S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  1117

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sen. MAZIARZ -- read twice and ordered printed, and when
  printed to be committed to the Committee on Health

AN ACT to amend the public health law and  the  state  finance  law,  in
  relation to establishing the medical harm disclosure act

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known and may  be  cited  as
the "medical harm disclosure act".
  S  2. Article 29-D of the public health law is amended by adding a new
title 1-A to read as follows:
                                 TITLE 1-A
                       MEDICAL HARM DISCLOSURE ACT
SECTION 2997-E. DEFINITIONS.
        2997-F. HOSPITAL REQUIREMENTS.
        2997-G. MEDICAL HARM DISCLOSURE ADVISORY COMMITTEE.
        2997-H. METHODOLOGIES FOR COLLECTING, ANALYZING  AND  VALIDATING
                  DATA.
        2997-I. PUBLIC REPORTS.
        2997-J. PRIVACY.
        2997-K. PROTECTION FOR TAKING ACTION.
        2997-L. PATIENT SAFETY TRUST FUND.
        2997-M. DEPARTMENT ACTIONS AND PENALTIES.
        2997-N. OVERSIGHT INFORMATION.
        2997-O. PUBLIC AWARENESS.
  S 2997-E. DEFINITIONS. FOR PURPOSES OF THIS TITLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "HOSPITAL"  SHALL  MEAN  A HOSPITAL AS DEFINED PURSUANT TO ARTICLE
TWENTY-EIGHT OF THIS CHAPTER.
  2. "MEDICAL HARM EVENT" SHALL MEAN HARM TO A PATIENT AS  A  RESULT  OF
MEDICAL CARE OR IN A HEALTH CARE SETTING. IT MAY INCLUDE, BUT SHOULD NOT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD02299-01-3

