< Back to H.R. 1747 (104th Congress, 1995–1996)

Text of the Federally Supported Health Centers Assistance Act of 1995

This bill was enacted after being signed by the President on December 26, 1995. The text of the bill below is as of Jun 6, 1995 (Introduced).

This is not the latest text of this bill.

Source: GPO

HR 1747 IH

104th CONGRESS

1st Session

H. R. 1747

To amend the Public Health Service Act to permanently extend and clarify malpractice coverage for health centers, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

June 6, 1995

Mrs. JOHNSON of Connecticut (for herself, Mr. WYDEN, and Mr. FRANK of Massachusetts) introduced the following bill; which was referred to the Committee on Commerce


A BILL

To amend the Public Health Service Act to permanently extend and clarify malpractice coverage for health centers, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; REFERENCE.

    (a) SHORT TITLE- This Act may be cited as the ‘Federally Supported Health Centers Assistance Act of 1995’.

    (b) REFERENCE- Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Public Health Service Act.

SEC. 2. PERMANENT EXTENSION OF PROGRAM.

    (a) IN GENERAL- Section 224(g) (42 U.S.C. 233(g)) is amended by striking the last sentence of paragraph (3).

    (b) CONFORMING AMENDMENTS-

      (1) Section 224(k)(1)(A) (42 U.S.C. 233(k)(1)(A)) is amended by striking ‘each of the fiscal years 1993, 1994, and 1995’ and inserting ‘each fiscal year’.

      (2) Section 224(k)(2) (42 U.S.C. 233(k)(2)) is amended by striking ‘each of the fiscal years 1993, 1994, and 1995’ and inserting ‘each fiscal year’.

SEC. 3. CLARIFICATION OF COVERAGE.

    Section 224(g)(1) (42 U.S.C. 233(g)(1)) is amended--

      (1) in the first sentence, by striking ‘officer, employee, or contractor’ and inserting ‘officer, governing board member, or employee of such an entity, and any contractor’; and

      (2) in the second sentence, by inserting after ‘officer,’ the following ‘governing board member,’.

SEC. 4. COVERAGE FOR SERVICES FURNISHED TO INDIVIDUALS OTHER THAN CENTER PATIENTS.

    Section 224(g)(1) (42 U.S.C. 233(g)) is amended--

      (1) by redesignating paragraph (1) as paragraph (1)(A); and

      (2) by adding at the end thereof the following:

      ‘(B) The deeming of any entity or officer, governing board member, employee, or contractor of the entity to be an employee of the Public Health Service under subparagraph (A) shall apply with respect to services provided--

        ‘(i) to all patients of the entity, and

        ‘(ii) subject to subparagraph (C), to individuals who are not patients of the entity.

      ‘(C) Subparagraph (B)(ii) applies to services provided to individuals who are not patients of an entity if the Secretary determines, after reviewing an application submitted under subparagraph (D), that the provision of the services to such individuals--

        ‘(i) benefits patients of the entity and general populations that could be served by the entity through community-wide intervention efforts within the communities served by such entity;

        ‘(ii) facilitates the provision of services to patients of the entity; or

        ‘(iii) are otherwise required under an employment contract (or similar arrangement) between the entity and an officer, governing board member, employee, or contractor of the entity.’.

SEC. 5. APPLICATION PROCESS.

    (a) APPLICATION REQUIREMENT- Section 224(g)(1) (42 U.S.C. 233(g)(1)) (as amended by section 4) is further amended--

      (1) in subparagraph (A), by inserting ‘and subject to the approval by the Secretary of an application under subparagraph (D)’ after ‘For purposes of this section’; and

      (2) by adding at the end thereof the following:

      ‘(D) The Secretary may not deem an entity or an officer, governing board member, employee, or contractor of the entity to be an employee of the Public Health Service under subparagraph (A), and may not apply such deeming to services described in subparagraph (B)(ii), unless the entity has submitted an application for such deeming to the Secretary in such form and such manner as the Secretary shall prescribe. The application shall contain detailed information, along with supporting documentation, to verify that the entity, and the officer, governing board member, employee, or contractor of the entity, as the case may be, meets the requirements of subparagraphs (B) and (C) of this paragraph and that the entity meets the requirements of paragraphs (1) through (4) of subsection (h).

      ‘(E) The Secretary shall make a determination of whether an entity or an officer, governing board member, employee, or contractor of the entity is deemed to be an employee of the Public Health Service for purposes of this section within 30 days after the receipt of an application under subparagraph (D). The determination of the Secretary that an entity or an officer, governing board member, employee, or contractor of the entity is deemed to be an employee of the Public Health Service for purposes of this section shall apply for the period specified by the Secretary under subparagraph (A).

