Bill Text: PA HB2106 | 2009-2010 | Regular Session | Amended


Bill Title: Establishing the Pennsylvania Health Information Exchange Authority and the Health Information Technology Fund; and providing for grants and loans for health information technology and for duties of the Department of Community and Economic Development.

Spectrum: Strong Partisan Bill (Democrat 29-3)

Status: (Engrossed - Dead) 2010-10-12 - Referred to COMMUNICATIONS AND TECHNOLOGY [HB2106 Detail]

Download: Pennsylvania-2009-HB2106-Amended.html

  

 

PRIOR PRINTER'S NOS. 2936, 3957

PRINTER'S NO.  4288

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

HOUSE BILL

 

No.

2106

Session of

2009

  

  

INTRODUCED BY R. TAYLOR, DeLUCA, BARBIN, BELFANTI, BROWN, BURNS, D. COSTA, FABRIZIO, FRANKEL, FREEMAN, GIBBONS, HORNAMAN, JOHNSON, JOSEPHS, LENTZ, LONGIETTI, MANN, MATZIE, McILVAINE SMITH, MELIO, MUNDY, MURPHY, PASHINSKI, SHAPIRO, SIPTROTH, SONNEY, SWANGER, THOMAS, YOUNGBLOOD, BRADFORD AND KORTZ, NOVEMBER 23, 2009

  

  

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, SEPTEMBER 21, 2010   

  

  

  

AN ACT

  

1

Establishing the Pennsylvania Health Information Exchange

2

Authority and the Health Information Technology Fund; and

3

providing for grants and loans for health information

4

technology and for duties of the Department of Community and

5

Economic Development.

6

The General Assembly of the Commonwealth of Pennsylvania

7

hereby enacts as follows:

8

CHAPTER 1 

9

PRELIMINARY PROVISIONS

10

Section 101.  Short title.

11

This act shall be known and may be cited as the Health

12

Information Technology Act.

13

Section 102.  Definitions.

14

The following words and phrases when used in this act shall

15

have the meanings given to them in this section unless the

16

context clearly indicates otherwise:

17

"Clinical decision support system."  An interactive computer

 


1

system that assists health care providers in applying new

2

information to patient care through the analysis of patient-

3

specific clinical variables.

4

"Community-based health care clinic."  A nonprofit health

5

care center located in this Commonwealth providing comprehensive

6

health care services without regard for a patient's ability to

7

pay and:

8

(1)  meets either of the following criteria:

9

(i)  serves a federally designated medically

10

underserved area, a medically underserved population or a

11

health professional shortage area; or

12

(ii)  serves a patient population with a majority of

13

that population having an income less than 200% of the

14

Federal poverty income guidelines; and

15

(2)  includes any of the following:

16

(i)  a federally qualified health center as defined

17

in section 1905(1)(2)(B) of the Social Security Act (49

18

Stat. 620, 42 U.S.C. § 1396d(1)(2)(B)) or a federally

19

qualified health center look-alike;

20

(ii)  a rural health clinic as defined in 1861(aa)(2)

21

of the Social Security Act (49 Stat. 620, 42 U.S.C. §

22

1395x(aa)(2));

23

(iii)  a hospital outpatient clinic certified by

24

Medicare;

25

(iv)  a free or partial-pay health clinic that

26

provides medical home and primary care services by

27

volunteer and nonvolunteer health care providers; or

28

(v)  a nurse-managed health care clinic that is

29

managed by advanced practice nurses, a federally

30

qualified health center or an independent nonprofit

- 2 -

 


1

health or social services agency.

2

"Department."  The Department of Community and Economic

3

Development of the Commonwealth.

4

"Fund."  The Health Information Technology Fund established

5

in section 503.

6

"Health care facility."  A health care facility as defined

7

under section 802.1 of the act of July 19, 1979 (P.L.130,

8

No.48), known as the Health Care Facilities Act, or an entity

9

licensed as a hospital under the act of June 13, 1967 (P.L.31,

10

No.21), known as the Public Welfare Code.

11

"Health care provider."  A person licensed by the

12

Commonwealth to provide health care or professional medical

13

services. The term includes, but is not limited to, a physician,

14

a dentist, a pediatrician, a certified nurse midwife, a

15

podiatrist, a certified registered nurse practitioner, a

16

physician assistant, a skilled nursing facility, nursing home,

17

home health entity, a community-based health care clinic and

18

community mental health center.