S. 1117                             2

BE  LIMITED  TO, THE NATIONAL QUALITY FORUM'S LIST OF SERIOUS REPORTABLE
EVENTS, AND SHALL INCLUDE THE FOLLOWING CATEGORIES OF EVENTS:
  (A)  SURGICAL  AND  RELATED  ANESTHESIA  EVENTS  INCLUDING  UNEXPECTED
COMPLICATIONS AND DEATHS,  SURGERY  PERFORMED  ON  A  WRONG  BODY  PART,
SURGERY  PERFORMED  ON  THE  WRONG PATIENT, THE WRONG SURGICAL PROCEDURE
PERFORMED ON A PATIENT, AND RETENTION OF A FOREIGN OBJECT IN  A  PATIENT
AFTER  SURGERY  OR  OTHER  PROCEDURE,  EXCLUDING  OBJECTS  INTENTIONALLY
IMPLANTED AS PART OF A PLANNED INTERVENTION AND OBJECTS PRESENT PRIOR TO
SURGERY THAT ARE INTENTIONALLY RETAINED.
  (B) MEDICATION EVENTS RELATED TO PROFESSIONAL PRACTICE, OR HEALTH CARE
PRODUCTS, PROCEDURES,  AND  SYSTEMS,  INCLUDING,  BUT  NOT  LIMITED  TO,
PRESCRIBING,  PRESCRIPTION ORDER COMMUNICATIONS, PRODUCT LABELING, PACK-
AGING AND NOMENCLATURE, COMPOUNDING, DISPENSING, DISTRIBUTION,  ADMINIS-
TRATION, EDUCATION, MONITORING, AND USE.
  (C)  PRODUCT  OR  DEVICE  EVENTS  RELATED  TO THE USE OR FUNCTION OF A
DEVICE IN PATIENT CARE IN WHICH THE DEVICE IS USED FOR  FUNCTIONS  OTHER
THAN  AS  INTENDED,  INCLUDING,  BUT NOT LIMITED TO, CATHETERS, INFUSION
PUMPS, OR VENTILATORS.
  (D) CARE MANAGEMENT EVENTS INCLUDING, BUT NOT LIMITED TO, STAGE 3 OR 4
PRESSURE ULCERS ACQUIRED AFTER ADMISSION TO A HEALTH  FACILITY,  FAILURE
TO RESCUE, IV INJURIES, AND MATERNAL DEATH OR SERIOUS DISABILITY ASSOCI-
ATED  WITH  LABOR  OR  DELIVERY,  INCLUDING  EVENTS  THAT  OCCUR  WITHIN
FORTY-TWO DAYS POST-DELIVERY.
  (E) ENVIRONMENTAL DEATHS INCLUDING, BUT  NOT  LIMITED  TO,  UNINTENDED
ELECTRIC  SHOCK,  DELIVERY  OF  THE  WRONG  GAS  OR  CONTAMINATED  TOXIC
SUBSTANCE, BURNS INCURRED FROM ANY SOURCE, PATIENT FALLS, AND HARM ASSO-
CIATED WITH THE USE OF RESTRAINTS OR BEDRAILS.
