| 1 | A bill to be entitled |
| 2 | An act relating to medical malpractice insurance; creating |
| 3 | the Enterprise Act for Patient Protection and Provider |
| 4 | Liability; providing legislative findings; amending s. |
| 5 | 458.320, F.S.; requiring a licensed physician who is |
| 6 | covered for medical negligence claims by a hospital that |
| 7 | assumes liability under the act to prominently post notice |
| 8 | or provide a written statement to patients; requiring a |
| 9 | licensed physician who meets certain requirements for |
| 10 | payment or settlement of a medical malpractice claim and |
| 11 | who is covered for medical negligence claims by a hospital |
| 12 | that assumes liability under the act to prominently post |
| 13 | notice or provide a written statement to patients; |
| 14 | amending s. 459.0085, F.S.; requiring a licensed |
| 15 | osteopathic physician who is covered for medical |
| 16 | negligence claims by a hospital that assumes liability |
| 17 | under the act to prominently post notice or provide a |
| 18 | written statement to patients; requiring a licensee of |
| 19 | osteopathic medicine who meets certain requirements for |
| 20 | payment or settlement of a medical malpractice claim and |
| 21 | who is covered for medical negligence claims by a hospital |
| 22 | that assumes liability under the act to prominently post |
| 23 | notice or provide a written statement to patients; |
| 24 | creating s. 627.41485, F.S.; authorizing insurers to offer |
| 25 | liability insurance coverage to physicians which has an |
| 26 | exclusion for certain acts of medical negligence under |
| 27 | certain conditions; authorizing the Department of |
| 28 | Financial Services to adopt rules; amending s. 766.316, |
| 29 | F.S.; requiring hospitals that assume liability for |
| 30 | affected physicians under the act to provide notice to |
| 31 | obstetrical patients regarding the limited no-fault |
| 32 | alternative to birth-related neurological injuries; |
| 33 | amending s. 766.110, F.S.; requiring hospitals that assume |
| 34 | liability for acts of medical negligence under the act to |
| 35 | carry insurance; requiring the hospital's policy regarding |
| 36 | medical liability insurance to satisfy certain statutory |
| 37 | financial responsibility requirements; authorizing an |
| 38 | insurer who is authorized to write casualty insurance to |
| 39 | write such coverage; authorizing certain hospitals to |
| 40 | indemnify certain medical staff for legal liability of |
| 41 | loss, damages, or expenses arising from medical negligence |
| 42 | within hospital premises; requiring a hospital to acquire |
| 43 | a policy of professional liability insurance or a fund for |
| 44 | malpractice coverage; requiring an annual certified |
| 45 | financial statement to the Agency for Health Care |
| 46 | Administration; authorizing certain hospitals to charge |
| 47 | physicians a fee for malpractice coverage; preserving a |
| 48 | hospital's ability to indemnify certain medical staff |
| 49 | members; amending s. 766.118, F.S.; providing a cap on |
| 50 | noneconomic damages for eligible hospitals meeting certain |
| 51 | patient safety measures; creating s. 766.401, F.S.; |
| 52 | providing definitions; creating s. 766.402, F.S.; |
| 53 | authorizing an eligible hospital to petition the Agency |
| 54 | for Health Care Administration to enter an order |
| 55 | certifying the hospital as a patient safety facility; |
| 56 | providing requirements for certification as a patient |
| 57 | safety facility; creating s. 766.403, F.S.; providing |
| 58 | requirements for a hospital to demonstrate that it is |
| 59 | engaged in a common enterprise for the care and treatment |
| 60 | of patients; specifying required patient safety measures; |
| 61 | prohibiting a report or document generated under the act |
| 62 | from being admissible or discoverable as evidence; |
| 63 | creating s. 766.404, F.S.; authorizing the agency to enter |
| 64 | an order certifying a hospital as a patient safety |
| 65 | facility and providing that the hospital bears liability |
| 66 | for acts of medical negligence by certain physicians and |
| 67 | practitioners; specifying a licensed facility as bearing |
| 68 | sole and exclusive liability for medical negligence by |
| 69 | certain physicians and practitioners under certain |
| 70 | circumstances in actions for personal injury or wrongful |
| 71 | death; providing that certain persons or entities are not |
| 72 | liable for medically negligent acts occurring in a |
| 73 | certified patient safety facility; requiring that an |
| 74 | affected practitioner prominently post notice regarding |
| 75 | exemption from personal liability; requiring an affected |
| 76 | physician who is covered by an enterprise plan in a |
| 77 | licensed facility that receives sovereign immunity to |
| 78 | prominently post notice regarding exemption from personal |
| 79 | liability; providing that an agency order certifying |
| 80 | approval of an enterprise plan is evidence of a hospital's |
| 81 | compliance with applicable patient safety requirements; |
| 82 | providing circumstances in which notice is not required; |
| 83 | providing that the order certifying approval of an |
| 84 | enterprise plan applies prospectively to causes of action |
| 85 | for medical negligence; authorizing the agency to conduct |
| 86 | onsite examinations of a licensed facility; providing |
| 87 | circumstances under which the agency may revoke its order |
| 88 | certifying approval of an enterprise plan; providing that |
| 89 | an employee or agent of a certified patient safety |
| 90 | facility may not be joined as a defendant in an action for |
| 91 | medical negligence; requiring an affected practitioner to |
| 92 | cooperate in good faith in an investigation of a claim for |
