S T A T E O F N E W Y O R K
________________________________________________________________________
6321
2009-2010 Regular Sessions
I N S E N A T E
November 30, 2009
___________
Introduced by Sen. VALESKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Finance
AN ACT to amend the public health law, the civil practice law and rules
and the education law, in relation to establishing the Sorry Works!
demonstration program; making an appropriation therefor and providing
for the repeal of such provisions upon expiration thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Article 29-D of the public health law is amended by adding
a new title 4 to read as follows:
TITLE 4
SORRY WORKS! DEMONSTRATION PROGRAM
SECTION 2999-G. SORRY WORKS! DEMONSTRATION PROGRAM.
2999-H. COMMISSIONER'S SORRY WORKS! DEMONSTRATION PROGRAM WORK-
GROUP.
2999-I. SORRY WORKS! DEMONSTRATION PROGRAM GRANTS.
2999-J. SORRY WORKS! DEMONSTRATION PROGRAM REPORT.
S 2999-G. SORRY WORKS! DEMONSTRATION PROGRAM. 1. THE COMMISSIONER, IN
CONSULTATION WITH THE SUPERINTENDENT OF INSURANCE, IS AUTHORIZED AND
DIRECTED TO CONDUCT A SORRY WORKS! DEMONSTRATION PROGRAM, WITHIN AMOUNTS
APPROPRIATED, AT A MINIMUM OF TWO SITES LOCATED WITHIN THE GEOGRAPHIC
CONFINES OF THE NORTHERN REGION AND THE CENTRAL REGION OF THE STATE, ONE
OF THE DEMONSTRATION SITES SHALL BE LOCATED IN A PRIMARILY RURAL AREA
AND ONE SHALL BE LOCATED IN A PRIMARILY URBAN AREA, AS DEFINED BY THE
COMMISSIONER, FOR THE PURPOSE OF DETERMINING WHETHER PARTICIPATING
HOSPITALS, PHYSICIANS, AND OTHER HEALTH CARE PROVIDERS WHO ARE MEMBERS
OF THE MEDICAL STAFF WHO, WHEN AN UNANTICIPATED OUTCOME HAS OCCURRED,
APOLOGIZE AND IN CASES WHERE THE STANDARD OF PATIENT CARE WAS VIOLATED,
PROMPTLY ACKNOWLEDGE THE MISTAKE AND OFFER A PROMPT SETTLEMENT, EXPERI-
ENCE A REDUCTION IN THEIR TOTAL COSTS FOR MEDICAL MALPRACTICE VERDICTS,
SETTLEMENTS, AND DEFENSE LITIGATION COSTS. FOR PURPOSES OF THIS SUBDI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15118-01-9
S. 6321 2
VISION, THE TERM "NORTHERN REGION" SHALL CONSIST OF THE COUNTIES OF
ALBANY, CLINTON, COLUMBIA, ESSEX, FRANKLIN, FULTON, GREENE, HAMILTON,
MONTGOMERY, OTSEGO, RENSSELAER, SARATOGA, SCHENECTADY, SCHOHARIE, WARREN
AND WASHINGTON, AND THE TERM "CENTRAL REGION" SHALL CONSIST OF THE COUN-
TIES OF BROOME, CAYUGA, CHEMUNG, CHENANGO, CORTLAND, HERKIMER, JEFFER-
SON, LEWIS, LIVINGSTON, MADISON, MONROE, ONEIDA, ONONDAGA, ONTARIO,
OSWEGO, SCHUYLER, SENECA, ST. LAWRENCE, STEUBEN, TIOGA, TOMPKINS, WAYNE
AND YATES.
