Be it enacted by the General Assembly of Virginia:

1. That the Code of Virginia is amended by adding in Chapter 10 of Title 32.1 an article numbered 5, consisting of sections numbered 32.1-331.18, 32.1-331.19, and 32.1-331.20, as follows:

§32.1-331.18. Definitions.

As used in this article, unless the context requires a different meaning:

"Council" means the Patient-Centered Medical Home Advisory Council.

"Patient-centered medical home" means a physician-led team approach to providing health care that (i) originates in a primary care setting; (ii) fosters a partnership among the patient, the personal provider and other health care professionals, and where appropriate, the patient's family; (iii) utilizes the partnership to access all medical health-related services and nonmedical health-related services needed by the patient to achieve maximum health potential; and (iv) maintains a centralized, comprehensive record of all health-related services to promote continuity of care.

§32.1-331.19. Patient-Centered Medical Home Advisory Council; established.

A. The Patient-Centered Medical Home Advisory Council is established as an advisory council, within the meaning of "advisory" as defined in §2.2-2100, in the executive branch of state government. The Council shall advise and make recommendations to the Department of Medical Assistance Services on reforms to the Commonwealth's program of medical assistance that would increase the quality of care while containing costs through the use of a patient-centered medical home system.

B. The Council shall consist of eight nonlegislative citizen members to be appointed by the Governor, subject to confirmation by the General Assembly, and the Secretary of Health and Human Resources, or his designee, who shall serve ex officio with voting privileges. The nonlegislative citizen members shall include one or more representatives from the following organizations: the Virginia Academy of Family Physicians, the Virginia Section of the American Congress of Obstetricians and Gynecologists, the Virginia Council of Nurse Practitioners, the Virginia Chapter of the American College of Physicians, the Virginia Chapter of the American Academy of Pediatrics, the Medical Society of Virginia, and the Virginia Hospital & Healthcare Association.

C. The ex officio member of the Council shall serve a term coincident with his term of office. Nonlegislative citizen members shall be appointed for a term of four years. Appointments to fill vacancies, other than by expiration of a term, shall be for the unexpired terms. Vacancies shall be filled in the same manner as the original appointments. All members may be reappointed. However, no nonlegislative citizen member shall serve more than two consecutive four-year terms. The remainder of any term to which a member is appointed to fill a vacancy shall not constitute a term in determining the member's eligibility for reappointment.

D. The Council shall elect a chairman and vice-chairman from among its membership. A majority of the members shall constitute a quorum. The meetings of the Council shall be held at the call of the chairman or whenever the majority of the members so request.

E. Members shall receive such compensation for the discharge of their duties as provided in §2.2-2813. All members shall be reimbursed for reasonable and necessary expenses incurred in the discharge of their duties as provided in §§2.2-2813 and 2.2-2825. Funding for the costs of compensation and expenses of the members shall be provided by the Department of Medical Assistance Services.

F. The Department of Medical Assistance Services shall provide staff support to the Council. All agencies of the Commonwealth shall provide assistance to the Council, upon request.

§32.1-331.20. Patient-Centered Medical Home Advisory Council; powers and duties.

A. The Council shall recommend to the Department of Medical Assistance Services an implementation plan for a patient-centered medical home system in the Commonwealth. The implementation plan shall include strategies to (i) coordinate health care services, (ii) provide for monitoring and data collection on patient-centered medical homes, and (iii) provide for training and education of health care professionals. The plan may include the use of telemedicine, the development of pilot programs, and partnering with pediatric and family practice residency programs.

B. The Council shall also recommend to the Department of Medical Assistance Services (i) qualifications for the certification of patient-centered medical homes, with such qualifications based on standards developed by a nongovernmental accrediting agency such as the National Committee for Quality Assurance or the Accreditation Association for Ambulatory Health Care; (ii) education and training standards for health care professionals participating in the patient-centered medical home system; (iii) a reimbursement methodology; and (iv) incentives for participation in the patient-centered medical home system that (a) ensure that providers enter and remain in the system and (b) promote wellness, prevention, chronic care management, immunizations, health care management, and the use of electronic health records.