      ‘(F) Once the Secretary makes a determination that an entity or an officer, governing board member, employee, or contractor of an entity is deemed to be an employee of the Public Health Service for purposes of this section, the determination shall be

final and binding upon the Secretary and the Attorney General and other parties to any civil action or proceeding. Except as provided in subsection (i), the Secretary and the Attorney General may not determine that the provision of services which are the subject of such a determination are not covered under this section or are not within the scope of employment or responsibility of the entity or its officers, governing board members, employees, or contractors.

      ‘(G) The Secretary, for good cause shown, may reverse a determination under subparagraph (E). The decision of the Secretary to reverse such a determination shall be made on the record after opportunity for a full and fair hearing. Any such reversal by the Secretary shall apply only after the entity receives notice of such reversal and shall only apply to acts and omissions occurring after the date on which such notice was received.’.

    (b) APPROVAL PROCESS- Section 224(h) (42 U.S.C. 233(h)) is amended--

      (1) by striking the matter preceding paragraph (1) and inserting the following: ‘The Secretary may not approve an application under subsection (g)(1)(D) unless the Secretary determines that the entity--’; and

      (2) by striking ‘has fully cooperated’ in paragraph (4) and inserting ‘will fully cooperate’.

SEC. 6. TIMELY RESPONSE TO FILING OF ACTION OR PROCEEDING.

    Section 224 (42 U.S.C. 233) is amended by adding at the end thereof the following:

    ‘(l)(1) If a civil action or proceeding is filed in a State court against any entity described in subsection (g)(4) or any officer, governing board member, employee, or any contractor of such an entity for damages described in subsection (a), the Attorney General, within 15 days after being notified of such filing, shall make an appearance in such court and advise such court as to whether the Secretary has determined under subsections (g) and (h), that such entity, officer, governing board member, employee, or contractor of the entity is deemed to be an employee of the Public Health Service for purposes of this section with respect to the actions or omissions that are the subject of such civil action or proceeding. Such advice shall be deemed to satisfy the provisions of subsection (c) that the Attorney General certify that an entity, officer, governing board member, employee, or contractor of the entity was acting within the scope of their employment or responsibility.

    ‘(2) If the Attorney General fails to appear in State court within the time period prescribed under paragraph (1), upon petition of any entity or officer, governing board member, employee, or contractor of the entity named, the civil action or proceeding shall be removed to the appropriate United States district court. The civil action or proceeding shall be stayed in such court until such court conducts a hearing, and makes a determination, as to the appropriate forum or procedure for the assertion of the claim for damages described in subsection (a) and issues an order consistent with such determination.’.

SEC. 7. APPLICATION OF COVERAGE TO MANAGED CARE PLANS.

    Section 224 (42 U.S.C. 223) (as amended by section 6) is amended by adding at the end the following:

    ‘(m)(1) An entity or officer, governing board member, employee, or contractor of an entity described in subsection (g)(1) shall, for purposes of this section, be deemed to be an employee of the Public Health Service with respect to services provided to individuals who are enrollees of a managed care plan if the entity contracts with such managed care plan for the provision of services.

    ‘(2) Each managed care plan which enters into a contract with an entity described in subsection (g)(4) shall deem the entity and any officer, governing board member, employee, or contractor of the entity as meeting whatever malpractice coverage requirements such plan may require of contracting providers for a calendar year if such entity or officer, governing board member, employee, or contractor of the entity has been deemed to be an employee of the Public Health Service for purposes of this section for such calendar year. Any plan which is found by the Secretary on the record, after notice and an opportunity for a full and fair hearing, to have violated this subsection shall upon such finding cease, for a period to be determined by the Secretary, to receive and to be eligible to receive any Federal funds under titles XVIII or XIX of the Social Security Act.

    ‘(3) For purposes of this subsection, the term ‘managed care plan’ shall mean health maintenance organizations and similar entities that contract at-risk with payors for the provision of health services or plan enrollees and which contract with providers (such as entities described in subsection (g)(4)) for the delivery of such services to plan enrollees.’.

SEC. 8. COVERAGE FOR PART-TIME PROVIDERS UNDER CONTRACTS.

    Section 224(g)(5)(B) (42 U.S.C. 223(g)(5)(B)) is amended to read as follows:

        ‘(B) in the case of an individual who normally performs an average of less than 32 1/2 hours of services per week for the entity for the period of the contract, the individual is a licensed or certified provider of services in the fields of family practice, general internal medicine, general pediatrics, or obstetrics and gynecology.’.

SEC. 9. DUE PROCESS FOR LOSS OF COVERAGE.

    Section 224(i)(1) (42 U.S.C. 233(i)(1)) is amended by striking ‘may determine, after notice and opportunity for a hearing’ and inserting ‘may on the record determine, after notice and opportunity for a full and fair hearing’.

SEC. 10. AMOUNT OF RESERVE FUND.

    Section 224(k)(2) (42 U.S.C. 223(k)(2)) is amended by striking ‘$30,000,000’ and inserting ‘$10,000,000’.