  (F) DEATH OF A PREVIOUSLY  HEALTHY  PERSON  WHILE  UNDERGOING  MEDICAL
CARE.
  S  2997-F.  HOSPITAL  REQUIREMENTS.  1.  IN  ADDITION TO THE REPORTING
REQUIREMENTS SET FORTH IN SECTION TWENTY-EIGHT HUNDRED  FIVE-L  OF  THIS
CHAPTER,  A HOSPITAL SHALL REPORT A MEDICAL HARM EVENT TO THE DEPARTMENT
NOT LATER THAN FIVE DAYS AFTER THE EVENT HAS BEEN DETECTED, OR, IF  THAT
EVENT IS AN ONGOING URGENT OR EMERGENT THREAT TO THE WELFARE, HEALTH, OR
SAFETY  OF  PATIENTS, PERSONNEL, OR VISITORS, NOT LATER THAN TWENTY-FOUR
HOURS AFTER THE ADVERSE EVENT HAS BEEN DETECTED. THE  REPORTS  SHALL  BE
MADE ON A FORM PRESCRIBED BY THE DEPARTMENT.
  2. THE REPORT SHALL INDICATE THE LEVEL OF MEDICAL HARM TO THE PATIENT,
SUCH AS WHETHER IT RESULTED IN SERIOUS INJURY OR DEATH, USING THE FORMAT
DEVELOPED BY THE DEPARTMENT.
  3.  ON  A  QUARTERLY BASIS, EACH HOSPITAL THAT HAS HAD NO MEDICAL HARM
EVENTS TO REPORT DURING THAT QUARTER SHALL  AFFIRMATIVELY  DECLARE  THIS
FACT TO THE DEPARTMENT, USING A FORM DEVELOPED BY THE DEPARTMENT.
  4. EACH HOSPITAL SHALL CREATE FACILITY-WIDE PATIENT SAFETY PROGRAMS TO
ROUTINELY  REVIEW PATIENT RECORDS FOR MEDICAL HARM, ANALYZE THESE EVENTS
TO DETERMINE IF THEY WERE PREVENTABLE AND IMPLEMENT CHANGES  TO  PREVENT
SIMILAR HARMFUL EVENTS. EACH HOSPITAL SHALL PROVIDE AN ANNUAL SUMMARY OF
ITS PATIENT SAFETY PROGRAM TO THE DEPARTMENT.
  5.  EACH  HOSPITAL SHALL INFORM THE PATIENT, THE PARTY RESPONSIBLE FOR
THE PATIENT, OR AN ADULT MEMBER OF THE  IMMEDIATE  FAMILY  IN  CASES  OF
DEATH  OR  SERIOUS  BODILY INJURY, OF THE MEDICAL HARM EVENT BY THE TIME
THE REPORT IS MADE TO THE DEPARTMENT.
  6. EACH HOSPITAL SHALL  INTERVIEW  PATIENTS,  FAMILY  MEMBERS,  AND/OR
PARTIES  RESPONSIBLE FOR THE PATIENT ABOUT MEDICAL HARM EVENTS AND DOCU-
MENT A DETAILED SUMMARY OF  THAT  INTERVIEW  IN  THE  PATIENT'S  MEDICAL
RECORD.

