Bill Text: PA SB700 | 2009-2010 | Regular Session | Introduced

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Bill Title: Providing loans for health information technology.

Spectrum: Slight Partisan Bill (Republican 15-8)

Status: (Introduced - Dead) 2009-07-01 - Re-referred to APPROPRIATIONS [SB700 Detail]

Download: Pennsylvania-2009-SB700-Introduced.html

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PRINTER'S NO. 823
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 700 Session of2009
INTRODUCED BY WONDERLING, ERICKSON, PILEGGI, CORMAN, VANCE, GORDNER, TARTAGLIONE, BOSCOLA, STACK, FERLO, RAFFERTY, STOUT, COSTA, KITCHEN, PIPPY, BROWNE, BRUBAKER, BAKER, ORIE, M. WHITE, KASUNIC, ALLOWAY AND EARLL, APRIL 3, 2009
REFERRED TO PUBLIC HEALTH AND WELFARE, APRIL 3, 2009
AN ACT
Providing loans for health information technology.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Health
Information Technology Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Clinical decision support system." Interactive computer
programs which are evidence based and designed to assess
physicians and other health professionals with decision making
tasks.
"Community-based health care provider." Any of the following
nonprofit health care centers which provide primary health care
services:
(1) A federally qualified health center as defined in
section 1905(1)(2)(B) of the Social Security Act (49 Stat.
620, 42 U.S.C. § 1396d(1)(2)(B).
(2) A rural health clinic as defined in section 1861
(aa)(2) of the Social Security Act (49 Stat. 620, 42 U.S.C. §
1395x(aa)(2)), certified by Medicare.
(3) A freestanding hospital clinic serving a federally
designated health care professional shortage area.
(4) A free or partial-pay health clinic which provides
services by volunteer medical providers.
"Department." The Department of Health of the Commonwealth.
"Electronic health record." A medical record that complies
with implementation specification and certification criteria
adopted by the National Coordinator.
"Fund." The Health Information Technology Loan Fund.
"Health care provider." A health care facility or health
care practitioner as defined in section 103 of the act of July
19, 1979 (P.L.130, No.48), known as the Health Care Facilities
Act, a group practice or a community-based health care provider.
"Health information." The medical records of a patient.
"Health information technology." The application of
information processing of electronic health records utilizing
products, devices, including hardware and software, integrated
technologies, licenses, intellectual property, upgrades,
packaged solutions or related systems sold as services that are
designed for or support the collection, storage, retrieval,
exchange, sharing, creation, maintenance, access, management or
use of health information.
"Health information technology regional extension center."
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Any United States based nonprofit institution or organization,
or group thereof, that provides technical assistance and
disseminates best practices to support and accelerate efforts to
adopt, implement and effectively utilize health information
technology that allows for the electronic exchange and use of
information in compliance with standards, implementation
specifications and certification criteria adopted by the
National Coordinator.
"Health information technology system." An automated,
interoperable system that utilizes health information technology
to integrate health records, clinical activities and data
sharing in any of the following:
(1) Pharmacy ordering and tracking.
(2) Laboratory testing.
(3) Physician order management.
(4) Access by clinicians.
(5) Access by consumers.
(6) Telemedicine.
(7) Data sharing among health care facilities,
physicians and health insurers.
(8) Other transaction monitoring or other exchange of
health information that promotes patient safety and
efficiency in the delivery of health care.
"Health insurer." Any of the following providers of health
care insurance coverage:
(1) An insurer licensed under the act of May 17, 1921
(P.L.682, No.284), known as The Insurance Company Law of
1921.
(2) A health maintenance organization as defined in
section 3 of the act of December 29, 1972 (P.L.1701, No.364),
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known as the Health Maintenance Organization Act.
(3) A not-for-profit health plan corporation operating
under 40 Pa.C.S. Chs. 61 (relating to hospital plan
corporations) and 63 (relating to professional health
services plan corporations).
"Interoperability." The ability to communicate and exchange
data accurately, effectively, securely and consistently among
different technology systems, software applications and networks
in a manner that maintains and preserves the clinical purpose of
the data.
"National Coordinator." The head of the Office of the
National Coordinator for Health Information Technology.
"Program." The Health Information Technology Program
established in section 3.
"Regional health information organization." A not-for-profit
organization that adopts bylaws, memoranda of understanding or
other documents that provide for the establishment of governance
structure to enable participation by multiple health care
providers in the development and use of health information
technology.
Section 3. Health Information Technology Program.
(a) Establishment.--A Health Information Technology Program
is established in the department to administer grants received
under section 3014 of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5, 123 Stat. 115) and from other sources
to be used to provide loans to health care providers or health
information technology regional extension centers to implement
health information technology systems.
(b) Eligible activities.--The program shall provide loans
for the following:
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(1) The purchase or enhancement of health information
technology or telecommunications necessary to create an
interoperable and integrated health information technology
system.
(2) The payment of costs and expenses associated with
the preparation of plans, specifications, studies and surveys
necessary to determine the scope and effectiveness of a
health information technology system.
(3) The training of physicians and personnel in the use
of health information technology.
(4) The improvement of security in the exchange of
electronic health records.
(5) Clinical decision support systems.
(c) Limitations.--The amount of a loan to a health care
provider or regional health information technology organization
may not exceed $1,000,000. No less than 50% of available funds
shall be used for loans to health care providers in counties of
the fourth, fifth, sixth, seventh or eighth class.
(d) Loan requirement.--Any loan made under this section
shall comply with all of the following:
(1) Have an interest rate that does not exceed the
market interest rate.