19

"Health informatics."  Any of the following:

20

(1)  The electronic exchange of health care information

21

among entities in the health care system, including, but not

22

limited to:

23

(i)  Physicians and other health care providers.

24

(ii)  Health insurance companies and health

25

maintenance organizations.

26

(iii)  Federal and State government health payers.

27

(iv)  Employers.

28

(v)  Pharmacies and pharmacy benefit managers.

29

(vi)  Laboratories.

30

(vii)  Public health agencies. 

- 3 -

 


1

(2)  The provision of the most current, complete and

2

accurate information possible when making health care

3

decisions regarding patients.

4

(3)  The sharing and exchange of health care information

5

among organizations that are owners or custodians of the

6

health care information.

7

(4)  The use of information technology to enable and

8

improve the exchange and presentation of health care

9

information.

10

(5)  The adoption and use of electronic medical record

11

technology, where appropriate, within the health care system.

12

(6)  The reduction of total health care costs through

13

improved quality and reduction in redundancies and

14

administrative waste.

15

"Health information."  Information that:

16

(1)  is created or received by a health care provider,

17

health plan, public health authority or health care

18

clearinghouse; and

19

(2)  relates to the past, present or future physical or

20

mental health or condition of an individual, the provision of

21

health care to an individual or the past, present or future

22

payment for the provision of health care to an individual.

23

"Health information exchange" or "HIE."  The electronic

24

movement of health-related information among organizations

25

according to nationally recognized standards.

26

"Health information technology."  Hardware, software,

27

integrated technologies or related licenses, intellectual

28

property, upgrades or packaged solutions sold as services that

29

are designed for or support the use by health care entities or

30

patients for the electronic creation, maintenance, access or

- 4 -

 


1

exchange of health information.

2

"Health information technology regional extension center."  A

3

United States-based nonprofit institution or organization or

4

group of nonprofit institutions or organizations, meeting the

5

requirements established by the Office of the National

6

Coordinator and created to:

7

(1)  Encourage adoption of certified electronic health

8

records by clinicians and hospitals.

9

(2)  Increase the probability that adopters of electronic

10

health record systems will become meaningful users of the

11

technology.

12

(3)  Assist clinicians and hospitals to become meaningful

13

users of electronic health records.

14

"Health information technology system."  The secure use of

15

information and communication technology that may include:

16

(1)  electronic health records;

17

(2)  personal health records;

18

(3)  e-mail communication;

19

(4)  clinical alerts and reminders;

20

(5)  clinical decision support systems; or

21

(6)  other technologies that store, protect, retrieve and

22

transfer clinical, administrative and financial information

23

electronically within health care settings.

24

"Health insurer."  Any of the following providers of health

25

care insurance coverage:

26

(1)  an insurer licensed under the act of May 17, 1921

27

(P.L.682, No.284), known as The Insurance Company Law of

28

1921;

29

(2)  a health maintenance organization as defined in

30

section 3 of the act of December 29, 1972 (P.L.1701, No.364),

- 5 -

 


1

known as the Health Maintenance Organization Act; or

2

(3)  a nonprofit health plan corporation operating under

3

40 Pa.C.S. Chs. 61 (relating to hospital plan corporations)

4

and 63 (relating to professional health services plan

5

corporations).

6

"Interoperability."  The ability of different information

7

technology systems and applications to exchange data securely,

8

accurately, effectively and in a manner that maintains and

9

preserves the clinical purpose of the data.

10

"National Coordinator."  The head of the office of the

11

National Coordinator of Health Information Technology.

12

"Program."  The Health Technology Program established in

13

Chapter 3.

14

"Protected health information."  Protected health information

15

under 45 CFR Parts 160 (relating to general administrative

16

requirements) and 164 Subpts. A (relating to general provisions)

17

and E (relating to privacy of individually identifiable health

18

information).

19

"Qualified electronic health record."  An electronic health

20

record that has been generated under the Recovery and

21

Reinvestment Act of 2009 (Public Law 111-5, 123 Stat. 115) and

22

that is applicable to the type of record involved.

23

CHAPTER 3

24

PENNSYLVANIA HEALTH INFORMATION EXCHANGE (PHIX)

25

Section 301.  Scope of chapter.