2. UNDER THE DEMONSTRATION PROGRAM, PARTICIPATING HOSPITALS, WITHIN
FORTY-FIVE DAYS OF THE UNANTICIPATED OUTCOME OF THE PROVISION OF HEALTH
CARE SERVICES, AFTER CONDUCTING A ROOT CAUSE ANALYSIS OF THE UNANTIC-
IPATED OUTCOME, SHALL IN CASES WHERE THE STANDARD OF CARE IS FOUND TO
HAVE BEEN VIOLATED, ACKNOWLEDGE AND EXPLAIN THE NATURE OF THE FAILURE IN
CARE, APOLOGIZE FOR THE MISTAKE, EXPLAIN THE EFFORTS THE HOSPITAL WILL
TAKE TO ASSURE THAT SUCH A FAILURE DOES NOT REOCCUR AND PROMPTLY OFFER A
FAIR SETTLEMENT. IF A SETTLEMENT IS ACCEPTED, ALL FURTHER LITIGATION
WITH RESPECT TO THE MISTAKE SHALL BE PROHIBITED. PARTICIPATING HOSPI-
TALS SHALL PROVIDE TO THE PATIENT WRITTEN NOTIFICATION OF THE RIGHT TO
COUNSEL AND SHALL ENCOURAGE PATIENTS AND THEIR FAMILIES TO EXERCISE THIS
RIGHT. THE NOTIFICATION SHALL FURTHER INCLUDE AN AFFIRMATIVE DECLARATION
THAT NO ACTION WAS TAKEN TO DISSUADE A PATIENT FROM UTILIZING COUNSEL
DURING THE NEGOTIATIONS, PROVIDED, HOWEVER, THAT ANY CASE FOR WHICH A
CLAIM OF MEDICAL MALPRACTICE OR NOTICE OF CLAIM TO COMMENCE A MEDICAL
MALPRACTICE ACTION IS FILED SHALL NOT BE ELIGIBLE FOR ADJUDICATION UNDER
THIS TITLE.
3. NOTWITHSTANDING ANY LAW TO THE CONTRARY, ANY COLLATERAL SOURCE
PAYER WHO HAS MADE PAYMENT FOR THE COST OF MEDICAL CARE, DENTAL CARE,
PODIATRIC CARE, CUSTODIAL CARE, REHABILITATION SERVICES, LOSS OF EARN-
INGS OR OTHER ECONOMIC LOSS TO OR ON BEHALF OF A PATIENT WHO HAS
RECEIVED A SETTLEMENT FROM A HOSPITAL PARTICIPATING IN THE SORRY WORKS!
DEMONSTRATION PROGRAM ESTABLISHED PURSUANT TO THIS TITLE MAY NOT SEEK
REIMBURSEMENT FROM THE INDIVIDUAL BASED ON THEIR RECEIPT OF SUCH A
SETTLEMENT.
4. NOTWITHSTANDING SECTION THREE HUNDRED FIFTEEN OF THE INSURANCE LAW
OR ANY OTHER LAW TO THE CONTRARY, ANY SETTLEMENT OFFER MADE TO A PATIENT
AND ACCEPTED BY THE PATIENT AS A RESULT OF AN UNANTICIPATED OUTCOME BY A
HOSPITAL PARTICIPATING IN THE SORRY WORKS! DEMONSTRATION PROGRAM ESTAB-
LISHED PURSUANT TO THIS TITLE SHALL NOT CONSTITUTE A REPORTABLE CLAIM.
5. PURSUANT TO SECTION FORTY-FIVE HUNDRED FORTY-NINE OF THE CIVIL
PRACTICE LAW AND RULES, ANY STATEMENT OR AFFIRMATION RELATING TO AN
EXPLANATION, APOLOGY AND OFFER OF SETTLEMENT MADE WITHIN THE TIME PERIOD
PROVIDED FOR IN SUBDIVISION ONE OF THIS SECTION SHALL NOT BE DISCOVERA-
BLE OR ADMISSIBLE IN ANY CIVIL OR ADMINISTRATIVE PROCEEDING. EVIDENCE
OR INFORMATION THAT IS OTHERWISE ADMISSIBLE OR SUBJECT TO DISCOVERY DOES
NOT BECOME INADMISSIBLE OR PROTECTED FROM DISCOVERY SOLELY BY REASON OF
ITS DISCLOSURE OR USE IN NEGOTIATIONS PURSUANT TO THIS PROGRAM.