S. 1117                             3

  7.  IF  THE  MEDICAL HARM EVENT CONTRIBUTED TO THE DEATH OF A PATIENT,
THE HOSPITAL SHALL INCLUDE THAT EVENT AS A  CONTRIBUTING  CAUSE  ON  THE
PATIENT'S DEATH CERTIFICATE.
  8.  IF THE HOSPITAL IS A DIVISION OR SUBSIDIARY OF ANOTHER ENTITY THAT
OWNS OR OPERATES MULTIPLE HOSPITALS OR RELATED ORGANIZATIONS,  A  REPORT
SHALL  BE  MADE  FOR EACH SPECIFIC DIVISION OR SUBSIDIARY AND NOT AGGRE-
GATELY FOR MULTIPLE HOSPITALS.
  9. NOTHING IN THIS SECTION SHALL BE INTERPRETED TO CHANGE OR OTHERWISE
AFFECT HOSPITAL REPORTING REQUIREMENTS REGARDING REPORTABLE DISEASES  OR
UNUSUAL OCCURRENCES, AS PROVIDED ELSEWHERE IN THIS CHAPTER.
  S  2997-G.  MEDICAL HARM DISCLOSURE ADVISORY COMMITTEE. 1. THE COMMIS-
SIONER SHALL APPOINT  A  MEDICAL  HARM  DISCLOSURE  ADVISORY  COMMITTEE,
INCLUDING REPRESENTATIVES FROM PUBLIC AND PRIVATE HOSPITALS, DIRECT CARE
NURSING  STAFF,  PHYSICIANS,  EPIDEMIOLOGISTS  WITH EXPERTISE IN PATIENT
SAFETY, ACADEMIC RESEARCHERS, CONSUMER ORGANIZATIONS,  HEALTH  INSURERS,
HEALTH  MAINTENANCE  ORGANIZATIONS,  ORGANIZED  LABOR, AND PURCHASERS OF
HEALTH INSURANCE, SUCH AS EMPLOYERS. THE ADVISORY COMMITTEE SHALL HAVE A
MAJORITY OF MEMBERS REPRESENTING INTERESTS OTHER THAN HOSPITALS.
  2. THE MEDICAL HARM DISCLOSURE ADVISORY  COMMITTEE  SHALL  ASSIST  THE
DEPARTMENT IN THE DEVELOPMENT OF ALL ASPECTS OF THE DEPARTMENT'S METHOD-
OLOGY   FOR   COLLECTING,  ANALYZING,  AND  DISCLOSING  THE  INFORMATION
COLLECTED UNDER THIS TITLE, INCLUDING  COLLECTION  METHODS,  FORMATTING,
EVALUATION  OF  METHODS  USED  AND THE METHODS AND MEANS FOR RELEASE AND
DISSEMINATION.
  3. MEETINGS OF THE ADVISORY COMMITTEE SHALL  BE  OPEN  TO  THE  PUBLIC
PURSUANT TO ARTICLE SEVEN OF THE PUBLIC OFFICERS LAW.
  S 2997-H. METHODOLOGIES FOR COLLECTING, ANALYZING AND VALIDATING DATA.
1.  THE DEPARTMENT SHALL, WITH THE ADVICE OF THE MEDICAL HARM DISCLOSURE
ADVISORY COMMITTEE CREATED IN SECTION TWENTY-NINE HUNDRED NINETY-SEVEN-G
OF THIS TITLE, DEVELOP GUIDELINES FOR HOSPITALS IN  IDENTIFYING  MEDICAL
HARM EVENTS.
  2.  THE  DEPARTMENT  SHALL  CREATE  STANDARDIZED REPORTING FORMATS FOR
HOSPITALS TO USE TO COMPLY WITH ALL PROVISIONS OF THIS TITLE.
  3. IN DEVELOPING THE METHODOLOGY FOR COLLECTING THE  DATA  ON  MEDICAL
HARM  EVENTS,  THE  DEPARTMENT  AND THE MEDICAL HARM DISCLOSURE ADVISORY
COMMITTEE SHALL USE THE "COMMON FORMATS" FORMS DEVELOPED BY  THE  AGENCY
FOR HEALTHCARE RESEARCH AND QUALITY OR A SIMILAR STANDARDIZED COLLECTION
METHOD.
  4.  IN  DEVELOPING THE METHODOLOGY FOR ANALYZING THE DATA, THE DEPART-
MENT SHALL INCLUDE A STANDARDIZED METHOD OF CATEGORIZING  THE  LEVEL  OF
HARM EXPERIENCED BY THE PATIENT, SUCH AS THE NATIONAL COORDINATING COUN-
CIL  FOR MEDICATION ERRORS REPORTING AND PREVENTION INDEX FOR CATEGORIZ-
ING ERRORS.
  5. THE DEPARTMENT SHALL AT  LEAST  QUARTERLY  CHECK  THE  ACCURACY  OF
INFORMATION  REPORTED  BY  HOSPITALS  UNDER  THIS TITLE BY COMPARING THE
INFORMATION WITH OTHER AVAILABLE DATA SUCH AS PATIENT SAFETY  INDICATORS
FROM  HOSPITAL PATIENT DISCHARGE DATA, COMPLAINTS FILED WITH THE LICENS-
ING DIVISION, DEATH CERTIFICATES, INSPECTION  AND  SURVEY  REPORTS,  AND
MEDICAL  MALPRACTICE INFORMATION.  THE DEPARTMENT SHALL ANNUALLY CONDUCT
RANDOM REVIEWS OF HOSPITAL MEDICAL RECORDS.
  6. THE DATA COLLECTION, ANALYSIS AND VALIDATION METHODOLOGIES SHALL BE
DISCLOSED TO THE PUBLIC.
  7. EVERY THREE YEARS, THE DEPARTMENT SHALL HAVE AN  INDEPENDENT  AUDIT
CONDUCTED  BY  A STATE UNIVERSITY OF NEW YORK ENTITY NOT AFFILIATED WITH
ANY HOSPITAL REQUIRED TO REPORT UNDER THIS TITLE. SUCH AUDIT SHALL:

