Bill Text: IN SB0254 | 2010 | Regular Session | Amended
Bill Title: Voluntary audits by health facilities.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Engrossed - Dead) 2010-02-24 - Second reading: call withdrawn [SB0254 Detail]
Download: Indiana-2010-SB0254-Amended.html
Citations Affected: IC 16-28.
Synopsis: Voluntary audits by health facilities. Provides that a
voluntary health facility audit report is privileged and inadmissible as
evidence in a civil or administrative action except in specified
circumstances. States that a voluntary health facility audit report is
admissible in a criminal proceeding.
Effective: July 1, 2010.
January 11, 2010, read first time and referred to Committee on Health and Provider
Services.
January 21, 2010, reported favorably _ Do Pass.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning
health.
Chapter 15. Voluntary Health Facility Audit Reports
Sec. 1. This chapter applies to a health facility licensed under IC 16-28-2.
Sec. 2. As used in this chapter, "health facility audit report" means a voluntary internal evaluation conducted by an owner or operator of a health facility, or an employee or independent contractor on behalf of the owner or operator, concerning:
(1) a health facility;
(2) an activity at a health facility that is regulated by IC 16-28-2 or by administrative rules adopted under the authority of IC 16-28-2; or
(3) a management system related to a health facility or an activity at a health facility;
that is designed to identify and prevent violations of laws, rules,
and regulations and improve compliance with laws.
Sec. 3. (a) Except as provided in subsection (b), a health facility
audit report is privileged and inadmissible as evidence in a civil or
administrative legal action, including an enforcement action under
IC 16-28-4 or IC 16-28-5.
(b) A health facility audit report is not considered privileged in
any of the following circumstances:
(1) A criminal investigation or proceeding.
(2) A civil or administrative hearing if the court determines
that the health facility audit report was first issued after
January 1, 2010, and either of the following applies:
(A) The privilege is asserted for a fraudulent purpose.
(B) The material is subject to the privilege, and the
material shows evidence of noncompliance with:
(i) this title or a rule adopted by the department under
this title; or
(ii) a federal law or regulation;
and the person claiming the privilege did not promptly
initiate and diligently pursue appropriate efforts to achieve
compliance with the law, regulation, or rule.
(3) An owner or operator of a health facility that prepared the
health facility audit report or caused the report to be
prepared waives the privilege of the health facility audit
report.
(c) The privilege described in this section does not apply to the
following:
(1) Documents, communications data, reports, or other
information that must be collected, developed, maintained,
reported, or otherwise made available to the state department
under this title, a rule or standard adopted under this title, or
any other federal, state, or local law, permit, or order.
(2) Information obtained by observation, sampling, or
monitoring by a regulatory agency.
(3) Information obtained from a source independent of the
health facility audit report.
However, the state department may not adopt an administrative
rule for the purpose of qualifying the information under this
subsection and circumventing the privilege established in this
chapter.
(d) A health facility audit report is admissible in a criminal
proceeding. However, if the state department or a prosecuting
attorney obtains, reviews, or uses a health facility audit report in
a criminal proceeding, the administrative or civil privilege created
by this chapter is not waived or eliminated.
Sec. 4. (a) A party asserting the privilege described in section 3
of this chapter has the burden of proving:
(1) that the privilege applies; and
(2) that the party made an appropriate effort to achieve
compliance with a law, regulation, or rule if the evidence
indicates that the party was in noncompliance with a law,
regulation, or rule.
(b) A party seeking disclosure of material in a health facility
audit report under section 3(b)(2)(A) of this chapter has the burden
of proving that the privilege is being asserted for a fraudulent
purpose.
Sec. 5. (a) A party that submits a health facility audit report to
the state department waives any privilege that would otherwise be
available under this chapter.
(b) If the state department determines that a health facility
audit report or part of the health facility audit report may not be
disclosed to the public under IC 5-14-3-4(a), the health facility
audit report or part of the report may not be disclosed by a public
agency unless access to the health facility audit report is required
by:
(1) state law;
(2) federal law; or
(3) a court;
in accordance with IC 5-14-3-4(a).
Sec. 6. If a court determines that a health facility audit report
is admissible under section 3 or 4 of this chapter, the court may
compel disclosure of only the parts of the health facility audit
report that are relevant to the issues in dispute in the proceeding.
Sec. 7. The parties to a legal action may at any time stipulate for
an order to be entered in court that directs whether specific
information contained in a health facility audit report is subject to
privilege under this chapter.
Sec. 8. The privilege described in this chapter does not limit,
waive, or abrogate the scope or nature of any other statutory or
common law privilege, including the following:
(1) The work product doctrine.
(2) The attorney-client privilege.