6. PARTICIPATION IN THE SORRY WORKS! DEMONSTRATION PROGRAM SHALL TOLL
THE APPLICABLE STATUTE OF LIMITATIONS IN CASES WHERE SUCH NEGOTIATIONS
ARE UNSUCCESSFUL. THE COMMISSIONER WITH THE ADVICE AND THE RECOMMENDA-
TION OF THE WORKGROUP CREATED PURSUANT TO SECTION TWENTY-NINE HUNDRED
NINETY-NINE-H OF THIS TITLE SHALL ESTABLISH GUIDELINES FOR DETERMINING
WHEN NEGOTIATIONS UNDER THE SORRY WORKS! DEMONSTRATION PROGRAM BEGIN
AND END FOR THE PURPOSE OF TOLLING THE STATUTE.
7. PARTICIPATION BY A HOSPITAL IN THE SORRY WORKS! DEMONSTRATION
PROGRAM SHALL BE ON A VOLUNTARY BASIS. A PROGRAM PARTICIPANT MAY WITH-
DRAW FROM THE PROGRAM BY NOTIFYING THE COMMISSIONER. ANY MISTAKES IN
S. 6321 3
PATIENT CARE THAT RESULT IN HARM THAT OCCURRED PRIOR TO THE PROGRAM
PARTICIPANT NOTIFYING THE COMMISSIONER OF THE PARTICIPANT'S WITHDRAWAL
FROM THE PROGRAM SHALL CONTINUE TO BE SUBJECT TO THE TERMS OF THE
PROGRAM.
8. A HOSPITAL APPLYING TO PARTICIPATE IN THE SORRY WORKS! DEMON-
STRATION PROGRAM SHALL:
(A) NOTIFY THE COMMISSIONER IN WRITING OF ITS REQUEST TO PARTICIPATE;
SUCH NOTIFICATION SHALL INCLUDE DOCUMENTATION OF AN AFFIRMATIVE VOTE BY
THE MEDICAL STAFF OF ITS CONCURRENCE WITH THE ELECTION OF THE HOSPITAL
ADMINISTRATION TO PARTICIPATE;
(B) INDEPENDENTLY OR IN CONJUNCTION WITH OTHER PROGRAM PARTICIPANTS
ADOPT A FORMAL TRAINING PROGRAM, ACCEPTABLE TO THE COMMISSIONER, TO
TRAIN ITS STAFF ON THE PROGRAM PARAMETERS AND PROTOCOLS, AND ON SUCCESS-
FUL COMMUNICATION STRATEGIES IN AN EFFORT TO IMPROVE THE LIKELIHOOD OF A
SUCCESSFUL PROGRAM; AND
(C) PROVIDE THE COMMISSIONER WITH DATA REGARDING ITS TOTAL COSTS FOR
MEDICAL MALPRACTICE VERDICTS, SETTLEMENTS, AND DEFENSE LITIGATION COSTS
FOR THE FIRST YEAR OF THE PARTICIPATION IN THE PROGRAM, FOR THE ENTIRE
PERIOD OF TIME OF PARTICIPATION IN THE PROGRAM, AND FOR A PERIOD OF FIVE
YEARS PRIOR TO PARTICIPATION IN THE PROGRAM TO ENABLE THE COMMISSIONER
TO DETERMINE AVERAGE COSTS FOR THE HOSPITAL DURING THAT FIVE-YEAR PERI-
OD. PROGRAM PARTICIPANTS SHALL ALSO PROVIDE TO THE COMMISSIONER ANY
ADDITIONAL NON-PATIENT SPECIFIC INFORMATION REQUIRED BY THE COMMISSIONER
IN ORDER TO EVALUATE THE EFFECTIVENESS OF THE SORRY WORKS! DEMONSTRATION
PROGRAM.
9. THE COMMISSIONER SHALL APPROVE THE SORRY WORKS! DEMONSTRATION
PROGRAM SITES BASED ON AN ASSESSMENT OF THE REQUESTING HOSPITAL'S ABILI-
TY TO EFFECTUATE THE GOALS OF THE PROGRAM.