| 93 | medical malpractice; providing a cause of action for |
| 94 | failure of a physician to act in good faith; providing |
| 95 | that strict liability or liability without fault is not |
| 96 | imposed for medical incidents that occur in the affected |
| 97 | facility; providing requirements that a claimant must |
| 98 | prove to demonstrate medical negligence by an employee, |
| 99 | agent, or medical staff of a licensed facility; providing |
| 100 | that the act does not create an independent cause of |
| 101 | action or waive sovereign immunity; creating s. 766.405, |
| 102 | F.S.; requiring an eligible hospital to execute an |
| 103 | enterprise plan; requiring certain conditions to be |
| 104 | contained within an enterprise plan; creating s. 766.406, |
| 105 | F.S.; requiring a certified patient safety facility to |
| 106 | report medical incidents occurring on its premises and |
| 107 | adverse findings of medical negligence to the Department |
| 108 | of Health; requiring certified patient safety facilities |
| 109 | to perform certain peer review functions; creating s. |
| 110 | 766.407, F.S.; providing that an enterprise plan may |
| 111 | provide clinical privileges to certain persons; requiring |
| 112 | certain organizations to share in the cost of omnibus |
| 113 | medical liability insurance premiums subject to certain |
| 114 | conditions; authorizing a licensed facility to impose a |
| 115 | reasonable assessment against an affected practitioner who |
| 116 | commits medical negligence; providing for the revocation |
| 117 | of clinical privileges for failure to pay the assessment; |
| 118 | exempting certain employees and agents from such |
| 119 | assessments; creating s. 766.408, F.S.; requiring a |
| 120 | certified patient safety facility to submit an annual |
| 121 | report to the agency and the Legislature; providing |
| 122 | requirements for the annual report; providing that the |
| 123 | annual report may include certain information from the |
| 124 | Office of Insurance Regulation within the Department of |
| 125 | Financial Services; providing that the annual report is |
| 126 | subject to public records requirements, but is not |
| 127 | admissible as evidence in a legal proceeding; creating s. |
| 128 | 766.409, F.S.; authorizing certain teaching hospitals and |
| 129 | eligible hospitals to petition the agency for |
| 130 | certification; providing criteria for determining |
| 131 | noneconomic, economic, and future economic damages |
| 132 | recoverable in actions arising from medical negligence; |
| 133 | providing for application of limitations on damages for |
| 134 | eligible hospitals that are certified for compliance with |
| 135 | certain patient safety measures; authorizing the agency to |
| 136 | conduct onsite examinations of certified eligible |
| 137 | hospitals; authorizing the agency to revoke its order |
| 138 | certifying approval of an enterprise plan; providing that |
| 139 | an agency order certifying approval of an enterprise plan |
| 140 | is evidence of a hospital's compliance with applicable |
| 141 | patient safety requirements; providing that evidence of |
| 142 | noncompliance is inadmissible in any action for medical |
| 143 | malpractice; providing that entry of the agency's order |
| 144 | does not impose enterprise liability on the licensed |
| 145 | facility for acts or omissions of medical negligence; |
| 146 | providing that a hospital may not be approved for |
| 147 | certification for both enterprise liability and |
| 148 | limitations on damages; creating s. 766.410, F.S.; |
| 149 | providing rulemaking authority; amending s. 768.28, F.S.; |
| 150 | providing limitations on payment of a claim or judgment |
| 151 | for an action for medical negligence within a certified |
| 152 | patient safety facility that is covered by sovereign |
| 153 | immunity; providing definitions; providing that a |
| 154 | certified patient safety facility is an agent of a state |
| 155 | university board of trustees to the extent that the |
| 156 | licensed facility is solely liable for acts of medical |
| 157 | negligence of physicians providing health care services |
| 158 | within the licensed facility; specifying that certain |
| 159 | certified patient safety facilities are agents of a state |
| 160 | university board of trustees under certain circumstances; |
| 161 | authorizing licensed facilities to secure limits of |
| 162 | liability protection from certain self-insurance programs; |
| 163 | providing requirements for commencing an action for |
| 164 | certain medical negligence; providing procedures; |
| 165 | providing limitations; providing for severability; |
| 166 | providing for broad statutory view of the act; providing |
| 167 | for self-execution of the act; providing an effective |
| 168 | date. |
| 169 |
|
| 170 | Be It Enacted by the Legislature of the State of Florida: |
| 171 |
|
| 172 | Section 1. Popular name.--This act may be cited as the |
| 173 | "Enterprise Act for Patient Protection and Provider Liability." |
| 174 | Section 2. Legislative findings.-- |
| 175 | (1) The Legislature finds that this state is in the midst |
| 176 | of a prolonged medical malpractice insurance crisis that has |
| 177 | serious adverse effects on patients, practitioners, licensed |
| 178 | healthcare facilities, and all residents of this state. |
| 179 | (2) The Legislature finds that hospitals are central |
| 180 | components of the modern health care delivery system. |
| 181 | (3) The Legislature finds that many of the most serious |
| 182 | incidents of medical negligence occur in hospitals, where the |
| 183 | most seriously ill patients are treated, and where surgical |
| 184 | procedures are performed. |
| 185 | (4) The Legislature finds that modern hospitals are |
| 186 | complex organizations, that medical care and treatment in |
