H. B. 4603

 

         (By Delegates Ellington, Howell, Rowan,

         Ferns, Arvon, Pasdon, Staggers and Hamrick)

 

         [Introduced February 17, 2014; referred to the

         Committee on the Judiciary then Finance.]

 

 

A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §9-10-1, §9-10-2, §9-10-3, §9-10-4, §9-10-5, §9-10-6, §9-10-7, §9-10-8, §9-10-9, §9-10-10 and §9-10-11, all relating to establishing an alternative to medical malpractice litigation whereby patients are compensated for medical injuries; creating the Patient Injury Act; limiting rights and remedies; providing legislative findings and intent; defining terms; establishing the Patient Compensation System; establishing the Patient Compensation Board; providing for members of the board; providing for various committees; providing for members of those committees; establishing the Office of Medical Review; establishing compensation guidelines; providing for an independent medical review panel; providing for an executive director and other officials; providing for the filing of and disposition of applications; providing for review by an administrative law judge; providing for appellate review; providing for payment of administration expenses; requiring an annual report; providing funding; requiring administrative fees; creating the Patient Compensation System Trust Fund; and authorizing rule making.

Be it enacted by the Legislature of West Virginia:

    That the Code of West Virginia, 1931, as amended, be amended, by adding thereto a new article, designated §9-10-1, §9-10-2, §9-10-3, §9-10-4, §9-10-5, §9-10-6, §9-10-7, §9-10-8, §9-10-9, §9-10-10 and §9-10-11, all to read as follows:

ARTICLE 10. PATIENT INJURY ACT.

§9-10-1. Short title.

    This article shall be known and may be cited as the “Patient Injury Act.”

§9-10-2. Definitions.

    For the purposes of this article, the following words and terms are defined as:

    “Applicant” means a person who files an application under this article requesting the investigation of an alleged occurrence of a medical injury.

    “Application” means a request for investigation by the Patient Compensation System of an alleged occurrence of a medical injury.

    “Board” means the Patient Compensation Board as created in section five of this article.

    “Collateral source” means any payments made to the applicant, or made on his or her behalf, by or pursuant to:

    (A) The United States Social Security Act, any federal, state, or local income disability act, or any other public programs providing medical expenses, disability payments, or other similar benefits, except as prohibited by federal law.

    (B) Any health, sickness, or income disability insurance; automobile accident insurance that provides health benefits or income disability coverage; and any other similar insurance benefits, except life insurance benefits available to the applicant, whether purchased by the applicant or provided by others.

    (C) Any contract or agreement of any group, organization, partnership, or corporation to provide, pay for, or reimburse the costs of hospital, medical, dental, or other health care services.

    (D) Any contractual or voluntary wage continuation plan provided by employers or by any other system intended to provide wages during a period of disability.

    “Committee” means, as the context requires, the Medical Review Committee or the Compensation Committee.

    “Compensation schedule” means a schedule of damages for medical injuries.

    “Division” means the Division of Human Services.

    “Independent medical review panel” or “panel” means a multidisciplinary panel convened by the chief medical officer to review each application.

    “Medical injury” means a personal injury or wrongful death due to medical treatment, including a missed diagnosis, which would have been avoided:

    (A) For care provided by an individual provider, under the care of an experienced specialist provider practicing in the same field of care under the same or similar circumstances or, for a general practitioner provider, an experienced general practitioner provider practicing under the same circumstances; or

    (B) For care provided by a provider in a system of care, if rendered within an optimal system of care under the same or similar circumstances. A medical injury shall only include consideration of an alternate course of treatment if the harm could have been avoided through a different but equally effective manner with respect to the treatment of the underlying condition. In addition, a medical injury shall only include consideration of information that would have been known to an experienced specialist or readily available to an optimal system of care at the time of the medical treatment. For purposes of this definition, “medical injury” does not include an injury or wrongful death caused by a product defect in a drug, as defined in section one, article seven, chapter sixteen of this code, or a device, as defined in section eight of that article.

