1865-S2 AMH CODY BLAC 58

2SHB 1865 - H AMD 0314 ADOPTED 3-19-03

By Representative Cody

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that thousands of patients are injured each year in the United States as a result of medical errors, and that a more comprehensive approach than looking only at the fault of individual practitioners is needed to effectively reduce the incidence of medical errors in our health care system. Incentives should be available to encourage health care providers, facilities, and health carriers to engage in proven patient safety and medical error reduction efforts. Investments in proven strategies can reduce medical errors, and thereby potentially reduce the need for disciplinary actions against licensed health care professionals and facilities, and the frequency and severity of medical malpractice claims. By authorizing contributions to fund proven patient safety and medical error reduction strategies through a patient safety program, the legislature intends to positively influence the safety and quality of care provided in Washington state's health care system.

NEW SECTION. Sec. 2. A new section is added to chapter 7.70 RCW to read as follows:

An injured claimant who receives a settlement or judgment in any action for damages based upon injuries resulting from health care may contribute a portion of that settlement or judgment to the department of health for deposit into the patient safety account established in section 5 of this act for the patient safety activities authorized in section 3 of this act. Proceeds of the contributions will be distributed by the department of health in the form of grants, loans, or other appropriate arrangements to support strategies that have been proven to reduce medical errors and enhance patient safety.

NEW SECTION. Sec. 3. A new section is added to chapter 43.70 RCW to read as follows:

Proceeds from the contributions authorized in section 2 of this act shall be administered by the department of health, in consultation with established patient safety coalitions. Upon receipt of at least one hundred thousand dollars in contributions under section 2 of this act or grants or other funds under section 4 of this act, patient safety proceeds will be distributed in the form of grants, loans, or other appropriate arrangements to support strategies that have been proven to reduce medical errors and enhance patient safety. In developing criteria for the award of grants, loans, or other funding arrangements under this section, the department shall:

(1) Consult with established patient safety coalitions and health care workers engaged in direct patient care activities; and

(2) Rely heavily upon evidence-based practices that have been shown to improve patient safety and have been identified and recommended by governmental and private organizations, including but not limited to:

(a) The federal agency for health care quality and research;

(b) The federal institute of medicine;

(d) The national quality forum.

NEW SECTION. Sec. 4. A new section is added to chapter 43.70 RCW to read as follows:

The secretary may solicit and accept grants or other funds from public and private sources to support patient safety and medical error reduction efforts under this act. Any grants or funds received may be used to enhance these activities as long as program standards established by the secretary are maintained.

NEW SECTION. Sec. 5. A new section is added to chapter 43.70 RCW to read as follows:

The patient safety account is created in the custody of the state treasurer. All receipts from contributions authorized in section 2 of this act must be deposited into the account. Expenditures from the account may be used only for the purposes of this act. Only the secretary or the secretary's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION. Sec. 6. A new section is added to chapter 43.70 RCW to read as follows:

By December 1, 2006, the department shall report the following information to the governor and the health policy and fiscal committees of the legislature:

(1) The amount of contributions deposited to date in the patient safety account;

(2) The criteria for distribution of grants and loans under this act; and

(3) A description of the medical error reduction and patient safety grants and loans distributed to date, including their desired objectives, activities, timelines, and any available information on outcomes.

NEW SECTION. Sec. 7. A new section is added to chapter 43.131 RCW to read as follows:

The patient safety program shall be terminated December 31, 2008, as provided in section 8 of this act.

NEW SECTION. Sec. 8. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective December 31, 2009:

(1) Section 2 of this act;

(2) Section 3 of this act;

(3) Section 4 of this act;

(4) Section 5 of this act; and

(5) Section 6 of this act."

Correct the title.

EFFECT: Removes the one percent set aside placed on settlements and judgments from actions for injuries resulting from health care and replaces it with a voluntary contribution that plaintiffs may make to fund patient safety activities. Allows the Department of Health to distribute grants once at least $100,000 in contributions are collected in the patient safety account. Removes the delayed effective date of January 1, 2004.