| 187 | hospitals is a complex process, and that, increasingly, medical |
| 188 | care and treatment in hospitals is a common enterprise involving |
| 189 | an array of responsible employees, agents, and other persons, |
| 190 | such as physicians, who are authorized to exercise clinical |
| 191 | privileges within the premises. |
| 192 | (5) The Legislature finds that an increasing number of |
| 193 | medical incidents in hospitals involve a combination of acts and |
| 194 | omissions by employees, agents, and other persons, such as |
| 195 | physicians, who are authorized to exercise clinical privileges |
| 196 | within the premises. |
| 197 | (6) The Legislature finds that the medical malpractice |
| 198 | insurance crisis in this state can be alleviated by the adoption |
| 199 | of innovative approaches for patient protection in hospitals |
| 200 | which can lead to a reduction in medical errors. |
| 201 | (7) The Legislature finds statutory incentives are |
| 202 | necessary to facilitate innovative approaches for patient |
| 203 | protection in hospitals. |
| 204 | (8) The Legislature finds that an enterprise approach to |
| 205 | patient protection and provider liability in hospitals will lead |
| 206 | to a reduction in the frequency and severity of incidents of |
| 207 | medical malpractice in hospitals. |
| 208 | (9) The Legislature finds that a reduction in the |
| 209 | frequency and severity of incidents of medical malpractice in |
| 210 | hospitals will reduce attorney's fees and other expenses |
| 211 | inherent in the medical liability system. |
| 212 | (10) The Legislature finds that making high-quality health |
| 213 | care available to the residents of this state is an overwhelming |
| 214 | public necessity. |
| 215 | (11) The Legislature finds that medical education in this |
| 216 | state is an overwhelming public necessity. |
| 217 | (12) The Legislature finds that statutory teaching |
| 218 | hospitals and hospitals owned by and operated by universities |
| 219 | that maintain accredited medical schools are essential for high- |
| 220 | quality medical care and medical education in this state. |
| 221 | (13) The Legislature finds that the critical mission of |
| 222 | statutory teaching hospitals and hospitals owned and operated by |
| 223 | universities that maintain accredited medical schools is |
| 224 | severely undermined by the ongoing medical malpractice crisis. |
| 225 | (14) The Legislature finds that statutory teaching |
| 226 | hospitals and hospitals owned and operated by universities that |
| 227 | maintain accredited medical schools are appropriate health care |
| 228 | facilities for the implementation of innovative approaches to |
| 229 | patient protection and provider liability. |
| 230 | (15) The Legislature finds an overwhelming public |
| 231 | necessity to impose reasonable limitations on actions for |
| 232 | medical malpractice against statutory teaching hospitals and |
| 233 | hospitals that are owned and operated by universities that |
| 234 | maintain accredited medical schools, in furtherance of the |
| 235 | critical public interest in promoting access to high-quality |
| 236 | medical care, medical education, and innovative approaches to |
| 237 | patient protection. |
| 238 | (16) The Legislature finds an overwhelming public |
| 239 | necessity for statutory teaching hospitals and hospitals owned |
| 240 | and operated by universities that maintain accredited medical |
| 241 | schools to implement innovative measures for patient protection |
| 242 | and provider liability in order to generate empirical data for |
| 243 | state policymakers on the effectiveness of these measures. Such |
| 244 | data may lead to broader application of these measures in a |
| 245 | wider array of hospitals after a reasonable period of evaluation |
| 246 | and review. |
| 247 | (17) The Legislature finds an overwhelming public |
| 248 | necessity to promote the academic mission of statutory teaching |
| 249 | hospitals and hospitals owned and operated by universities that |
| 250 | maintain accredited medical schools. Furthermore, the |
| 251 | Legislature finds that the academic mission of these medical |
| 252 | facilities is materially enhanced by statutory authority for the |
| 253 | implementation of innovative approaches to patient protection |
| 254 | and provider liability. Such approaches can be carefully studied |
| 255 | and learned by medical students, medical school faculty, and |
| 256 | affiliated physicians in appropriate clinical settings, thereby |
| 257 | enlarging the body of knowledge concerning patient protection |
| 258 | and provider liability which is essential for advancement of |
| 259 | patient safety, reduction of expenses inherent in the medical |
| 260 | liability system, and curtailment of the medical malpractice |
| 261 | insurance crisis in this state. |
| 262 | Section 3. Paragraphs (f) and (g) of subsection (5) of |
| 263 | section 458.320, Florida Statutes, are amended to read: |
| 264 | 458.320 Financial responsibility.-- |
| 265 | (5) The requirements of subsections (1), (2), and (3) do |
| 266 | not apply to: |
| 267 | (f) Any person holding an active license under this |
| 268 | chapter who meets all of the following criteria: |
| 269 | 1. The licensee has held an active license to practice in |
| 270 | this state or another state or some combination thereof for more |
| 271 | than 15 years. |
| 272 | 2. The licensee has either retired from the practice of |
| 273 | medicine or maintains a part-time practice of no more than 1,000 |
| 274 | patient contact hours per year. |
| 275 | 3. The licensee has had no more than two claims for |
| 276 | medical malpractice resulting in an indemnity exceeding $25,000 |
| 277 | within the previous 5-year period. |