    “Office” means, as the context requires, the Office of Compensation, the Office of Medical Review or the Office of Quality Improvement, as created and delineated in this article.

    “Panelist” means a hospital administrator, a person licensed as a chiropractor, counselor, social worker, therapist, dentist, dental hygienist, dietician, nurse, nursing home administrator, occupational therapist, optometrist, physical therapist, acupuncturist, podiatrist, psychologist, pathologist, audiologist, physicians assistant or physician or any other person involved in the management of a health care facility deemed appropriate by the board.

    “Patient Compensation System” means the organization created pursuant to section five of this article.

    “Provider” means a hospital or other health care facility licensed in this state, which includes a nursing home or skilled nursing facility among others, or a person licensed as a pharmacist, chiropractor, counselor, social worker, therapist, dentist, dental hygienist, dietician, nurse, nursing home administrator, occupational therapist, optometrist, physical therapist, acupuncturist, podiatrist, psychologist, pathologist, audiologist, physicians assistant or physician. The term also includes any corporation, professional corporation, partnership, limited liability company, limited liability partnership, authority, or other entity comprised of such providers.

§9-10-3. Findings; intentions.

    (a)(1) The Legislature finds that the lack of legal representation, and thus compensation, for the vast majority of patients with legitimate injuries is creating an access to courts crisis.

    (2) The Legislature finds that seeking compensation through medical malpractice litigation is a costly and protracted process, such that legal counsel may only afford to finance a small number of legitimate claims.

    (3) The Legislature finds that even for patients who are able to obtain legal representation, the delay to obtain compensation is long, creating a significant hardship for patients and their caregivers who often need access to immediate care and compensation.

    (4) The Legislature finds that, because of continued exposure to liability, an overwhelming majority of physicians practice defensive medicine by ordering unnecessary tests and procedures, driving up the cost of health care for individuals covered by public and private health insurance coverage and exposing patients to unnecessary clinical risks.

    (5) The Legislature finds that a significant percentage of physicians are continuing to retire from practice as a result of the cost and risk of medical liability in this state.

    (6) The Legislature finds that recruiting physicians to West Virginia and ensuring that existing West Virginia physicians continue to practice in this state is an overwhelming public necessity.

    (b)(1) The Legislature intends to create an alternative to medical malpractice litigation whereby patients are fairly and expeditiously compensated for avoidable medical injuries. This alternative, as provided in this article, is intended to significantly reduce the practice of defensive medicine, thereby reducing health care costs, increasing the number of physicians practicing in this state, and providing patients fair and timely compensation without the expense and delay of the court system.

    (2) The Legislature intends that the definition of “medical injury” encompass a broader range of personal injuries as compared to a negligence standard, such that a greater number of applications qualify for compensation under this article as compared to claims filed under a negligence standard.

    (3) The Legislature intends that applications filed under this article do not constitute a claim for medical malpractice, and any action on such applications under this article does not constitute a judgment or adjudication for medical malpractice, and thus professional liability carriers are not obligated to report such applications or actions on such applications to the National Practitioner Data Bank of the United States Department of Health and Human Services.

    (4) The Legislature further intends that because the Patient Compensation System has the primary duty to determine the validity and compensation of each application, an insurer is not subject to a statutory or common law bad faith cause of action relating to an application filed under this article.

§9-10-4. Limitation of rights and remedies.

    (a) The rights and remedies granted by this article on account of a medical injury shall exclude all other rights and remedies of the applicant, his or her personal representative, parents, dependents, and the next of kin, at common law or as provided in general law against any provider directly involved in providing the medical treatment from which such injury or death occurred, arising out of or related to a medical negligence claim, whether in tort or in contract, with respect to such injury. Notwithstanding any other law, the provisions of this article shall apply exclusively to applications submitted under this article. An applicant whose injury is excluded from coverage under the article may file a claim for recovery of damages in accordance with the provisions of applicable law.