S. 1117                             4

  (A) ASSESS THE ACCURACY OF REPORTING BY HOSPITALS, ESPECIALLY  SEEKING
TO IDENTIFY UNDERREPORTING;
  (B)  BE FUNDED BY THE PATIENT SAFETY TRUST FUND ESTABLISHED IN SECTION
NINETY-FIVE-H OF THE STATE FINANCE LAW; AND
  (C) BE AVAILABLE TO THE PUBLIC ON THE DEPARTMENT'S WEBSITE WITHIN  ONE
MONTH OF RECEIVING THE FINAL REPORT.
  8.  THE DEPARTMENT SHALL ADOPT REGULATIONS TO CARRY OUT THE PROVISIONS
OF THIS TITLE.
  S 2997-I. PUBLIC  REPORTS.  1.  EACH  QUARTER,  THE  DEPARTMENT  SHALL
PUBLISH DETAILS OF THE FINES ASSESSED TO HOSPITALS FOR FAILURE TO REPORT
MEDICAL  HARM EVENTS UNDER SECTION TWENTY-NINE HUNDRED NINETY-SEVEN-M OF
THIS TITLE, AND SHALL ISSUE A NEWS RELEASE ABOUT THAT PUBLICATION.
  2. THE DEPARTMENT SHALL ANNUALLY SUBMIT A REPORT  TO  THE  LEGISLATURE
DETAILING  MEDICAL  HARM  EVENTS  REPORTED  AT EACH HOSPITAL REQUIRED TO
REPORT UNDER THIS TITLE. THE REPORT MAY INCLUDE POLICY  RECOMMENDATIONS,
AS APPROPRIATE. SUCH REPORT SHALL:
  (A)  BE  PUBLISHED  ON THE DEPARTMENT'S WEBSITE AT THE SAME TIME IT IS
SUBMITTED TO THE LEGISLATURE;
  (B) INCLUDE HOSPITAL-SPECIFIC INFORMATION ON THE NUMBER  AND  TYPE  OF
MEDICAL  HARM  EVENTS  REPORTED,  THE  LEVEL  OF HARM TO PATIENTS, FINES
ASSESSED AND ENFORCEMENT ACTIONS TAKEN, AND THE QUARTERLY AFFIRMATION BY
HOSPITALS IN WHICH NO MEDICAL HARM EVENTS HAVE OCCURRED;
  (C) PROVIDE INFORMATION IN A MANNER THAT STRATIFIES THE DATA BASED  ON
CHARACTERISTICS  OF  THE HOSPITALS, SUCH AS NUMBER OF PATIENT ADMISSIONS
AND PATIENT DAYS IN EACH HOSPITAL; AND
  (D) CONTAIN TEXT WRITTEN IN PLAIN LANGUAGE THAT INCLUDES A  DISCUSSION
OF  FINDINGS,  CONCLUSIONS,  AND  TRENDS  CONCERNING THE OVERALL PATIENT
SAFETY IN THE STATE, INCLUDING A COMPARISON  TO  PRIOR  YEARS,  AND  THE
METHODS  THE  DEPARTMENT  USED  TO  CHECK  FOR  THE ACCURACY OF HOSPITAL
REPORTS.
  3. EACH QUARTER,  THE  DEPARTMENT  SHALL  MAKE  INFORMATION  REGARDING
OUTCOMES  OF  HOSPITAL INSPECTIONS AND INVESTIGATIONS CONDUCTED PURSUANT
TO ITS REGULATORY DUTIES UNDER THIS CHAPTER, READILY ACCESSIBLE  TO  THE
PUBLIC ON THE DEPARTMENT WEBSITE.
  4.  NO  HOSPITAL  REPORT  OR  DEPARTMENT PUBLIC DISCLOSURE MAY CONTAIN
INFORMATION IDENTIFYING A PATIENT, EMPLOYEE,  OR  LICENSED  HEALTH  CARE
PROFESSIONAL IN CONNECTION WITH A SPECIFIC INFECTION INCIDENT.
  5.  THE  FIRST  REPORT  REQUIRED UNDER SUBDIVISION TWO OF THIS SECTION
SHALL BE SUBMITTED AND PUBLISHED NO LATER  THAN  DECEMBER  THIRTY-FIRST,
TWO  THOUSAND  FOURTEEN.  FOLLOWING  THE  INITIAL REPORT, THE DEPARTMENT
SHALL PUBLISH THESE REPORTS ANNUALLY.
  S 2997-J. PRIVACY. IT IS THE EXPRESSED INTENT OF THE LEGISLATURE  THAT
A  PATIENT'S  RIGHT  OF  CONFIDENTIALITY  SHALL  NOT  BE VIOLATED IN ANY
MANNER. PATIENT SOCIAL SECURITY NUMBERS OR ANY  OTHER  INFORMATION  THAT
COULD  BE  USED  TO IDENTIFY AN INDIVIDUAL PATIENT SHALL NOT BE RELEASED
NOTWITHSTANDING ANY OTHER PROVISION OF LAW.
  S 2997-K. PROTECTION FOR TAKING ACTION. NO HOSPITAL  SHALL  DISCHARGE,
REFUSE  TO  HIRE,  REFUSE  TO SERVE, RETALIATE IN ANY MANNER OR TAKE ANY
ADVERSE ACTION AGAINST ANY EMPLOYEE, APPLICANT FOR EMPLOYMENT OR  HEALTH
CARE  PROVIDER BECAUSE SUCH EMPLOYEE, APPLICANT FOR EMPLOYMENT OR HEALTH
CARE PROVIDER TAKES OR HAS  TAKEN  ANY  ACTION  IN  FURTHERANCE  OF  THE
ENFORCEMENT OF THE PROVISIONS OF THIS TITLE.
  S  2997-L.  PATIENT SAFETY TRUST FUND. 1. ALL MONEYS RECEIVED PURSUANT
TO SECTION TWENTY-NINE HUNDRED NINETY-SEVEN-M OF THIS TITLE AND SUBDIVI-
SION TWO OF THIS SECTION SHALL BE CREDITED TO THE PATIENT  SAFETY  TRUST
FUND, ESTABLISHED PURSUANT TO SECTION NINETY-FIVE-H OF THE STATE FINANCE