26

This chapter relates to facilitating and assisting in the

27

development and operation of a Statewide health information

28

exchange.

29

Section 302.  Definitions.

30

The following words and phrases when used in this chapter

- 6 -

 


1

shall have the meanings given to them in this section unless the

2

context clearly indicates otherwise:

3

"Authority."  The Pennsylvania Health Information Exchange

4

(HIE) Authority established under section 303(a).

5

"Board."  The board of directors of the Pennsylvania Health

6

Information Exchange (PHIX) Authority established under section

7

303(b).

8

Section 303.  Establishment of the Pennsylvania Health

9

Information Exchange Authority.

10

(a)  Establishment.--There is established a body corporate

11

and politic to be known as the Pennsylvania Health Information

12

Exchange (PHIX) Authority.

13

(b)  Board.--The powers and duties of the authority shall be

14

vested in and exercised by a board of directors.

15

(c)  Board composition.--The board of the authority shall

16

consist of 17 members, appointed in accordance with the

<--

17

following:

18

(1)  An individual appointed by the Governor from a list

19

of three qualified individuals with experience in health

20

informatics recommended by a technology industry organization

21

operating and based in Pennsylvania.

22

(2)  Four Commonwealth residents with an expertise in

23

health informatics. Each of the following persons shall

24

appoint one person:

25

(i)  The President pro tempore of the Senate.

26

(ii)  The Minority Leader of the Senate.

27

(iii)  The Speaker of the House of Representatives.

28

(iv)  The Minority Leader of the House of

29

Representatives.

30

(3)  Three physicians appointed by the Governor, one of

<--

- 7 -

 


1

whom shall be appointed by the Majority Leader of the Senate,

2

one of whom shall be appointed by the Minority Leader of the

3

Senate, and one of whom shall be appointed by the Majority

4

Leader of the House of Representatives, from a list of six

5

qualified licensed physicians recommended by the Pennsylvania

6

Medical Society and the Pennsylvania Osteopathic Medical

7

Association. Each shall serve initial terms of three years.

8

One appointee shall be from a practice employing ten or fewer

9

physicians. One appointee shall be from a rural practice. One

10

appointee shall be part of a large urban or suburban practice

11

of 51 physicians or more.

12

(4)  Seven individuals with expertise in health

13

informatics appointed as follows:

14

(i)  Two individuals representing a community-based

15

health care clinic, one of whom from a federally

16

qualified health center. One shall be appointed by the

17

Majority Leader of the Senate and one shall be appointed

18

by the Majority Leader of the House of Representatives.

19

(ii)  Three individuals recommended by the Hospital

20

and Healthsystem Association of Pennsylvania, one of whom

21

shall be a representative of rural hospitals. One shall

22

be appointed by the President pro tempore of the Senate

23

and one appointed by the Speaker of the House of

24

Representatives. The remaining individual shall be the

25

representative of rural hospitals and appointed by the

26

Majority Leader of the House of Representatives.

27

(iii)  One representative of the Blue Cross and Blue

28

Shield plans in Pennsylvania, appointed by the Minority

29

Leader of the Senate.

30

(iv)  One representative of a licensed insurer other

- 8 -

 


1

than a Blue Cross or Blue Shield plan, appointed by the

2

Minority Leader of the House of Representatives.

3

(5)  The Secretary of Public Welfare or a designee.

4

(6)  A representative of consumers who is not primarily

5

involved in the provision of health care or health care

6

insurance appointed by the Governor Minority Leader of the

<--

7

House of Representatives.

8

(7)  Two individuals appointed by the Governor, one with

9

expertise in privacy and the other with expertise in health

10

information security.

11

(d)  Terms.--Members of the board shall not serve more than

12

three full consecutive terms. Each board member shall serve a

13

term coterminous with the board member's appointing authority

14

unless replaced earlier by the appointing authority.

15

(e)  Quorum.--A majority of the members of the board shall

16

constitute a quorum.

17

(f)  Action.--Notwithstanding any other provision of law,

18

action may be taken by the board at a meeting upon a vote of the

19

majority of its members present in person or through the use of

20

amplified telephonic equipment if authorized by the bylaws of

21

the board.

22

(g)  Meetings.--The board shall meet at the call of the

23

chairperson or as may be provided in the bylaws of the board.