    (b) Nothing in this article may be construed to prohibit a self-insured provider or an insurer from providing an early offer of settlement in satisfaction of a medical injury. An individual who accepts a settlement offer may not file an application under this article for the same medical injury. In addition, if an application has been filed prior to the offer of settlement, the acceptance of the settlement offer by the applicant results in the withdrawal of the application.

§9-10-5. Patient Compensation System; board; members; meetings;             powers and duties; compensation; executive director;             other officials.

    (a) The Patient Compensation System is created and is administratively housed within the Department of Health and Human Resources. The Patient Compensation System is a separate budget entity that is responsible for its administrative functions and not subject to control, supervision, or direction by the division in any manner. The Patient Compensation System shall administer the provisions of this article.

    (b) The Patient Compensation Board is established to govern the Patient Compensation System.

    (1) The board shall be composed of eleven members who represent the medical, legal, patient, and business communities from diverse geographic areas throughout the state. All members of the board shall be appointed by, and serve at the pleasure of, the Governor. Three members shall be licensed physicians who actively practice medicine in this state. Two members shall be patient advocates. Two members shall be an executive in the business community. Two members shall be a hospital administrator. One member shall be a certified public accountant who actively practices in this state. One member shall be an attorney.

    (2) Each member shall be appointed for a four-year term. For the purpose of providing staggered terms, of the initial appointments, the first five members appointed by the Governor shall be appointed to two-year terms and the remaining six members shall be appointed to three-year terms. If a vacancy occurs on the board before the expiration of a term, the Governor shall appoint a successor to serve the unexpired portion of the term.

    (3) The board shall annually elect from its membership one member to serve as chair of the board and one member to serve as vice chair.

    (4) The first meeting of the board shall be held no later than August 1, 2015. Thereafter, the board shall meet at least quarterly upon the call of the chair. A majority of the board members constitutes a quorum. Meetings may be held by teleconference, web conference, or other electronic means.

    (5) Members of the board and the committees shall receive $50 for each day actually spent in attending meetings of the board, or of its committees, and shall also be reimbursed for actual and necessary expenses.

    (6) The board has the following powers and duties:

    (A) Ensuring the operation of the Patient Compensation System in accordance with applicable federal and state laws and regulations.

    (B) Entering into contracts as necessary to administer this article.

    (C) Employing an executive director and other staff as are necessary to perform the functions of the Patient Compensation System, except that the Governor shall appoint the initial executive director.

    (D) Approving the hiring of a chief compensation officer and chief medical officer, as recommended by the executive director.

    (E) Approving a schedule of compensation for medical injuries, as recommended by the Compensation Committee.

    (F) Approving medical review panelists as recommended by the Medical Review Committee.

    (G) Approving an annual budget.

    (H) Annually approving provider contribution amounts.

    (7) The executive director shall oversee the operation of the Patient Compensation System in accordance with this article. The following staff shall report directly to and serve at the pleasure of the executive director.

    (A) The advocacy director shall ensure that each applicant is provided high quality individual assistance throughout the process, from initial filing to disposition of the application. The advocacy director shall assist each applicant in determining whether to retain an attorney, which assistance shall include an explanation of possible fee arrangements and the benefits and disadvantages of retaining an attorney. If the applicant seeks to file an application without an attorney, the advocacy director shall assist the applicant in filing the application. In addition, the advocacy director shall regularly provide status reports to the applicant regarding his or her application.

    (B) The chief compensation officer shall manage the Office of Compensation. The chief compensation officer shall recommend to the Compensation Committee a compensation schedule for each type of injury. The chief compensation officer may not be a licensed physician or an attorney.

    (C) The chief financial officer shall be responsible for overseeing the financial operations of the Patient Compensation System, including the annual development of a budget.

    (D) The chief legal officer shall represent the Patient Compensation System in all contested applications, oversee the operation of the Patient Compensation System to ensure compliance with established procedures, and ensure adherence to all applicable federal and state laws and regulations.