| 278 | 4. The licensee has not been convicted of, or pled guilty |
| 279 | or nolo contendere to, any criminal violation specified in this |
| 280 | chapter or the medical practice act of any other state. |
| 281 | 5. The licensee has not been subject within the last 10 |
| 282 | years of practice to license revocation or suspension for any |
| 283 | period of time; probation for a period of 3 years or longer; or |
| 284 | a fine of $500 or more for a violation of this chapter or the |
| 285 | medical practice act of another jurisdiction. The regulatory |
| 286 | agency's acceptance of a physician's relinquishment of a |
| 287 | license, stipulation, consent order, or other settlement, |
| 288 | offered in response to or in anticipation of the filing of |
| 289 | administrative charges against the physician's license, |
| 290 | constitutes action against the physician's license for the |
| 291 | purposes of this paragraph. |
| 292 | 6. The licensee has submitted a form supplying necessary |
| 293 | information as required by the department and an affidavit |
| 294 | affirming compliance with this paragraph. |
| 295 | 7. The licensee must submit biennially to the department |
| 296 | certification stating compliance with the provisions of this |
| 297 | paragraph. The licensee must, upon request, demonstrate to the |
| 298 | department information verifying compliance with this paragraph. |
| 299 |
|
| 300 | A licensee who meets the requirements of this paragraph must |
| 301 | post notice in the form of a sign prominently displayed in the |
| 302 | reception area and clearly noticeable by all patients or provide |
| 303 | a written statement to any person to whom medical services are |
| 304 | being provided. The sign or statement must read as follows: |
| 305 | "Under Florida law, physicians are generally required to carry |
| 306 | medical malpractice insurance or otherwise demonstrate financial |
| 307 | responsibility to cover potential claims for medical |
| 308 | malpractice. However, certain part-time physicians who meet |
| 309 | state requirements are exempt from the financial responsibility |
| 310 | law. YOUR DOCTOR MEETS THESE REQUIREMENTS AND HAS DECIDED NOT TO |
| 311 | CARRY MEDICAL MALPRACTICE INSURANCE. This notice is provided |
| 312 | pursuant to Florida law." In addition, a licensee who is covered |
| 313 | for claims of medical negligence arising from care and treatment |
| 314 | of patients in a hospital that assumes sole and exclusive |
| 315 | liability for all such claims pursuant to the Enterprise Act for |
| 316 | Patient Protection and Provider Liability, inclusive of ss. |
| 317 | 766.401-766.409, shall post notice in the form of a sign |
| 318 | prominently displayed in the reception area and clearly |
| 319 | noticeable by all patients or provide a written statement to any |
| 320 | person for whom the physician may provide medical care and |
| 321 | treatment in any such hospital in accordance with the |
| 322 | requirements of s. 766.404. |
| 323 | (g) Any person holding an active license under this |
| 324 | chapter who agrees to meet all of the following criteria: |
| 325 | 1. Upon the entry of an adverse final judgment arising |
| 326 | from a medical malpractice arbitration award, from a claim of |
| 327 | medical malpractice either in contract or tort, or from |
| 328 | noncompliance with the terms of a settlement agreement arising |
| 329 | from a claim of medical malpractice either in contract or tort, |
| 330 | the licensee shall pay the judgment creditor the lesser of the |
| 331 | entire amount of the judgment with all accrued interest or |
| 332 | either $100,000, if the physician is licensed pursuant to this |
| 333 | chapter but does not maintain hospital staff privileges, or |
| 334 | $250,000, if the physician is licensed pursuant to this chapter |
| 335 | and maintains hospital staff privileges, within 60 days after |
| 336 | the date such judgment became final and subject to execution, |
| 337 | unless otherwise mutually agreed to in writing by the parties. |
| 338 | Such adverse final judgment shall include any cross-claim, |
| 339 | counterclaim, or claim for indemnity or contribution arising |
| 340 | from the claim of medical malpractice. Upon notification of the |
| 341 | existence of an unsatisfied judgment or payment pursuant to this |
| 342 | subparagraph, the department shall notify the licensee by |
| 343 | certified mail that he or she shall be subject to disciplinary |
| 344 | action unless, within 30 days from the date of mailing, he or |
| 345 | she either: |
| 346 | a. Shows proof that the unsatisfied judgment has been paid |
| 347 | in the amount specified in this subparagraph; or |
| 348 | b. Furnishes the department with a copy of a timely filed |
| 349 | notice of appeal and either: |
| 350 | (I) A copy of a supersedeas bond properly posted in the |
| 351 | amount required by law; or |
| 352 | (II) An order from a court of competent jurisdiction |
| 353 | staying execution on the final judgment pending disposition of |
| 354 | the appeal. |
| 355 | 2. The Department of Health shall issue an emergency order |
| 356 | suspending the license of any licensee who, after 30 days |
| 357 | following receipt of a notice from the Department of Health, has |
| 358 | failed to: satisfy a medical malpractice claim against him or |
| 359 | her; furnish the Department of Health a copy of a timely filed |
| 360 | notice of appeal; furnish the Department of Health a copy of a |
| 361 | supersedeas bond properly posted in the amount required by law; |
| 362 | or furnish the Department of Health an order from a court of |
| 363 | competent jurisdiction staying execution on the final judgment |
| 364 | pending disposition of the appeal. |
| 365 | 3. Upon the next meeting of the probable cause panel of |