24

The board shall hold quarterly meetings which shall be subject

25

to the requirements of 65 Pa.C.S. Ch. 7 (relating to open

26

meetings). Meetings of the board shall be held within this

27

Commonwealth. Records of board meetings are subject to the act

28

of February 14, 2008 (P.L.6, No.3), known as the Right-to-Know

29

Law.

30

(h)  Chairperson.--The chairperson shall be the person

- 9 -

 


1

appointed under subsection (c)(1).

2

(i)  Formation.--The authority shall be formed within 60 days

3

of the effective date of this section.

4

(j)  Dissolution.--The authority shall be dissolved, if after

<--

5

three years of operation the costs of the authority, including

6

salaries and necessary expenses for the proper operation and

7

administration of the exchange, exceed revenues, including

8

transaction fees for uses.

9

Section 304.  Powers and duties.

10

(a)  General rule.--The board shall:

11

(1)  Adopt bylaws necessary to carry out the provisions

12

of this chapter.

13

(2)  Employ staff as necessary to implement this chapter.

14

(3)  Make, execute and deliver contracts and other

15

instruments.

16

(4)  Apply for, solicit, receive, establish priorities

17

for, allocate, disburse, contract for, administer and spend

18

moneys in the fund under Chapter 5 and other funds made

19

available to the board from a source consistent with the

20

purposes of this chapter.

21

(5)  Participate with the department in applying for and

22

distributing grants and loans under Chapter 5.

23

(6)  Accept Federal grants to carry out the purpose of

24

the authority that includes administering grants and loans in

25

accordance with the terms of the grants.

26

(7)  Impose subscription or transaction fees for users of

27

the health information exchange which shall be used to pay

28

for the exchange's operation.

29

(b)  Exchange of electronic information.--The authority

30

shall:

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1

(1)  Define the vision for a Statewide health information

2

exchange system to electronically exchange health care

3

information among entities in the health care system. This

4

shall include, but is not limited to:

5

(i)  Health care providers.

6

(ii)  Health insurance companies and managed care

7

organizations.

8

(iii)  Federal and State government health payors.

9

(iv)  Employers.

10

(v)  Pharmacies and pharmacy benefit managers.

11

(vi)  Laboratories.

12

(vii)  Public health agencies.

13

(2)  Encourage, facilitate and assist in:

14

(i)  The development of the Statewide health

15

information exchange system.

16

(ii)  The ongoing operation of the Statewide health

17

information exchange system, including monitoring the

18

performance, quality and security of the Statewide health

19

information exchange system.

20

(3)  Oversee a collaborative Statewide process using

21

public and private expertise to develop common polices,

22

clinical goals, technical requirements and architectural

23

standards for this Commonwealth's health information exchange

24

system consistent with emerging Federal requirements.

25

(4)  Develop policies using a collaborative Statewide

26

process to ensure compliance with section 305. 

27

(c)  Statewide health information technology plan.--The

28

authority shall facilitate with the department the development

29

of a Statewide health information technology plan that includes

30

the implementation of an integrated electronic health

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1

information infrastructure for the sharing of electronic health

2

information among health care facilities, health care

3

professionals, public and private payers and patients. The

4

health information technology plan shall:

5

(1)  Support the effective, efficient, Statewide use of

6

electronic health information in patient care, health care

7

policymaking, clinical research, health care financing and

8

continuous improvements to quality.

9

(2)  Propose methods to educate the general public and

10

health care providers about the value of an electronic health

11

infrastructure for improving patient care.

12

(3)  Promote the use of national standards for the

13

development of an interoperable system, which shall include

14

provisions relating to security, privacy, data content,

15

structures and format, vocabulary and transmission protocols.

16

(4)  Propose strategic investments in equipment and other

17

infrastructure elements that will facilitate the ongoing

18

development of a Statewide infrastructure.

19

(5)  Recommend funding mechanisms for the ongoing

20

development and maintenance costs of a Statewide health

21

information system, including funding options and an

22

implementation strategy for a loan and grant program.

23

(6)  Propose to incorporate the existing health care

24

information technology initiatives in order to avoid

25

incompatible systems and duplicative efforts.

26

(7)  Address issues related to data ownership, governance

27

and confidentiality and security of patient information.

28

(8)  Once the Statewide health information technology

29

plan has been drafted, the plan shall be posted for public

30

comment for a period of 30 days. Written input shall be

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1

submitted to the authority. Public comment shall be reviewed

2

and considered by the authority before a final plan is

3

adopted.