    (E) The chief medical officer shall be a licensed physician who shall manage the Office of Medical Review. The chief medical officer shall recommend to the Medical Review Committee a qualified list of multidisciplinary panelists for independent medical review panels. In addition, the chief medical officer shall convene independent medical review panels as necessary to review applications.

    (F) The chief quality officer shall manage the Office of Quality Improvement.

    (c) The following offices are established within the Patient Compensation System:

    (1) The chief medical officer shall manage the Office of Medical Review. The Office of Medical Review shall evaluate and, as necessary, investigate all applications in accordance with this article. For the purpose of an investigation of an application, the office shall have the power to administer oaths, take depositions, issue subpoenas, compel the attendance of witnesses and the production of papers, documents, and other evidence and obtain patient records pursuant to the applicant's release of protected health information.

    (2) The chief compensation officer shall manage the Office of Compensation. The office shall allocate compensation for each application in accordance with the compensation schedule.

    (3) The chief quality officer shall manage the Office of Quality Improvement. The office shall regularly review applications data to conduct root cause analyses in order to develop and disseminate best practices based on such reviews. In addition, the office shall capture and record safety-related data obtained during an investigation conducted by the Office of Medical Review, including the cause of the medical injury, the contributing factors, and any interventions that may have prevented the injury.

    (d) The board shall create a Medical Review Committee and a Compensation Committee. The board may create additional committees as necessary to assist in the performance of its duties and responsibilities.

    (1) Each committee shall be composed of three board members chosen by a majority vote of the board.

    (A) The Medical Review Committee shall be composed of two physicians and a board member who is not an attorney. The board shall designate one of the physician committee members as chair of the committee.

    (B) The Compensation Committee shall be composed of a certified public accountant and two board members who are not physicians or attorneys. The certified public accountant shall serve as chair of the committee.

    (2) Members of each committee shall serve two-year terms, within their respective terms as board members. If a vacancy occurs on a committee, the board shall appoint a successor to serve the unexpired portion of the term. A committee member who is removed or resigns from the board shall be removed from the committee.

    (3) The board shall annually designate a chair of each committee in accordance with this subsection.

    (4) Each committee shall meet at least quarterly or at the specific direction of the board. Meetings may be held by teleconference, web conference, or other electronic means.

    (5)(A) The Medical Review Committee shall recommend to the board a comprehensive, multidisciplinary list of panelists who shall serve on the independent medical review panels as needed.

    (B) The Compensation Committee shall, in consultation with the chief compensation officer, recommend to the board:

    (i) A compensation schedule formulated such that the initial compensation schedule plus the initial amount of contributions by providers shall not exceed the prior fiscal year aggregate cost of medical malpractice as determined by an independent actuary at the request of the board. In addition, initial damage payments for each type of injury shall be no less than the average indemnity payment reported by the Physician Insurers Association of America or its successor organization for like injuries with like severity for the prior fiscal year. Thereafter, the Compensation Committee shall annually review the compensation schedule, and, if necessary, recommend a revised schedule, such that a projected increase in the upcoming fiscal year aggregate cost of medical malpractice, which shall include insured and self-insured providers, shall not exceed the percentage change from the prior year in the medical care component of the consumer price index for all urban consumers.

    (ii) Guidelines for the payment of compensation awards through periodic payments.

    (iii) Guidelines for the apportionment of compensation among multiple providers, which guidelines shall be based on the historical apportionment among multiple providers for like injuries with like severity.

    (e) The chief medical officer shall convene an independent medical review panel to evaluate whether an application constitutes a medical injury. Each panel shall be composed of an odd number of at least three panelists chosen from the list of panelists recommended by the Medical Review Committee and approved by the board, and shall be convened upon the call of the chief medical officer. Each panelist shall be paid a stipend as determined by the board for his or her service on the panel. In order to expedite the review of applications, the chief medical officer may, whenever practicable, group related applications together for consideration by a single panel.

