 

     (a) The name, address, and license or registration number of

 

the licensee or registrant. , the

 

     (b) The fact that his or her the licensee's or registrant's

 

license or registration has been was revoked or suspended. , the

 

     (c) The effective date of the revocation or suspension. , and

 

the

 

     (d) The term of the revocation or suspension.

 

     (9) Each board or task force shall develop a notice form that

 

meets at least the minimum requirements of this subsection (8). The

 

     (10) A licensee or registrant shall send the a notice required

 

under subsection (7) to each patient or client to whom the licensee

 

or registrant rendered professional services in the licensee's or

 

registrant's private practice during the 120 days immediately

 

preceding the date of the a final order imposing the revocation or

 

suspension within 30 days after the date of the final order

 

imposing the revocation or suspension. and The licensee or

 

registrant shall simultaneously transmit a copy of the notice to

 

the department. The

 

     (11) A licensee or registrant orally shall shall orally notify

 

each individual who contacts the licensee or registrant for

 

professional services during the first 120 days after the date of

 

the a final order imposing the revocation or suspension. The

 

     (12) A licensee or registrant shall also provide a copy of the

 

a notice required under subsection (7) within 10 days after the


 

date of the final order imposing the revocation or suspension to

 

his or her employer, if any, and to each hospital, if any, in which

 

the licensee or registrant is admitted to practice.

 

     (13) (7) A licensee or registrant who is reprimanded, fined,

 

placed on probation, or ordered to pay restitution under this

 

article or an applicant whose application for licensure or

 

registration is denied under this article shall notify his or her

 

employer, if any, and each hospital, if any, in which he or she is

 

admitted to practice, in the same manner as provided for notice of

 

revocation or suspension to an employer or hospital under

 

subsection (6) (12), within 10 days after the date of the final

 

order imposing the sanction.

 

     (14) (8) The department of commerce annually shall annually

 

report to the legislature and to each board and task force on

 

disciplinary actions taken under this article and article 7. The

 

report shall contain, at a minimum, all of the following

 

information:

 

     (a) Investigations conducted, complaints issued, and

 

settlements reached by the department, of commerce, separated out

 

reported by type of complaint and health profession.

 

     (b) Investigations and complaints closed or dismissed.

 

     (c) Actions taken by each disciplinary subcommittee, separated

 

out reported by type of complaint, health profession, and final

 

order issued.

 

     (d) Recommendations by boards and task forces.

 

     (e) The number of extensions and delays granted by the

 

department that were in excess of the time limits required under


 

this article for each phase of the disciplinary process, and the

 

types of cases for which the extensions and delays were granted.

 

     (9) Within 2 years after the effective date of the amendatory

 

act that added this subsection, the department of commerce shall

 

submit a public report to the legislature on the effectiveness of

 

the amendatory act that added this subsection. The report shall

 

include a review and evaluation of the disciplinary process and the

 

reporting requirements of this article and article 17 and

 

recommended administrative or statutory changes, if any.

 

     Sec. 20175. (1) A health facility or agency shall keep and

 

maintain a record for each patient, including a full and complete

 

record of tests and examinations performed, observations made,

 

treatments provided, and in the case of a hospital, the purpose of

 

hospitalization. Unless a longer retention period is otherwise

 

required under federal or state laws or regulations or by generally

 

accepted standards of medical practice, a health facility or agency

 

shall keep and retain each record for a minimum of 7 years from the

 

date of service to which the record pertains. A health facility or

 

agency shall maintain the records in such a manner as to protect

 

their integrity, to ensure their confidentiality and proper use,

 

and to ensure their accessibility and availability to each patient

 

or his or her authorized representative as required by law. A

 

health facility or agency may destroy a record that is less than 7

 

years old only if both of the following are satisfied:

 

     (a) The health facility or agency sends a written notice to

 

the patient at the last known address of that patient informing the

 

patient that the record is about to be destroyed, offering the


 

patient the opportunity to request a copy of that record, and

 

requesting the patient's written authorization to destroy the

 

record.