| 366 | the board following 30 days after the date of mailing the notice |
| 367 | of disciplinary action to the licensee, the panel shall make a |
| 368 | determination of whether probable cause exists to take |
| 369 | disciplinary action against the licensee pursuant to |
| 370 | subparagraph 1. |
| 371 | 4. If the board determines that the factual requirements |
| 372 | of subparagraph 1. are met, it shall take disciplinary action as |
| 373 | it deems appropriate against the licensee. Such disciplinary |
| 374 | action shall include, at a minimum, probation of the license |
| 375 | with the restriction that the licensee must make payments to the |
| 376 | judgment creditor on a schedule determined by the board to be |
| 377 | reasonable and within the financial capability of the physician. |
| 378 | Notwithstanding any other disciplinary penalty imposed, the |
| 379 | disciplinary penalty may include suspension of the license for a |
| 380 | period not to exceed 5 years. In the event that an agreement to |
| 381 | satisfy a judgment has been met, the board shall remove any |
| 382 | restriction on the license. |
| 383 | 5. The licensee has completed a form supplying necessary |
| 384 | information as required by the department. |
| 385 |
|
| 386 | A licensee who meets the requirements of this paragraph shall be |
| 387 | required either to post notice in the form of a sign prominently |
| 388 | displayed in the reception area and clearly noticeable by all |
| 389 | patients or to provide a written statement to any person to whom |
| 390 | medical services are being provided. Such sign or statement |
| 391 | shall state: "Under Florida law, physicians are generally |
| 392 | required to carry medical malpractice insurance or otherwise |
| 393 | demonstrate financial responsibility to cover potential claims |
| 394 | for medical malpractice. YOUR DOCTOR HAS DECIDED NOT TO CARRY |
| 395 | MEDICAL MALPRACTICE INSURANCE. This is permitted under Florida |
| 396 | law subject to certain conditions. Florida law imposes penalties |
| 397 | against noninsured physicians who fail to satisfy adverse |
| 398 | judgments arising from claims of medical malpractice. This |
| 399 | notice is provided pursuant to Florida law." In addition, a |
| 400 | licensee who meets the requirements of this paragraph and who is |
| 401 | covered for claims of medical negligence arising from care and |
| 402 | treatment of patients in a hospital that assumes sole and |
| 403 | exclusive liability for all such claims pursuant to the |
| 404 | Enterprise Act for Patient Protection and Provider Liability, |
| 405 | inclusive of ss. 766.401-766.409, shall post notice in the form |
| 406 | of a sign prominently displayed in the reception area and |
| 407 | clearly noticeable by all patients or provide a written |
| 408 | statement to any person for whom the physician may provide |
| 409 | medical care and treatment in any such hospital. The sign or |
| 410 | statement must adhere to the requirements of s. 766.404. |
| 411 | Section 4. Paragraphs (f) and (g) of subsection (5) of |
| 412 | section 459.0085, Florida Statutes, are amended to read: |
| 413 | 459.0085 Financial responsibility.-- |
| 414 | (5) The requirements of subsections (1), (2), and (3) do |
| 415 | not apply to: |
| 416 | (f) Any person holding an active license under this |
| 417 | chapter who meets all of the following criteria: |
| 418 | 1. The licensee has held an active license to practice in |
| 419 | this state or another state or some combination thereof for more |
| 420 | than 15 years. |
| 421 | 2. The licensee has either retired from the practice of |
| 422 | osteopathic medicine or maintains a part-time practice of |
| 423 | osteopathic medicine of no more than 1,000 patient contact hours |
| 424 | per year. |
| 425 | 3. The licensee has had no more than two claims for |
| 426 | medical malpractice resulting in an indemnity exceeding $25,000 |
| 427 | within the previous 5-year period. |
| 428 | 4. The licensee has not been convicted of, or pled guilty |
| 429 | or nolo contendere to, any criminal violation specified in this |
| 430 | chapter or the practice act of any other state. |
| 431 | 5. The licensee has not been subject within the last 10 |
| 432 | years of practice to license revocation or suspension for any |
| 433 | period of time, probation for a period of 3 years or longer, or |
| 434 | a fine of $500 or more for a violation of this chapter or the |
| 435 | medical practice act of another jurisdiction. The regulatory |
| 436 | agency's acceptance of an osteopathic physician's relinquishment |
| 437 | of a license, stipulation, consent order, or other settlement, |
| 438 | offered in response to or in anticipation of the filing of |
| 439 | administrative charges against the osteopathic physician's |
| 440 | license, constitutes action against the physician's license for |
| 441 | the purposes of this paragraph. |
| 442 | 6. The licensee has submitted a form supplying necessary |
| 443 | information as required by the department and an affidavit |
| 444 | affirming compliance with this paragraph. |
| 445 | 7. The licensee must submit biennially to the department a |
| 446 | certification stating compliance with this paragraph. The |
| 447 | licensee must, upon request, demonstrate to the department |
| 448 | information verifying compliance with this paragraph. |
| 449 |
|
| 450 | A licensee who meets the requirements of this paragraph must |
| 451 | post notice in the form of a sign prominently displayed in the |
| 452 | reception area and clearly noticeable by all patients or provide |
| 453 | a written statement to any person to whom medical services are |
| 454 | being provided. The sign or statement must read as follows: |
| 455 | "Under Florida law, osteopathic physicians are generally |