4

(d)  Statewide health information exchange.--The authority

5

shall establish Statewide health information exchange

6

capabilities for streamlining health care administrative

7

functions, including:

8

(1)  Communicating point-of-care services, including

9

laboratory results, diagnostic imaging and prescription

10

histories.

11

(2)  Communicating patient identification and emergency

12

room required information in conformity with Federal and

13

State privacy laws.

14

(3)  Real-time communication of enrollee status in

15

relation to health plan coverage, including enrollee cost-

16

sharing responsibilities.

17

(4)  Current census and status of health plan-contracted

18

providers.

19

(e)  Security measures.--The authority shall develop and

20

establish appropriate security standards to protect both the

21

transmission and the receipt of individually identifiable health

22

information or health care data that include:

23

(1)  Appropriate security standards to protect access to

24

any individually identifiable health information or health

25

care data that may be collected, assembled or maintained by

26

the authority.

27

(2)  Levels of security and protection for access to and

28

control of individually identifiable health information,

29

including mental health care data and data relating to

30

specific disease status that is governed by more stringent

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1

Federal or State privacy laws.

2

(3)  Policies and procedures for the authority for taking

3

disciplinary actions against a board member, employee or

4

other person with access to individually identifiable health

5

care information that violates Federal or State privacy laws

6

related to health care information or data maintained by the

7

corporation.

8

(4)  Privacy, security operational and technical

9

standards to assist health information exchanges in this

10

Commonwealth to ensure effective Statewide privacy, data

11

security, efficiency and interoperability across networks.

12

(f)  Advisory panels.--The board may create any advisory

13

panels that the board considers useful to advise the board and

14

the authority on issues determined by the board. The authority

15

may create advisory panels to advise the board and the authority

16

on a particular issue. The board shall consider the interests of

17

the following when creating an advisory panel:

18

(1)  Health care provider.

19

(2)  Insurers.

20

(3)  Managed care organizations.

21

(4)  Health care information systems.

22

(5)  Hospitals and health systems.

23

(6)  Laboratory services.

24

(7)  Radiological services.

25

(8)  Community-based health care clinics.

26

(9)  Health information exchange organizations.

27

(10)  Pharmacies.

28

(11)  Dentists.

29

(12)  Pediatricians.

30

(13)  Any other health care providers.

- 14 -

 


1

Section 305.  Prohibited use of information.

2

The authority shall not engage in any of the following:

3

(1)  The collection and analysis of clinical data and

<--

4

data relating to any individual without the express written

5

consent of the individual.

6

(2)  The comparison of health care providers to other

7

health care providers.

8

(3)  The creation of evidence-based standards for the

9

practice of medicine.

10

Section 306.  Appropriate use of information.

11

The authority may provide access to aggregated, de-

12

identified, protected health information to local health

13

information exchanges, Commonwealth-accredited universities and

14

public health departments for the purposes of disease

15

management, population health assessments and identifying public

16

health trends or incidents.

17

Section 307.  Annual report.

18

(a)  Deadline and contents.--The board shall report no later

19

than July 1, 2010 September 1, 2012, and annually thereafter to

<--

20

the General Assembly on the activities in the preceding year.

21

The report shall include:

22

(1)  A schedule of the year's meetings.

23

(2)  Updates to the Statewide plan created under section

24

304.

25

(3)  Updates to privacy, security, operational and

26

technical standards to assist health information exchanges in

27

this Commonwealth to ensure effective Statewide privacy, data

28

security, efficiency and interoperability across networks.

29

(4)  A list of any grants or loans that the authority

30

assisted in attaining for any health care provider or health

- 15 -

 


1

information exchange.

2

(5)  A summary of the fund receipts and expenditures,

3

including a financial statement and balance sheet.

4

(b)  Distribution.--The report shall be distributed to the

5

Secretary of Health, the chair and minority chair of the Public

6

Health and Welfare Committee of the Senate and the chair and

7

minority chair of the Health and Human Services Committee of the

8

House of Representatives.

9

(c)  Public access.--The annual report shall be made

10

available for public inspection and shall be posted on the

11

authority's publicly accessible Internet website.

12

CHAPTER 5

13

LOANS OR GRANTS FOR INFORMATION NETWORKS PROGRAM

14

Section 501. Purpose.