 

     (b) The health facility or agency receives written

 

authorization from the patient or his or her authorized

 

representative agreeing to the destruction of the record. Except as

 

otherwise provided under federal or state laws and regulations,

 

records required to be maintained under this subsection may be

 

destroyed or otherwise disposed of after being maintained for 7

 

years. If records maintained in accordance with this section are

 

subsequently destroyed or otherwise disposed of, those records

 

shall be shredded, incinerated, electronically deleted, or

 

otherwise disposed of in a manner that ensures continued

 

confidentiality of the patient's health care information and any

 

other personal information relating to the patient. If records are

 

destroyed or otherwise disposed of as provided under this

 

subsection, the department may take action including, but not

 

limited to, contracting for or making other arrangements to ensure

 

that those records and any other confidential identifying

 

information related to the patient are properly destroyed or

 

disposed of to protect the confidentiality of patient's health care

 

information and any other personal information relating to the

 

patient. Before the department takes action in accordance with

 

under this subsection, the department, if able to identify the

 

health facility or agency responsible for the improper destruction

 

or disposal of the medical records at issue, shall send a written

 

notice to that health facility or agency at the last known address


 

on file with the department and provide the health facility or

 

agency with an opportunity to properly destroy or dispose of those

 

medical records as required under this subsection unless a delay in

 

the proper destruction or disposal may compromise the patient's

 

confidentiality. The department may assess the health facility or

 

agency with the costs incurred by the department to enforce this

 

subsection. In addition to the sanctions set forth described in

 

section 20165, a hospital that fails to comply with this subsection

 

is subject to an administrative fine of $10,000.00.

 

     (2) A hospital shall take precautions to assure that the

 

records required by under subsection (1) are not wrongfully altered

 

or destroyed. A hospital that fails to comply with this subsection

 

is subject to an administrative fine of $10,000.00.

 

     (3) Unless otherwise provided by law, the licensing and

 

certification records required by under this article are public

 

records.

 

     (4) Departmental officers and employees shall respect the

 

confidentiality of patient clinical records and shall not divulge

 

or disclose the contents of records in a manner that identifies an

 

individual except pursuant to court order or as otherwise

 

authorized by law.

 

     (5) A health facility or agency that employs, contracts with,

 

or grants privileges to a health professional licensed or

 

registered under article 15 shall report the following to the

 

department not more than 30 days after it occurs:

 

     (a) Disciplinary action taken by the health facility or agency

 

against a health professional licensed or registered under article


 

15 based on the licensee's or registrant's professional competence,

 

disciplinary action that results in a change of employment status,

 

or disciplinary action based on conduct that adversely affects the

 

licensee's or registrant's clinical privileges for a period of more

 

than 15 days. As used in this subdivision, "adversely affects"

 

means the reduction, restriction, suspension, revocation, denial,

 

or failure to renew the clinical privileges of a licensee or

 

registrant by a health facility or agency.

 

     (b) Restriction or acceptance of the surrender of the clinical

 

privileges of a licensee or registrant under either of the

 

following circumstances:

 

     (i) The licensee or registrant is under investigation by the

 

health facility or agency.

 

     (ii) There is an agreement in which the health facility or

 

agency agrees not to conduct an investigation into the licensee's

 

or registrant's alleged professional incompetence or improper

 

professional conduct.

 

     (c) A case in which a health professional resigns or

 

terminates a contract or whose The acceptance of a health

 

professional's resignation or termination or nonrenewal of his or

 

her contract is not renewed instead of the health facility taking

 

disciplinary action against the health professional.

 

     (6) On or before April 1 of each year, a health facility or

 

agency shall make all of the following information available on an

 

internet website accessible to the general public:

 

     (a) The number of investigations conducted by the health

 

facility or agency in the immediately preceding calendar year for


 

the purpose of determining whether to take disciplinary action

 

against a health professional licensed or registered under article

 

15 that the health facility or agency employed, contracted with, or

 

granted privileges to in the immediately preceding calendar year.

 

     (b) The number of investigations described in subdivision (a)

 

that adversely affected any of the following:

 

     (i) The health professional's employment status.

 

     (ii) The health professional's clinical privileges.

 

     (7) (6) Upon request by another health facility or agency

 

seeking a reference for purposes of changing or granting staff

 

privileges, credentials, or employment, a health facility or agency

 

that employs, contracts with, or grants privileges to health

 

professionals licensed or registered under article 15 shall notify

 

the requesting health facility or agency of any disciplinary or

 

other action reportable under subsection (5) that it has taken

 

against a health professional licensed or registered under article

 

15 and employed by, under contract to, or granted privileges by the

 

health facility or agency.

 

     (8) (7) For the purpose of reporting disciplinary actions

 

under this section, subsection (5), a health facility or agency

 

shall include only the following in the information provided:

 

     (a) The name of the licensee or registrant against whom

 

disciplinary action has been taken.

 

     (b) A description of the disciplinary action taken.

 

     (c) The specific grounds for the disciplinary action taken.

 

     (d) The date of the incident that is the basis for the

 

disciplinary action.


 

     (9) (8) The records, data, and knowledge collected for or by

 

individuals or committees assigned a professional review function

 

in a health facility or agency, or an institution of higher

 

education in this state that has colleges of osteopathic and human

 

medicine, are confidential, shall be used only for the purposes

 

provided in this article, are not public records, and are not

 

subject to court subpoena.