| 456 | required to carry medical malpractice insurance or otherwise |
| 457 | demonstrate financial responsibility to cover potential claims |
| 458 | for medical malpractice. However, certain part-time osteopathic |
| 459 | physicians who meet state requirements are exempt from the |
| 460 | financial responsibility law. YOUR OSTEOPATHIC PHYSICIAN MEETS |
| 461 | THESE REQUIREMENTS AND HAS DECIDED NOT TO CARRY MEDICAL |
| 462 | MALPRACTICE INSURANCE. This notice is provided pursuant to |
| 463 | Florida law." In addition, a licensee who is covered for claims |
| 464 | of medical negligence arising from care and treatment of |
| 465 | patients in a hospital that assumes sole and exclusive liability |
| 466 | for all such claims pursuant to the Enterprise Act for Patient |
| 467 | Protection and Provider Liability, inclusive of ss. 766.401- |
| 468 | 766.409, shall post notice in the form of a sign prominently |
| 469 | displayed in the reception area and clearly noticeable by all |
| 470 | patients or provide a written statement to any person for whom |
| 471 | the osteopathic physician may provide medical care and treatment |
| 472 | in any such hospital in accordance with the requirements of s. |
| 473 | 766.404. |
| 474 | (g) Any person holding an active license under this |
| 475 | chapter who agrees to meet all of the following criteria. |
| 476 | 1. Upon the entry of an adverse final judgment arising |
| 477 | from a medical malpractice arbitration award, from a claim of |
| 478 | medical malpractice either in contract or tort, or from |
| 479 | noncompliance with the terms of a settlement agreement arising |
| 480 | from a claim of medical malpractice either in contract or tort, |
| 481 | the licensee shall pay the judgment creditor the lesser of the |
| 482 | entire amount of the judgment with all accrued interest or |
| 483 | either $100,000, if the osteopathic physician is licensed |
| 484 | pursuant to this chapter but does not maintain hospital staff |
| 485 | privileges, or $250,000, if the osteopathic physician is |
| 486 | licensed pursuant to this chapter and maintains hospital staff |
| 487 | privileges, within 60 days after the date such judgment became |
| 488 | final and subject to execution, unless otherwise mutually agreed |
| 489 | to in writing by the parties. Such adverse final judgment shall |
| 490 | include any cross-claim, counterclaim, or claim for indemnity or |
| 491 | contribution arising from the claim of medical malpractice. Upon |
| 492 | notification of the existence of an unsatisfied judgment or |
| 493 | payment pursuant to this subparagraph, the department shall |
| 494 | notify the licensee by certified mail that he or she shall be |
| 495 | subject to disciplinary action unless, within 30 days from the |
| 496 | date of mailing, the licensee either: |
| 497 | a. Shows proof that the unsatisfied judgment has been paid |
| 498 | in the amount specified in this subparagraph; or |
| 499 | b. Furnishes the department with a copy of a timely filed |
| 500 | notice of appeal and either: |
| 501 | (I) A copy of a supersedeas bond properly posted in the |
| 502 | amount required by law; or |
| 503 | (II) An order from a court of competent jurisdiction |
| 504 | staying execution on the final judgment, pending disposition of |
| 505 | the appeal. |
| 506 | 2. The Department of Health shall issue an emergency order |
| 507 | suspending the license of any licensee who, after 30 days |
| 508 | following receipt of a notice from the Department of Health, has |
| 509 | failed to: satisfy a medical malpractice claim against him or |
| 510 | her; furnish the Department of Health a copy of a timely filed |
| 511 | notice of appeal; furnish the Department of Health a copy of a |
| 512 | supersedeas bond properly posted in the amount required by law; |
| 513 | or furnish the Department of Health an order from a court of |
| 514 | competent jurisdiction staying execution on the final judgment |
| 515 | pending disposition of the appeal. |
| 516 | 3. Upon the next meeting of the probable cause panel of |
| 517 | the board following 30 days after the date of mailing the notice |
| 518 | of disciplinary action to the licensee, the panel shall make a |
| 519 | determination of whether probable cause exists to take |
| 520 | disciplinary action against the licensee pursuant to |
| 521 | subparagraph 1. |
| 522 | 4. If the board determines that the factual requirements |
| 523 | of subparagraph 1. are met, it shall take disciplinary action as |
| 524 | it deems appropriate against the licensee. Such disciplinary |
| 525 | action shall include, at a minimum, probation of the license |
| 526 | with the restriction that the licensee must make payments to the |
| 527 | judgment creditor on a schedule determined by the board to be |
| 528 | reasonable and within the financial capability of the |
| 529 | osteopathic physician. Notwithstanding any other disciplinary |
| 530 | penalty imposed, the disciplinary penalty may include suspension |
| 531 | of the license for a period not to exceed 5 years. In the event |
| 532 | that an agreement to satisfy a judgment has been met, the board |
| 533 | shall remove any restriction on the license. |
| 534 | 5. The licensee has completed a form supplying necessary |
| 535 | information as required by the department. |
| 536 |
|
| 537 | A licensee who meets the requirements of this paragraph shall be |
| 538 | required either to post notice in the form of a sign prominently |
| 539 | displayed in the reception area and clearly noticeable by all |
| 540 | patients or to provide a written statement to any person to whom |
| 541 | medical services are being provided. Such sign or statement |
| 542 | shall state: "Under Florida law, osteopathic physicians are |
| 543 | generally required to carry medical malpractice insurance or |