S. 1117                             5

LAW.  THE  COMMISSIONER  SHALL USE THE FUND FOR REGULATORY OVERSIGHT AND
PUBLIC ACCOUNTABILITY FOR SAFE HEALTH CARE, INCLUDING, BUT  NOT  LIMITED
TO  THE AUDIT SPECIFIED UNDER SECTION TWENTY-NINE HUNDRED NINETY-SEVEN-H
OF THIS TITLE.
  2.  IN ADDITION TO THE MONEYS RECEIVED PURSUANT TO SECTION TWENTY-NINE
HUNDRED NINETY-SEVEN-M OF THIS TITLE, AN ANNUAL PATIENT SAFETY SURCHARGE
ON LICENSING FEES CHARGED TO THOSE MEDICAL FACILITIES REQUIRED TO REPORT
UNDER THIS TITLE IS HEREBY ESTABLISHED.
  S 2997-M. DEPARTMENT ACTIONS AND PENALTIES. 1. IN ANY  CASE  IN  WHICH
THE  DEPARTMENT  RECEIVES  A  REPORT FROM A HOSPITAL PURSUANT TO SECTION
TWENTY-NINE HUNDRED NINETY-SEVEN-F OF  THIS  TITLE,  THAT  INDICATES  AN
ONGOING  THREAT  OR IMMINENT DANGER OF DEATH OR SERIOUS BODILY HARM, THE
DEPARTMENT SHALL MAKE  AN  ONSITE  INSPECTION  OR  INVESTIGATION  WITHIN
FORTY-EIGHT  HOURS  OR  TWO  BUSINESS DAYS, WHICHEVER IS GREATER, OF THE
RECEIPT OF THE REPORT  AND  SHALL  COMPLETE  THAT  INVESTIGATION  WITHIN
FORTY-FIVE DAYS.
  2.  IF  A  HOSPITAL  FAILS  TO REPORT A MEDICAL HARM EVENT PURSUANT TO
SECTION TWENTY-NINE HUNDRED NINETY-SEVEN-F OF THIS TITLE, THE DEPARTMENT
MAY ASSESS THE LICENSEE A CIVIL PENALTY IN AN AMOUNT NOT TO  EXCEED  ONE
HUNDRED  DOLLARS  FOR  EACH  DAY  THAT THE ADVERSE EVENT IS NOT REPORTED
FOLLOWING THE INITIAL FIVE-DAY PERIOD  OR  TWENTY-FOUR-HOUR  PERIOD,  AS
APPLICABLE.  IF  THE LICENSEE DISPUTES A DETERMINATION BY THE DEPARTMENT
REGARDING ALLEGED FAILURE TO REPORT AN ADVERSE EVENT, THE LICENSEE  MAY,
WITHIN  TEN  DAYS,  REQUEST  A  HEARING PURSUANT TO SECTION TWENTY-EIGHT
HUNDRED SIX OF THIS CHAPTER. PENALTIES SHALL BE PAID WHEN APPEALS PURSU-
ANT TO SUCH SECTION HAVE BEEN EXHAUSTED.
  3. THE DEPARTMENT SHALL BE RESPONSIBLE FOR  ENSURING  COMPLIANCE  WITH
THIS  TITLE  AS  A  CONDITION OF LICENSURE UNDER ARTICLE TWENTY-EIGHT OF
THIS  CHAPTER  AND  SHALL  ENFORCE  SUCH  COMPLIANCE  ACCORDING  TO  THE
PROVISIONS OF SUCH ARTICLE.
  S  2997-N.  OVERSIGHT INFORMATION. THE DEPARTMENT'S HOSPITAL LICENSING
DIVISION AND THE DIVISION COLLECTING THE INFORMATION  REQUIRED  BY  THIS
TITLE  SHALL SHARE DATA REGARDING MEDICAL HARM EVENTS IN HOSPITALS, WITH
PATIENT CONFIDENTIALITY MAINTAINED BY BOTH DIVISIONS.
  S 2997-O. PUBLIC AWARENESS. THE DEPARTMENT SHALL PROMOTE PUBLIC AWARE-
NESS REGARDING WHERE AND HOW CONSUMERS CAN FILE COMPLAINTS ABOUT  HOSPI-
TALS,  INCLUDING  A REQUIREMENT THAT INFORMATION ABOUT FILING COMPLAINTS
BE POSTED IN A VISIBLE MANNER:
  1. ON THE DEPARTMENT'S LICENSING WEBSITE;
  2. ON EACH HOSPITAL'S WEBSITE;
  3. IN PUBLIC AREAS IN HOSPITAL FACILITIES;
  4. ON ALL HOSPITAL CORRESPONDENCE AND BILLING DOCUMENTS; AND
  5. ON ALL CORRESPONDENCE BY THE DEPARTMENT'S HOSPITAL LICENSING  DIVI-
SION  AND THE DIVISION COLLECTING DATA ON MEDICAL HARM EVENTS UNDER THIS
TITLE.
  S 3. Subdivision 1 of section  2806  of  the  public  health  law,  as
amended  by  chapter  490  of  the  laws  of 1983, is amended to read as
follows:
  1. A hospital operating certificate may be revoked, suspended, limited
or annulled by the commissioner on proof  that:  (a)  the  hospital  has
failed  to comply with the provisions of this article or rules and regu-
lations promulgated thereunder; [or] (b) a general hospital has  refused
or failed to admit or to provide for necessary emergency care and treat-
ment  for  an unidentified person brought to it in an unconscious, seri-
ously ill or wounded condition; OR  (C)  A  HOSPITAL  HAS  VIOLATED  ANY
PROVISION  OF  TITLE  ONE-A OF ARTICLE TWENTY-NINE-D OF THIS CHAPTER.  A