    (f) A board member, panelist, or employee of the Patient Compensation System may not engage in any conduct that constitutes a conflict of interest. For purposes of this subsection, a “conflict of interest” means a situation in which the private interest of a board member, panelist, or employee could influence his or her judgment in the performance of his or her duties under this article. A board member, panelist, or employee shall immediately disclose in writing the presence of a conflict of interest when the board member, panelist, or employee knows or should have known that the factual circumstances surrounding a particular application constitutes or constituted a conflict of interest. A board member, panelist, or employee who violates this subsection is subject to disciplinary action as determined by the board. A conflict of interest includes, but is not limited to:

    (1) Any conduct that would lead a reasonable person having knowledge of all of the circumstances to conclude that a panelist or employee is biased against or in favor of an applicant.

    (2) Participation in any application in which the board member, panelist, or employee, or the parent, spouse, or child of a board member, panelist, or employee has a financial interest.

    (g) The board shall promulgate rules to implement the provisions of this article, which shall include rules addressing:

    (1) The application process, including forms necessary to collect relevant information from applicants.

    (2) Disciplinary procedures for a board member, panelist or employee who violates the conflicts of interest provisions of this section.

    (3) Stipends paid to panelists for their service on an independent medical review panel, which stipends may be scaled in accordance with the relative scarcity of the provider's specialty, if applicable.

    (4) Payment of compensation awards through periodic payments and the apportionment of compensation among multiple providers, as recommended by the Compensation Committee.

§9-10-6. Compensation for medical injuries; application.

    (a) In order to obtain compensation for a medical injury, a person, or his or her legal representative, shall file an application with the Patient Compensation System. The application shall include the following:

    (1) The name and address of the applicant or his or her representative and the basis of the representation.

    (2) The name and address of any provider who provided medical treatment allegedly resulting in the medical injury.

    (3) A brief statement of the facts and circumstances surrounding the personal injury or wrongful death that gave rise to the application.

    (4) An authorization for release to the Office of Medical Review all protected health information that is potentially relevant to the application.

    (5) Any other information that the applicant believes will be beneficial to the investigatory process, including the names of potential witnesses.

    (6) Documentation of any applicable private or governmental source of services or reimbursement relative to the personal injury or wrongful death.

    (b) If an application is not complete, the Patient Compensation System shall, within thirty days after the receipt of the initial application, notify the applicant in writing of any errors or omissions. An applicant shall have thirty days in which to correct the errors or omissions in the initial application.

    (c) An application shall be filed within the time frames specified for medical malpractice actions.

    (d) After the filing of an application, the applicant may supplement the initial application with additional information that the applicant believes may be beneficial in the resolution of the application.

    (e) Nothing in this article prohibits an applicant or provider from retaining an attorney for the purpose of representing the applicant or provider in the review and resolution of an application.

§9-10-7. Determination of medical injury; compensation; review.

    (a) Individuals with relevant clinical expertise in the Office of Medical Review shall, within ten days of the receipt of a completed application, determine whether the application, prima facie, constitutes a medical injury.

    (1) If the Office of Medical Review determines that the application, prima facie, constitutes a medical injury, the office shall immediately notify, by registered or certified mail, each provider named in the application and, for providers that are not self-insured, the insurer that provides coverage for the provider. The notification shall inform the provider that he or she may support the application to expedite the processing of the application. A provider shall have fifteen days from the receipt of notification of an application to support the application. If the provider supports the application, the Office of Medical Review shall review the application in accordance with subsection (b) of this section.

    (2) If the Office of Medical Review determines that the application does not, prima facie, constitute a medical injury, the office shall send a rejection letter to the applicant by registered or certified mail, which shall inform the applicant of his or her right of appeal. The applicant shall have fifteen days from the date of the receipt of the letter in which to appeal the determination of the office.

    (b) An application that is supported by a provider in accordance with subsection (a) of this section shall be reviewed by individuals with relevant clinical expertise in the Office of Medical Review within thirty days of the notification of the provider's support of the application, to validate the application. If Office of Medical Review finds that the application is valid, the Office of Compensation shall determine an award of compensation in accordance with subsection (d) of this section. If the Office of Medical Review finds that the application is not valid, the office shall immediately notify the applicant of the rejection of the application and, in the case of fraud, the office shall immediately notify relevant law-enforcement authorities.