| 544 | otherwise demonstrate financial responsibility to cover |
| 545 | potential claims for medical malpractice. YOUR OSTEOPATHIC |
| 546 | PHYSICIAN HAS DECIDED NOT TO CARRY MEDICAL MALPRACTICE |
| 547 | INSURANCE. This is permitted under Florida law subject to |
| 548 | certain conditions. Florida law imposes strict penalties against |
| 549 | noninsured osteopathic physicians who fail to satisfy adverse |
| 550 | judgments arising from claims of medical malpractice. This |
| 551 | notice is provided pursuant to Florida law." In addition, a |
| 552 | licensee who meets the requirements of this paragraph and who is |
| 553 | covered for claims of medical negligence arising from care and |
| 554 | treatment of patients in a hospital that assumes sole and |
| 555 | exclusive liability for all such claims pursuant to an |
| 556 | enterprise plan for patient protection and provider liability |
| 557 | under ss. 766.401-766.409, shall post notice in the form of a |
| 558 | sign prominently displayed in the reception area and clearly |
| 559 | noticeable by all patients or provide a written statement to any |
| 560 | person for whom the osteopathic physician may provide medical |
| 561 | care and treatment in any such hospital. The sign or statement |
| 562 | must adhere to the requirements of s. 766.404. |
| 563 | Section 5. Section 627.41485, Florida Statutes, is created |
| 564 | to read: |
| 565 | 627.41485 Medical malpractice insurers; optional coverage |
| 566 | exclusion for insureds who are covered by an enterprise plan for |
| 567 | patient protection and provider liability.-- |
| 568 | (1) An insurer issuing policies of professional liability |
| 569 | coverage for claims arising out of the rendering of, or the |
| 570 | failure to render, medical care or services may make available |
| 571 | to physicians licensed under chapter 458 and to osteopathic |
| 572 | physicians licensed under chapter 459 coverage having an |
| 573 | appropriate exclusion for acts of medical negligence occurring |
| 574 | within: |
| 575 | (a) A certified patient safety facility that bears sole |
| 576 | and exclusive liability for acts of medical negligence pursuant |
| 577 | to the Enterprise Act for Patient Protection and Provider |
| 578 | Liability, inclusive of ss. 766.401-766.409, subject to the |
| 579 | usual underwriting standards; or |
| 580 | (b) A statutory teaching hospital that has agreed to |
| 581 | indemnify the physician or osteopathic physician for legal |
| 582 | liability pursuant to s. 766.110(2)(c), subject to the usual |
| 583 | underwriting standards. |
| 584 | (2) The Department of Financial Services may adopt rules |
| 585 | to administer this section. |
| 586 | Section 6. Section 766.316, Florida Statutes, is amended |
| 587 | to read: |
| 588 | 766.316 Notice to obstetrical patients of participation in |
| 589 | the plan.--Each hospital with a participating physician on its |
| 590 | staff, each hospital that assumes liability for affected |
| 591 | physicians pursuant to the Enterprise Act for Patient Protection |
| 592 | and Provider Liability, inclusive of ss. 766.401-766.409, and |
| 593 | each participating physician, other than residents, assistant |
| 594 | residents, and interns deemed to be participating physicians |
| 595 | under s. 766.314(4)(c), under the Florida Birth-Related |
| 596 | Neurological Injury Compensation Plan shall provide notice to |
| 597 | the obstetrical patients as to the limited no-fault alternative |
| 598 | for birth-related neurological injuries. Such notice shall be |
| 599 | provided on forms furnished by the association and shall include |
| 600 | a clear and concise explanation of a patient's rights and |
| 601 | limitations under the plan. The hospital or the participating |
| 602 | physician may elect to have the patient sign a form |
| 603 | acknowledging receipt of the notice form. Signature of the |
| 604 | patient acknowledging receipt of the notice form raises a |
| 605 | rebuttable presumption that the notice requirements of this |
| 606 | section have been met. Notice need not be given to a patient |
| 607 | when the patient has an emergency medical condition as defined |
| 608 | in s. 395.002(9)(b) or when notice is not practicable. |
| 609 | Section 7. Subsection (2) of section 766.110, Florida |
| 610 | Statutes, is amended to read: |
| 611 | 766.110 Liability of health care facilities.-- |
| 612 | (2)(a) Every hospital licensed under chapter 395 may carry |
| 613 | liability insurance or adequately insure itself in an amount of |
| 614 | not less than $1.5 million per claim, $5 million annual |
| 615 | aggregate to cover all medical injuries to patients resulting |
| 616 | from negligent acts or omissions on the part of those members of |
| 617 | its medical staff who are covered thereby in furtherance of the |
| 618 | requirements of ss. 458.320 and 459.0085. Self-insurance |
| 619 | coverage extended hereunder to a member of a hospital's medical |
| 620 | staff meets the financial responsibility requirements of ss. |
| 621 | 458.320 and 459.0085 if the physician's coverage limits are not |
| 622 | less than the minimum limits established in ss. 458.320 and |
| 623 | 459.0085 and the hospital is a verified trauma center that has |
| 624 | extended self-insurance coverage continuously to members of its |
| 625 | medical staff for activities both inside and outside of the |
| 626 | hospital. Any insurer authorized to write casualty insurance may |
| 627 | make available, but is shall not be required to write, such |
| 628 | coverage. The hospital may assess on an equitable and pro rata |
| 629 | basis the following professional health care providers for a |
| 630 | portion of the total hospital insurance cost for this coverage: |
| 631 | physicians licensed under chapter 458, osteopathic physicians |