10. WITHIN ONE HUNDRED TWENTY DAYS OF THE COMPLETION OF THE FIRST YEAR
OF THE SORRY WORKS! DEMONSTRATION PROGRAM, THE COMMISSIONER SHALL
COMPLETE AN ANALYSIS, ON A FACILITY SPECIFIC BASIS, OF THE PARTICIPATING
HOSPITALS' TOTAL COSTS FOR MEDICAL MALPRACTICE VERDICTS, SETTLEMENTS,
AND DEFENSE LITIGATION COSTS FOR THE FIRST YEAR OF THE PROGRAM, AS
COMPARED TO THEIR AVERAGE COSTS OVER THE FIVE YEAR PERIOD PRECEDING THE
FIRST YEAR OF THE PROGRAM.
S 2999-H. COMMISSIONER'S SORRY WORKS! DEMONSTRATION PROGRAM WORKGROUP.
1. THE COMMISSIONER SHALL, WITHIN FORTY-FIVE DAYS OF THE EFFECTIVE DATE
OF THIS TITLE, CONVENE AND CHAIR DIRECTLY OR INDIRECTLY, A WORKGROUP,
INCLUDING, BUT NOT LIMITED TO, STAFF OF THE DEPARTMENT OF INSURANCE WITH
EXPERTISE IN MEDICAL MALPRACTICE LIABILITY INSURANCE DESIGNATED BY THE
SUPERINTENDENT OF INSURANCE, AND REPRESENTATIVES OF: STATEWIDE AND
REGIONAL ASSOCIATIONS REPRESENTING HOSPITALS, PHYSICIANS AND OTHER
HEALTH CARE PROVIDERS THAT ARE HOSPITAL MEDICAL STAFF MEMBERS; THE
PLAINTIFFS AND DEFENSE BAR WITH EXPERTISE IN MEDICAL MALPRACTICE; NEW
YORK STATE ADMITTED MEDICAL MALPRACTICE LIABILITY INSURANCE CARRIERS;
AND CONSUMER AND PATIENT ADVOCACY GROUPS WITH EXPERTISE IN MEDICAL MALP-
RACTICE INSURANCE AND PATIENT SAFETY. THE WORKGROUP SHALL OFFER ADVICE
AND RECOMMENDATIONS TO THE COMMISSIONER IN THE FOLLOWING AREAS:
(A) ON THE APPROVAL OF DEMONSTRATION PROGRAM SITES;
(B) ON THE ACCEPTABILITY OF TRAINING PROGRAMS THAT HOSPITALS WISHING
TO PARTICIPATE IN THE DEMONSTRATION PROGRAM SUBMIT TO THE COMMISSIONER;
(C) ON GUIDELINES FOR DETERMINING WHEN NEGOTIATIONS UNDER THE DEMON-
STRATION PROGRAM BEGIN AND END FOR THE PURPOSE OF TOLLING THE STATUTE;
AND
(D) ON THE IMPLEMENTATION AND ADMINISTRATION OF THE DEMONSTRATION
PROGRAM, PROGRAM GUIDELINES AND PARAMETERS, THE PROGRAM'S EVALUATION,
S. 6321 4
THE MERIT OF EXPANDING THE PROGRAM, AND STRATEGIES TO FACILITATE PARTIC-
IPATION IN THE PROGRAM.
2. THE WORKGROUP SHALL OFFER ITS INITIAL ADVICE AND RECOMMENDATION TO
THE COMMISSIONER AT LEAST SIXTY DAYS BEFORE THE COMMENCEMENT OF THE
SORRY WORKS! DEMONSTRATION PROGRAM. THE COMMISSIONER SHALL CONSIDER THE
ADVICE AND RECOMMENDATIONS OF THE WORKGROUP IN MAKING DECISIONS UNDER
THIS TITLE PROVIDED HOWEVER, THAT THE PROGRAM SHALL NOT BE DELAYED DUE
TO THE FAILURE OF THE WORKGROUP TO SUBMIT TIMELY ADVICE AND RECOMMENDA-
TIONS.
