Bill Text: CA SB1031 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Medical malpractice insurance: volunteer physicians and

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2010-06-29 - Set, first hearing. Hearing canceled at the request of author. [SB1031 Detail]

Download: California-2009-SB1031-Amended.html

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BILL NUMBER: SB 1031	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 18, 2010
	AMENDED IN SENATE  APRIL 5, 2010

INTRODUCED BY   Senator Corbett

                        FEBRUARY 12, 2010

   An act to add Article 17.1 (commencing with Section 2399) to
Chapter 5 of Division 2 of, and to repeal Section 2399.7 of, the
Business and Professions Code, relating to medicine.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1031, as amended, Corbett. Medical malpractice insurance:
volunteer physicians and surgeons.
   Under existing law, the Medical Practice Act, the Medical Board of
California is responsible for the certification and regulation of
physicians and surgeons. Existing law requires the board, in
conjunction with the Health Professions Education Foundation, to
study the issue of providing medical malpractice insurance to
volunteer physicians and surgeons and to report its findings to the
Legislature by January 1, 2008.
   The bill would create the Volunteer Insured Physicians Program,
administered by the board, to provide specified medical malpractice
insurance coverage to volunteer physicians providing uncompensated
care to  low-income  patients pursuant to a contract
with a qualified health care entity, as defined. The bill would
provide unspecified funding for the program from the Contingent Fund
of the Medical Board of California for a limited period of time. The
bill would require annual reports to the Legislature until January 1,
2015.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Article 17.1 (commencing with Section 2399) is added to
Chapter 5 of Division 2 of the Business and Professions Code, to
read:

      Article 17.1.  Volunteer Insured Physicians Program


   2399.  This article shall be known and may be cited as the
Volunteer Insured Physicians (VIP) Act, which authorizes the creation
and implementation of the Volunteer Insured Physicians (VIP) Program
 within the Medical Board of California  .
   2399.1.  (a) For purposes of this article, the following
definitions shall apply:
   (1) "Licensee" means the holder of a  current  physician
and surgeon's  certificate who is engaged in the professional
practice authorized by the certificate under the jurisdiction of the
board.  
   (2) "Volunteer physician" means a licensee under this chapter who
volunteers to provide primary care medical services, as described in
Section 2399.3, to a low-income patient, with no monetary or material
compensation.  
   (3) "Qualified health care entity" means a county health
department, hospital district, or hospital or clinic owned and
operated by a governmental entity. 
    (4)     "Low-income
patient" means a person who is without health care coverage and whose
family income does not exceed 200 percent of the federal poverty
level, as defined annually by the federal Office of Management and
Budget.   certificate.  
   (2) "Patient" means a person who is eligible for free or
discounted services at a qualified health care entity.  
   (3) "Qualified health care entity" means a community clinic as
defined in subdivision (a) of Section 1204 of, or subdivision (c) of
Section 1206 of, the Health and Safety Code, a county health
department, or a hospital district, hospital, or a clinic owned and
operated by a governmental entity that provides primary care to
low-income patients.  
   (5) 
    (4)  "Voluntary service agreement" means an agreement
executed pursuant to this article between the board, a licensee, and
a qualified health care entity that authorizes the health care entity
to enter into a voluntary service contract with the licensee.

   (6) 
    (5)  "Voluntary service application" means the written
application developed by the board that a licensee must complete and
submit in order to be considered for participation in the VIP
Program. 
   (7) 
    (6)  "Voluntary service contract" means an agreement
executed pursuant to this article between a licensee and a qualified
health care entity that authorizes the licensee to deliver health
care services to  low-income  patients as an agent
of the qualified health care entity on a  volunteer 
 voluntary  , uncompensated basis. 
   (7) "Volunteer physician" means a licensee under this chapter who
provides primary care medical services in California without
receiving monetary or material compensation and who is participating
in the VIP Program. 
   2399.2.  (a) A licensee who wants to provide voluntary,
uncompensated care to  low-income  patients, but who
does not have medical professional liability insurance that 
would include   provides  insurance coverage for
premiums, defense, and indemnity costs for any claims arising from
voluntary and uncompensated care, may submit a voluntary service
application to the board for coverage under the VIP Program. 