S. 1117                             6

hospital operating certificate shall be revoked, limited or annulled  by
the  commissioner upon revocation, limitation or annulment by the public
health council of approval of establishment of such hospital.
  S  4. The state finance law is amended by adding a new section 95-h to
read as follows:
  S 95-H. PATIENT SAFETY TRUST FUND. 1. THERE IS HEREBY  ESTABLISHED  IN
THE  JOINT  CUSTODY  OF THE COMMISSIONER OF TAXATION AND FINANCE AND THE
COMPTROLLER, A SPECIAL FUND TO BE KNOWN AS  THE  "PATIENT  SAFETY  TRUST
FUND".
  2.  SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE
OF SUCH FUND, ANY CIVIL PENALTIES PAID PURSUANT TO  SECTION  TWENTY-NINE
HUNDRED  NINETY-SEVEN-M  OF THE PUBLIC HEALTH LAW AND THE ANNUAL PATIENT
SAFETY SURCHARGE ESTABLISHED BY SECTION TWENTY-NINE HUNDRED  NINETY-SEV-
EN-L OF THE PUBLIC HEALTH LAW.
  3.  MONEYS OF THE FUND SHALL BE AVAILABLE FOR REGULATORY OVERSIGHT AND
PUBLIC ACCOUNTABILITY FOR SAFE HEALTH CARE, INCLUDING, BUT  NOT  LIMITED
TO THE PURPOSES SET FORTH IN TITLE ONE-A OF ARTICLE TWENTY-NINE-D OF THE
PUBLIC HEALTH LAW.
  4.  MONEYS IN THE FUND SHALL BE KEPT SEPARATE AND SHALL NOT BE COMMIN-
GLED WITH ANY OTHER MONEYS IN THE CUSTODY OF THE COMMISSIONER  OF  TAXA-
TION AND FINANCE AND THE COMPTROLLER.
  5.  THE  MONEYS OF THE FUND SHALL BE PAID OUT ON THE AUDIT AND WARRANT
OF THE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE COMMISSIONER
OF HEALTH, OR BY AN OFFICER OR EMPLOYEE  OF  THE  DEPARTMENT  OF  HEALTH
DESIGNATED BY SUCH COMMISSIONER.
  S 5. This act shall take effect on the one hundred twentieth day after
it  shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of this act on its effective date is authorized to be made on  or
before such date.