(2) Require the repayment of principal and interest
payments to begin no later than one year after the date the
loan was awarded.
(e) Administrative costs.--No more than 3% of money in the
fund may be used for the administration of the program.
Section 4. Fund.
A fund is established in the State Treasury to be known as
the Health Information Technology Loan Fund. The following shall
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be deposited in the fund:
(1) Money appropriated to the fund by the General
Assembly.
(2) Grants received under the American Recovery and
Reinvestment Act of 2009 (Public Law 111-5, 123 Stat. 115) or
other Federal law.
(3) Earnings derived from the investment of the money in
the fund after deducting investment expenses.
(4) Loan repayments of principal and interest.
Section 5. Eligibility requirement.
In order to be eligible for a loan under section 3, a health
care provider must provide medically necessary services to
individuals regardless of the individual's ability to pay for
the services and must be a participating provider with the
Department of Public Welfare of services to individuals eligible
for medical assistance.
Section 6. Application.
(a) Submission.--In order to receive a loan under section 3,
a health care provider or health information technology regional
extension center shall submit an application in a form and
manner prescribed by the department.
(b) Requirements.--An application submitted under subsection
(a) shall set forth the manner in which the health information
technology system will do the following:
(1) Comply with all criteria adopted by the National
Coordinator.
(2) Protect privacy and security of health information.
(3) Maintain and provide permitted access to health
information.
(4) Improve the quality of health care by reducing
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health care costs, medical errors, inappropriate care and
incomplete information and the coordination of care and
information among health care providers, health insurers and
other entities.
(5) Ensure interoperability with other systems and
health care providers.
(6) Provide consumer access to personal medical
information.
(7) Comply with all Federal and State laws and
regulations relating to security and notification of any
breach of electronic medical records.
(c) Additional information.--In addition to the information
under subsection (b), the applicant shall provide:
(1) A feasibility study of the proposed health
information technology system.
(2) A business or financial plan that describes the
long-term sustainability and proposed benefits of the plan
and the financial cost to the applicant.
(3) A strategic plan and schedule for the development
and implementation of the health information technology
system.
Section 7. Medicaid provider health information technology
adoption and operation payments.
(a) Secretary of Public Welfare.--The Secretary of Public
Welfare shall, within 60 days following the effective date of
this section, make payments to eligible health care providers
for the purchase or enhancement of health information technology
or telecommunications necessary to create an interoperable and
integrated health information technology system, including the
payment of costs and expenses associated with the preparation of
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plans, specifications, studies, training and surveys in
accordance with the requirements of section 4201 of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5, 123
Stat. 115).
(b) Duplicative requirements.--The Secretary of Public
Welfare shall seek to avoid duplicative requirements from the
Federal Government to demonstrate meaningful use of certified
health information technology under this act. The Secretary of
Public Welfare may deem satisfaction of Federal requirements to
be sufficient to qualify as meaningful use under this section.
Section 8. Accountability.
(a) Information required.--Within one year of the award of a
loan under this act, the recipient shall provide all of the
following to the department:
(1) A report on the status of the strategic plan and the
development of the health information technology system.
(2) An accounting of the expenditure of funds from the
loan and from other sources.
(3) A report on any reductions in medical errors,
increases in efficiency and advances in the delivery of
patient-centered medical care.
(b) Annual report.--The department shall submit an annual
report to the chairman and minority chairman of the Public
Health and Welfare Committee of the Senate and the chairman and
minority chairman of the Health and Human Services Committee of
the House of Representatives, which shall include the number and
amount of loans awarded, a description of the system being
funded, total amount of funds spent and the impact on the
delivery of health care.
Section 9. Duties of department.
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The department shall do all of the following:
(1) Develop a strategic plan for the implementation of a
Statewide interoperable health information technology system
for all health care providers, health insurers and consumers.
(2) Administer the health information technology program
to provide loans to eligible health care providers.
(3) Award loans in all geographic areas of the
Commonwealth.
(4) Adopt standards for health information technology
that are consistent with those developed by the National
Coordinator.
(5) Provide a loan application form within 90 days of
the effective date of this section.
(6) Ensure that health information technology policies
and programs of the department are coordinated with the
Department of Public Welfare and other executive branch
agencies and with Federal agencies.
(7) Share appropriate data relating to the use of health
information technology systems with the Department of Public
Welfare, the Health Care Cost Containment Council, the
Patient Safety Authority and other State agencies. Any data
collected by a State agency relating to the operation of
health information technology systems in the Commonwealth
shall be shared with the department.
(8) Give preference to applications which provide
regional health information technology systems that link
multiple health care providers and which provide direct
patient access to health care information.
(9) Audit loans awarded under this act.
(10) Provide ongoing assessment of the benefits and
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costs of health information technology systems, including
information relating to reduction in medical errors,
reduction in physician visits, economic impact, efficiencies
and other information.
(11) Develop a public information program to inform the
public of the efficiency and safety advantage of health
information technology.
Section 20. Effective date.
This act shall take effect in 60 days.
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