   (b) A licensee who submits an application for a waiver of initial
and renewal licensing fees under Section 2083 or 2442 and who also
submits a voluntary service application shall be simultaneously
assessed by the board for eligibility to receive medical professional
liability insurance coverage for premiums, defense, and indemnity
costs through the VIP Program.  
   (b) When the board receives an application for voluntary license
status under Section 2083 or 2442, the board shall assess whether the
applicant qualifies for coverage under the VIP Program and notify
the applicant of its finding. 
   (c) A licensee who has standard medical professional liability
insurance coverage for his or her regular practice but who is not
covered for volunteer service may submit a voluntary service
application to participate in the VIP Program. In conjunction with
the voluntary service application, the licensee shall submit
verification from his or her medical professional liability insurance
carrier that voluntary, uncompensated care is not covered by his or
her existing medical professional liability insurance policy.
   (d) The board shall review the voluntary service application to
determine if the applicant meets the criteria for VIP Program
participation. These criteria shall include both of the following:
   (1) Holding an active license in good standing to practice
medicine in the State of California.
   (2) No record of disciplinary action by the board or any other
regulatory board.
   (e)  Continued eligibility   Eligibility
 for the VIP Program shall be reassessed by the board during
each license renewal cycle.
   2399.3.  (a) Licensees approved by the board for participation in
the VIP Program may enter into a voluntary service agreement with the
board and a qualified health care entity that acknowledges the terms
of the VIP Program and transfers responsibility from the volunteer
physician to the state for medical professional liability insurance,
including premiums, defense, and indemnity costs, for voluntary,
uncompensated medical care that is provided in accordance with an
executed and signed voluntary service contract between the volunteer
physician and the qualified health care entity and that complies with
the terms of the VIP Program.
   (b) Volunteer physicians participating in the VIP Program shall
agree to limit the scope of the volunteer medical care to primary
care medical services.
   (c) The voluntary service contract between the volunteer physician
and the qualified health care entity shall include all of the
following provisions:
   (1) All care provided shall be both voluntary and uncompensated
 and shall be provided to low-income patients.  
. 
   (2) Patient selection and initial referral shall be made solely by
the qualified health care entity and the volunteer physician shall
accept all referred patients except as otherwise allowed by law.
However, the number of patients that must be accepted may be limited
by the voluntary service contract and patients may not be transferred
to the volunteer physician  based on a   in
 violation of any antidumping provisions of the Omnibus Budget
Reconciliation Act of 1989 (P.L. 101-239) or the Omnibus Budget
Reconciliation Act of 1990 (P.L. 101-508).
   (3) The qualified health care entity shall have access to the
patient records of the volunteer physician delivering services under
the voluntary service contract.
   (4) The volunteer physician shall be subject to 
supervision by  the qualified health care entity's standard
peer review process and all related laws regarding peer review,
including, but not limited to, the filing of reports pursuant to
Section 805.
   (5)  The   If the qualified health care
entity has no peer review process, the  qualified health care
entity shall utilize a quality assurance program to monitor services
delivered by the volunteer physician under the voluntary 
services   service  contract.
   (6) The right to dismiss or terminate a volunteer physician
delivering services under the voluntary service contract shall be
retained by the qualified health care entity. If the 
volunteer services   voluntary service  contract is
terminated, the qualified health care entity shall notify the VIP
Program in writing within five days.
   2399.4.  The fact that a volunteer physician is insured under the
VIP Program in relation to particular medical services rendered shall
not operate to change or affect the laws applicable to any claims
arising from or related to those medical services. All laws
applicable to a claim remain the same regardless of whether a
licensee is insured through the VIP Program.
   2399.5.  If a volunteer physician covered by the VIP Program
receives notice or otherwise obtains knowledge that a claim of
professional medical negligence has been or may be filed, the 
volunteer  physician shall immediately notify the VIP Program or
the contracted liability carrier.
   2399.6.  All costs for administering the VIP Program, including
the cost of medical professional liability insurance for premiums,
defense, and indemnity coverage for program participants, shall be
paid for from the Contingent Fund of the Medical Board of California,
in an amount not to exceed ____ dollars ($____) per year.
   2399.7.  (a) The board shall report annually to the Legislature
summarizing the efficacy of access and  treatment 
outcomes with respect to providing health care services for 
low-income  patients pursuant to this article. The report
shall include the numbers of injuries and deaths reported, claims
statistics for all care rendered under the VIP Program, including the
total of all premiums paid, the number of claims made for each year
of the VIP Program, the amount of all indemnity payments made, the
cost of defense provided, and administration costs associated with
all claims made against volunteer physicians arising from voluntary
and uncompensated care provided under the VIP Program.
   (b) (1) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government Code.

   (2) Pursuant to Section 10231.5 of the Government Code, this
section is repealed on January 1, 2015. 
   2399.75.  Nothing in this article shall be construed to prevent
the board from taking appropriate action against a licensee. 
   2399.8.  This article shall remain operative until January 1,
2016, or until another viable source of funding is identified and
adopted, whichever occurs first.