S 2999-I. SORRY WORKS! DEMONSTRATION PROGRAM GRANTS. 1. TO THE EXTENT
THAT FUNDS ARE MADE AVAILABLE THEREFOR, THE COMMISSIONER IS AUTHORIZED
TO ISSUE GRANTS TO SORRY WORKS! DEMONSTRATION PROGRAM PARTICIPANTS INDI-
VIDUALLY OR COLLECTIVELY TO THEIR DESIGNATED REPRESENTATIVE, FOR THE
PURPOSES OF SUPPORTING TRAINING FOR THE DEMONSTRATION PROGRAMS AND TO
DEFRAY ANY INCREASED COSTS RELATED TO MEDICAL MALPRACTICE VERDICTS,
SETTLEMENTS, AND DEFENSE LITIGATION COSTS THAT A HOSPITAL INCURS AS A
RESULT OF PARTICIPATION IN THE PROGRAM. THE COMMISSIONER IS FURTHER
AUTHORIZED TO APPLY FOR GRANTS AND ACCEPT DONATIONS FROM PRIVATE AND
PUBLIC SOURCES FOR THE PURPOSES OF FUNDING GRANTS PURSUANT TO THIS
SECTION.
2. ANY HOSPITAL THAT IS FOUND BY THE COMMISSIONER TO HAVE EXPERIENCED
INCREASED COSTS FOR MEDICAL MALPRACTICE VERDICTS, SETTLEMENTS, AND
DEFENSE LITIGATION COSTS DURING THE FIRST YEAR OF THE DEMONSTRATION
PROGRAM PERIOD AS A RESULT OF PARTICIPATION IN THE DEMONSTRATION
PROGRAM, PURSUANT TO SUBDIVISION EIGHT OF SECTION TWENTY-NINE HUNDRED
NINETY-NINE-G OF THIS TITLE MAY APPLY TO THE COMMISSIONER FOR GRANT
FUNDING TO DEFRAY SUCH COSTS, PROVIDED, HOWEVER, THAT GRANT AWARDS UNDER
THIS SUBDIVISION MAY NOT EXCEED THE TOTAL AMOUNT OF FUNDS REMAINING
AVAILABLE. SHOULD TOTAL GRANT FUNDING REQUESTS EXCEED AVAILABLE FUNDS,
GRANTS MADE PURSUANT TO THIS SUBDIVISION SHALL BE MADE ON A PRO RATA
BASIS.
S 2999-J. SORRY WORKS! DEMONSTRATION PROGRAM REPORT. WITHIN ONE
HUNDRED EIGHTY DAYS OF THE COMPLETION OF THE FIRST YEAR OF THE SORRY
WORKS! DEMONSTRATION PROGRAM, THE COMMISSIONER SHALL SUBMIT A REPORT ON
THE PROGRAM TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY AND THE TEMPO-
RARY PRESIDENT OF THE SENATE. SUCH REPORT SHALL INCLUDE, BUT NOT BE
LIMITED TO: THE EXPERIENCE OF THE PROGRAM; THE EFFECTIVENESS OF THE
PROGRAM; THE VALUE IN EXPANDING THE PROGRAM; AND SUGGESTED STATUTORY
CHANGES TO THE PROGRAM.