    (c) If the Office of Medical Review determines that the application, prima facie, constitutes a medical injury, and the provider does not elect to support the application, the office shall complete a thorough investigation of the application within sixty days after the determination by the office. The investigation shall be conducted by a multidisciplinary team with relevant clinical expertise and shall include a thorough investigation of all available documentation, witnesses, and other information. Within fifteen days after the completion of the investigation, the chief medical officer shall allow the applicant and the provider to access records, statements, and other information obtained in the course of its investigation, in accordance with relevant state and federal laws. Within thirty days after the completion of the investigation, the chief medical officer shall convene an independent medical review panel to determine whether the application constitutes a medical injury.

    (d) The independent medical review panel shall have access to all redacted information obtained by the office in the course of its investigation of the application, and shall make a written determination within ten days after the convening of the panel, which written determination shall be immediately provided to the applicant and the provider. The standard of review shall be a preponderance of the evidence.

    (e)(1) If the independent medical review panel determines that the application constitutes a medical injury, the Office of Medical Review shall immediately notify the provider by registered or certified mail of the right to appeal the determination of the panel. The provider shall have fifteen days from the receipt of the letter in which to appeal the determination of the panel.

    (2) If the independent medical review panel determines that the application does not constitute a medical injury, the Office of Medical Review shall immediately notify the applicant by registered or certified mail of the right to appeal the determination of the panel. The applicant shall have fifteen days from the receipt of the letter to appeal the determination of the panel.

    (3) If the independent medical review panel finds that an application constitutes a medical injury pursuant to subsection (c) of this section, and all appeals of that finding have been exhausted by the provider, the Office of Compensation shall, within thirty days after either the finding of the panel or the exhaustion of all appeals of that finding, whichever occurs later, make a written determination of an award of compensation in accordance with the compensation schedule and the findings of the panel. The office shall notify the applicant and the provider by registered or certified mail of the amount of compensation, and shall additionally explain to the applicant the process to appeal the determination of the office. The applicant shall have fifteen days from the receipt of the letter to appeal the determination of the office.

    (f) Compensation for each application shall be offset by any past and future collateral source payments. In addition, compensation may be paid by periodic payments as determined by the Office of Compensation in accordance with the rules adopted by the board.

    (g) Within fifteen days after either the acceptance of compensation by the applicant or the conclusion of all appeals, the provider, or for a provider who has insurance coverage, the insurer, shall remit the compensation award to the Patient Compensation System, which shall immediately provide compensation to the applicant in accordance with the final compensation award. Beginning forty-five days after the acceptance of compensation by the applicant or the conclusion of all appeals, whichever occurs later, an unpaid award shall begin to accrue interest at the rate of eighteen percent per year. An applicant may petition the Circuit Court of Kanawha County for enforcement of an award under this article.

    (h) A physician who is the subject of an application under this article shall be found to have committed medical malpractice only upon a specific finding to that effect by the West Virginia Board of Medicine.

    (i) The Patient Compensation System shall provide the division with electronic access to applications in which a medical injury was determined to exist, where the provider represents an imminent risk of harm to the public. The division shall review such applications to determine whether any of the incidents that resulted in the application potentially involved conduct by the licensee that is subject to disciplinary action.

§9-10-8. Appeals.

    (a) An administrative law judge shall hear and determine appeals filed by applicants or providers and shall exercise the full power and authority granted to him or her, as necessary, to carry out the purposes of such section. The administrative law judge shall be limited in his or her review to determine whether the Office of Medical Review, the independent medical review panel, or Office of Compensation, as appropriate, has faithfully followed the requirements of this article and rules adopted hereunder in reviewing applications. If the administrative law judge determines that such requirements were not followed in reviewing an application, he or she shall require the chief medical officer to either reconvene the original panel or convene a new panel, or require the Office of Compensation to redetermine the compensation amount, in accordance with the determination of the administrative law judge.