15

This chapter relates to assisting health care providers in

16

funding for health technology information facilitating and

17

assisting in the development and operation of a Statewide health

18

information exchange.

19

Section 502.  Health Information Technology Program.

20

(a)  Establishment.--The Loans or Grants for Information

21

Networks (LOGIN) Program is established in the department to

22

administer loans or grants:

23

(1)  under the American Recovery and Reinvestment Act of

24

2009 (Public Law 111-5, 123 Stat. 115); or

25

(2)  from sources other than those in paragraph (1) that

26

shall be used to provide funding to health care providers or

27

health information technology regional extension centers to

28

encourage the adoption and implementation of health

29

information technology.

30

(b)  Eligible activities.--The program may provide grants or

- 16 -

 


1

loans to health care facilities, health care providers or health

2

information exchanges.

3

(c)  Grants.--Grants shall be used to conduct activities to

4

facilitate and expand the electronic movement and use of health

5

information among organizations according to nationally

6

recognized standards through activities that include:

7

(1)  Training and dissemination of information on best

8

practices to integrate health information technology.

9

(2)  Promoting the interoperability of clinical data

10

repositories or registries.

11

(3)  Promoting technologies and best practices that

12

enhance the protection of health information by all holders

13

of individually identifiable health information.

14

(4)  Improving the secure electronic exchange of health

15

information.

16

(5)  Improvement and expansion of the use of health

17

information technology by public health departments.

18

(6)  Providing technical assistance for the development

19

and dissemination of solutions to barriers to the exchange of

20

electronic health information.

21

(7)  Promoting effective strategies to adopt and utilize

22

health information technology in medically underserved

23

communities.

24

(8)  Assisting patients in utilizing health information

25

technology.

26

(d)  Loans.--Loans may be used for the following activities:

27

(1)  The purchase by health care providers and health

28

care facilities of qualified electronic health record

29

technology.

30

(2)  Enhancing the utilization of qualified electronic

- 17 -

 


1

health record that may include costs associated with

2

upgrading health information technology so that it meets

3

criteria for a qualified electronic health record technology.

4

(3)  Training personnel in the use of qualified

5

electronic health record technology.

6

(4)  Improving the secure electronic exchange of health

7

information.

8

(5)  Purchasing clinical decision support systems.

9

(e)  Limitations.--

10

(1)  The amount of a loan to a health care facility or

11

health care provider may not exceed:

12

(i)  $1,000,000 for a health care facility.

13

(ii)  $50,000 for a health care provider.

14

(2)  A grant under this subsection shall require a

15

matching commitment of 20% of the grant or loan which can be

16

in the form of cash or equivalent in-kind capital or

17

services.

18

(3)  No less than 25% of available funds shall be used

19

for loans to health care providers in counties of the fourth,

20

fifth, sixth, seventh or eighth class.

21

(4)  No less than 15% of available funds shall be used

22

for loans to health care providers with 50 or fewer

23

practicing physicians.

24

(f)  Loan requirement.--A loan made under this section shall

25

require all of the following:

26

(1)  Have an interest rate that does not exceed the

27

market interest rate.

28

(2)  Require the principal and interest payments on each

29

loan to commence not later than one year after the date the

30

loan was awarded.

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1

(3)  Require each loan to be fully amortized no later

2

than ten years after the date of the loan.

3

(g)  Health information technology regional extension

4

centers.--Nothing in this section shall prevent a health care

5

provider or health care facility from using a loan received

6

under this section to contract for services provided by a health

7

information technology regional extension center.

8

Section 503.  Fund.

9

(a)  Establishment.--A fund is established in the State

<--

10

Treasury to be known as the Health Information Technology Fund.

11

The following shall be deposited in the fund:

12

(1)  Money appropriated to the fund by the General

13

Assembly.

14

(2)  Grants and loans received under the American

15

Recovery and Reinvestment Act of 2009 (Public Law 111-5, 123

16

Stat. 115) or other Federal law.

17

(3)  Earnings derived from the investment of the money in

18

the fund after deducting investment expenses.

19

(4)  Loan repayments of principal and interest.

20

(5)  Funds derived from any other source. 

21

Section 504.  Application.

22

(a)  Submission.--In order to receive a loan or grant under

23

this chapter, a health care facility or health care provider

24

center shall submit an application in a form and manner

25

prescribed by the department.