S 2. The civil practice law and rules is amended by adding a new
section 4549 to read as follows:
S 4549. PROTECTIONS OF EXPRESSIONS OF APOLOGIES, CONDOLENCE AND SYMPA-
THY. 1. IN ANY CIVIL ACTION BROUGHT BY OR ON BEHALF OF A PATIENT WHO
EXPERIENCES AN UNANTICIPATED OUTCOME OF MEDICAL CARE, OR IN AN ARBI-
TRATION PROCEEDING RELATED TO, OR IN LIEU OF SUCH CIVIL ACTION WHEN SUCH
CARE IS PROVIDED IN A FACILITY PARTICIPATING IN THE SORRY WORKS! DEMON-
STRATION PROGRAM PURSUANT TO TITLE FOUR OF ARTICLE TWENTY-NINE-D OF THE
PUBLIC HEALTH LAW, ALL STATEMENTS AND AFFIRMATIONS, INCLUDING AN OFFER
OF SETTLEMENT, WHETHER IN WRITING OR ORAL, AND ALL GESTURES OR CONDUCT
EXPRESSING APOLOGY, SYMPATHY, COMMISERATION, CONDOLENCE, COMPASSION, OR
A GENERAL SENSE OF BENEVOLENCE, OR ACCEPTANCE OF RESPONSIBILITY, INCLUD-
ING ANY EXPLANATION MADE BY A HEALTH CARE PROVIDER OR AN EMPLOYEE OR AN
AGENT OF A HEALTH CARE PROVIDER PARTICIPATING IN THE PROGRAM TO A
PATIENT OR WHICH RELATE TO THE DISCOMFORT, PAIN, SUFFERING, INJURY, OR
DEATH OF THE PATIENT AS THE RESULT OF THE UNANTICIPATED OUTCOME OF
MEDICAL CARE SHALL BE INADMISSIBLE AS EVIDENCE FOR ANY REASON INCLUDING,
S. 6321 5
BUT NOT LIMITED TO, AS AN ADMISSION OF LIABILITY OR AS EVIDENCE OF AN
ADMISSION AGAINST INTEREST.
2. THE PROVISIONS OF THIS SECTION SHALL NOT REQUIRE THE EXCLUSION OF
ANY EVIDENCE WHICH IS OTHERWISE ADMISSIBLE SOLELY BECAUSE SUCH EVIDENCE
WAS PRESENTED DURING THE COURSE OF COMPROMISE NEGOTIATIONS.
3. FOR THE PURPOSES OF THIS SECTION, UNLESS THE CONTEXT OTHERWISE
REQUIRES, THE TERM "UNANTICIPATED OUTCOME" MEANS THE OUTCOME OF A
MEDICAL DIAGNOSIS, TREATMENT OR PROCEDURE THAT DIFFERS FROM AN EXPECTED,
HOPED FOR OR DESIRED RESULT.
S 3. Section 6530 of the education law is amended by adding a new
subdivision 50 to read as follows:
50. FAILURE TO COOPERATE AND PARTICIPATE REASONABLY AND IN GOOD FAITH,
IN THE QUALITY ASSURANCE, INCIDENT REPORTING AND PEER REVIEW PROGRAMS,
ACTIVITIES AND REQUIREMENTS AND PROCEDURES COVERED BY THE CONFIDENTIALI-
TY PROVISIONS OF SECTION TWENTY-EIGHT HUNDRED FIVE-M OF THE PUBLIC
HEALTH LAW OR CLAUSE (A), (B), (D) OR (E) OF SUBDIVISION THREE OF
SECTION SIXTY-FIVE HUNDRED TWENTY-SEVEN OF THIS ARTICLE IN THE CASE OF
HEALTH CARE PROVIDERS WHO ARE PARTICIPATING IN THE SORRY WORKS! DEMON-
STRATION PROGRAM ESTABLISHED PURSUANT TO SECTION TWENTY-NINE HUNDRED
NINETY-NINE-G OF THE PUBLIC HEALTH LAW AND WHEREBY A SETTLEMENT HAS BEEN
REACHED PURSUANT TO SUBDIVISION TWO OF SUCH SECTION PROHIBITING FURTHER
LITIGATION.
S 4. The sum of one million dollars ($1,000,000), is hereby appropri-
ated to the department of health out of moneys in the state treasury in
the general fund, not otherwise appropriated, and made immediately
available for the purposes of carrying out the provisions of this act,
specifically for grants to effectuate the Sorry Works! demonstration
program.
S 5. This act shall take effect immediately, provided however, that
the demonstration program established pursuant to section 2999-g of the
public health law as added by section one of this act shall begin 180
days after such effective date and provided further that this act shall
expire and be deemed repealed 2 years and 180 days after such effective
date.