    (b) A determination by an administrative law judge under this section regarding the faithful following of the requirements and rules under this article shall be conclusive and binding as to all questions of fact. Such determination with findings of fact and conclusions of law shall be sent to the applicant and provider in question. An applicant or provider may obtain judicial review of such determination.

    (c) Upon a written petition by either the applicant or the provider, an administrative law judge may grant, for good cause, an extension of any of the time periods specified in this article.

§9-10-9. Administration fees; system.

    (a) The board shall annually determine a contribution that shall be paid by each provider for the expense of the administration of this article. The contribution amount shall be determined by January 1 of each year, and shall be based on the anticipated expenses of the administration of this article for the next state fiscal year.

    (b) The contribution rate shall not exceed the following amounts:

    (1) For an individual holding a professional license, not specifically mentioned below, $100 per licensee.

    (2) For a hospital, $200 per bed. The contribution for the initial fiscal year shall be $100 per bed.

    (3) For an anesthesiology assistant or physician assistant or a certified registered nurse anesthetist certified under $250 per licensee.

    (4) For a physician, $600 per licensee. The contribution for the initial fiscal year shall be $500 per licensee.

    (5) For any other provider not otherwise described in this subsection, $2,500 per registrant or licensee.

    (c) The contribution determined under this section shall be payable by each provider on July 1 of the next state fiscal year. Each provider shall pay the contribution amount within thirty days from the date that notice is delivered to the provider. If any provider fails to pay the contribution determined under this section within thirty days, the board shall notify such provider by certified or registered mail that such provider's license shall be subject to revocation if the contribution is not paid within sixty days from the date of the original notice.

    (d) A provider who fails to pay the contribution amount determined under this section within sixty days from the date of the receipt of the original notice shall be subject to a licensure revocation action by the Department of Health and Human Service or the relevant regulatory board, as appropriate.

    (e) All amounts collected under the provisions of this section shall be paid into the trust fund established in section eleven of this article.

§9-10-10. Reports of the board.

    The board shall annually submit, beginning on October 1, 2015, a report that describes the filing and disposition of applications in the prior fiscal year. The report shall include, in the aggregate, the number of applications, the disposition of such applications, and compensation awarded. The report shall also provide recommendations, if any, regarding legislative changes that would improve the efficiency of the functions of the Patient Compensation System. The report shall be provided to the Governor, the President of the Senate and the Speaker of the House of Delegates.

§9-10-11. Patient Compensation System Trust Fund.

    (a) There is created in the State Treasury a special fund to be designated as the Patient Compensation System Trust Fund, which shall be used in the operation of the Patient Compensation System in the performance of the various functions and duties required of it under this article. The trust fund is established for the deposit of contributions required to be paid by providers pursuant to section nine of this article.

    (b) Any balance in the trust fund at the end of any fiscal year shall remain in the trust fund at the end of the year and shall be available for carrying out the purposes of the trust fund.

 

 

 

    NOTE: The purpose of this bill is to establish an alternative to medical malpractice litigation whereby patients are compensated for medical injuries. The bill creates the Patient Injury Act. The bill limits rights and remedies. The bill provides legislative findings and intent. The bill defines terms. The bill establishes the Patient Compensation System. The bill establishes the Patient Compensation Board. The bill provides for members of the board. The bill provides for various committees. The bill provides for members of those committees. The bill establishes the Office of Medical Review. The bill establishes compensation guidelines. The bill provides for an independent medical review panel. The bill provides for an executive director and other officials. The bill provides for the filing of and disposition of applications. The bill provides for review by an administrative law judge. The bill provides for appellate review. The bill provides for payment of administration expenses. The bill requires an annual report. The bill provides funding. The bill requires administrative fees. The bill creates the Patient Compensation System Trust Fund. The bill authorizes rulemaking.

    This article is new; therefore, it has been completely underscored.