26

(b)  Requirements.--An application submitted under subsection

27

(a) shall set forth the manner in which the health information

28

technology system will do the following:

29

(1)  Comply with all criteria adopted by the National

30

Coordinator.

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1

(2)  Protect privacy and security of health information.

2

(3)  Maintain and provide permitted access to health

3

information.

4

(4)  Improve the quality of health care by reducing

5

health care costs, serious preventable adverse events,

6

medical errors, inappropriate care and incomplete information

7

and the coordination of care and information among health

8

care providers, health insurers and other entities.

9

(5)  Ensure interoperability with other systems and

10

health care providers.

11

(6)  Provide consumer access to personal medical

12

information.

13

(7)  Comply with all Federal and State laws and

14

regulations relating to security and notification of any

15

breach of electronic medical records.

16

(8)  Ensure that the health care provider or health care

17

facility will become a meaningful user, as determined by the

18

Centers for Medicare and Medicaid Services, of a qualified

19

electronic health record.

20

Section 505.  Duties of department.

21

(a)  Duties.--The department shall:

22

(1)  Administer the health information technology program

23

to provide grants and loans to eligible health care providers

24

and health care facilities.

25

(2)  Award grants and loans in all geographic areas of

26

this Commonwealth.

27

(3)  Require the use of standards for health information

28

technology that are consistent with those developed by the

29

National Coordinator and the Centers for Medicare and

30

Medicaid Services, when applicable.

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1

(4)  Develop a grant and loan application form with input

2

from the Pennsylvania Health Information Exchange Authority,

3

the Department of Public Welfare, the Insurance Department,

4

the Department of Health and the Governor's Office.

5

(5)  Develop the criteria for awards of a grant and loan

6

with input from the Pennsylvania Health Information Exchange

7

Authority, the Department of Public Welfare, the Insurance

8

Department, the Department of Health and the Governor's

9

Office.

10

(6)  Provide a loan application form within 90 days of

11

the effective date of this section.

12

(7)  Ensure that health information technology policies

13

and programs of the department are coordinated with the

14

Pennsylvania Health Information Exchange Authority, the

15

Department of Public Welfare, the Department of Health, the

16

Governor's Office of Health Care Reform and other executive

17

branch agencies with Federal agencies.

18

(8)  Share appropriate data relating to the use of health

19

information technology systems with the Pennsylvania Health

20

Information Exchange Authority, the Department of Public

21

Welfare, the Health Care Cost Containment Council, the

22

Patient Safety Authority and other State agencies. Data

23

collected by a State agency relating to the operation of

24

health information technology systems in this Commonwealth

25

shall be shared with the department.

26

(9)  Give preference to applications which provide health

27

information technology systems that link multiple health care

28

providers and which provide direct patient access to health

29

care information.

30

(10)  Audit loans awarded under this act.

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1

(11)  Provide ongoing assessment of the benefits and

2

costs of health information technology systems, including

3

information relating to reduction in medical errors,

4

reduction in physician visits, economic impact, efficiencies

5

and other information.

6

(12)  Develop a public information program to inform the

7

public of the efficiency and safety advantage of health

8

information technology.

9

(b)  Exceptions.--Federal grants or loans for health

10

information technology shall be administered under the

11

conditions and requirements in the grant.

12

Section 506.  Accountability.

13

(a)  Information required.--Within one year of the award of a

14

loan under this act, the recipient shall provide all of the

15

following to the department:

16

(1)  A report on the status of the strategic plan and the

17

development of the health information technology system.

18

(2)  An accounting of the expenditure of funds from the

19

loan and from other sources.

20

(3)  A report on any reductions in medical errors,

21

increases in efficiency and advances in the delivery of

22

patient-centered medical care.

23

(b)  Annual report.--The department shall submit an annual

24

report to the chair and minority chair of the Banking and

25

Insurance Committee of the Senate and the chair and minority

26

chair of the Insurance Committee of the House of

27

Representatives, which report shall include the number and

28

amount of grants and loans awarded, a description of the system

29

being funded, total amount of funds spent and the projected

30

impact on the delivery of health care.

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1

CHAPTER 20

2

MISCELLANEOUS

3

Section 2001.  Effective date.

4

This act shall take effect in 60 days January 19, 2011.

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