| 632 | licensed under chapter 459, podiatric physicians licensed under |
| 633 | chapter 461, dentists licensed under chapter 466, and nurses |
| 634 | licensed under part I of chapter 464. The hospital may provide |
| 635 | for a deductible amount to be applied against any individual |
| 636 | health care provider found liable in a law suit in tort or for |
| 637 | breach of contract. The legislative intent in providing for the |
| 638 | deductible to be applied to individual health care providers |
| 639 | found negligent or in breach of contract is to instill in each |
| 640 | individual health care provider the incentive to avoid the risk |
| 641 | of injury to the fullest extent and ensure that the citizens of |
| 642 | this state receive the highest quality health care obtainable. |
| 643 | (b) Except with regard to hospitals that receive sovereign |
| 644 | immunity under s. 768.28, each hospital licensed under chapter |
| 645 | 395 which assumes sole and exclusive liability for acts of |
| 646 | medical negligence by affected providers pursuant to the |
| 647 | Enterprise Act for Patient Protection and Provider Liability, |
| 648 | inclusive of ss. 766.401-766.409, shall carry liability |
| 649 | insurance or adequately insure itself in an amount not less than |
| 650 | $2.5 million per claim, $7.5 million annual aggregate to cover |
| 651 | all medical injuries to patients resulting from negligent acts |
| 652 | or omissions on the part of affected physicians and |
| 653 | practitioners who are covered by an enterprise plan for patient |
| 654 | protection and provider liability. The hospital's policy of |
| 655 | medical liability insurance or self-insurance must satisfy the |
| 656 | financial responsibility requirements of ss. 458.320(2) and |
| 657 | 459.0085(2) for affected providers. Any authorized insurer as |
| 658 | defined in s. 626.914(2), risk retention group as defined in s. |
| 659 | 627.942, or joint underwriting association established under s. |
| 660 | 627.351(4) that has authority to write casualty insurance may |
| 661 | make available, but is not required to write, such coverage. |
| 662 | (c) Notwithstanding any provision in the Insurance Code to |
| 663 | the contrary, a statutory teaching hospital, as defined in s. |
| 664 | 408.07, other than a hospital that receives sovereign immunity |
| 665 | under s. 768.28, which complies with the patient safety measures |
| 666 | specified in s. 766.403 and all other requirements of s. |
| 667 | 766.409, including approval by the Agency for Health Care |
| 668 | Administration, may agree to indemnify some or all members of |
| 669 | its medical staff, including, but not limited to, physicians |
| 670 | having clinical privileges who are not employees or agents of |
| 671 | the hospital and any organization, association, or group of |
| 672 | persons liable for the negligent acts of such physicians, |
| 673 | whether incorporated or unincorporated, and some or all medical, |
| 674 | nursing, or allied health students affiliated with the hospital, |
| 675 | collectively known as covered persons, other than persons exempt |
| 676 | from liability due to sovereign immunity under s. 768.28, for |
| 677 | legal liability of such covered persons for loss, damages, or |
| 678 | expense arising out of medical negligence within the hospital |
| 679 | premises, as defined in s. 766.401, thereby providing limited |
| 680 | malpractice coverage for such covered persons. Any hospital that |
| 681 | agrees to provide malpractice coverage for covered persons under |
| 682 | this section shall acquire an appropriate policy of professional |
| 683 | liability insurance or establish and maintain a fund from which |
| 684 | such malpractice coverage is provided, in accordance with usual |
| 685 | underwriting standards. Such insurance or fund may be separate |
| 686 | and apart from any insurance or fund maintained by or on behalf |
| 687 | of the hospital or combined in a single policy of insurance or a |
| 688 | fund maintained by or on behalf of the hospital. Any hospital |
| 689 | that provides malpractice coverage to covered persons as defined |
| 690 | in this paragraph through a fund providing any such malpractice |
| 691 | coverage, shall annually provide a certified financial statement |
| 692 | containing actuarial projections as to the soundness of reserves |
| 693 | to the Agency for Health Care Administration. The indemnity |
| 694 | agreements or malpractice coverage provided by this section |
| 695 | shall be in amounts that, at a minimum, meet the financial |
| 696 | responsibility requirements of ss. 458.320 and 459.0085 for |
| 697 | affected providers. Any such indemnity agreement or malpractice |
| 698 | coverage in such amounts satisfies the financial responsibility |
| 699 | requirements of ss. 458.320 and 459.0085 for affected providers. |
| 700 | Any statutory teaching hospital that agrees to indemnify |
| 701 | physicians or other covered persons for medical negligence on |
| 702 | the premises pursuant to this section may charge such physicians |
| 703 | or other covered persons a reasonable fee for malpractice |
| 704 | coverage, notwithstanding any provision in the Insurance Code to |
| 705 | the contrary. Such fee shall be based on appropriate actuarial |
| 706 | criteria. This paragraph does not constitute a waiver of |
| 707 | sovereign immunity under s. 768.28. Nothing in this subsection |
| 708 | impairs a hospital's ability to indemnify member of its medical |
| 709 | staff to the extent such indemnification is allowed by law. |
| 710 | Section 8. Subsections (6) and (7) of section 766.118, |
| 711 | Florida Statutes, are renumbered as subsections (7) and (8), |
| 712 | respectively, and new subsection (6) is added to said section, |
| 713 | to read: |
| 714 | 766.118 Determination of noneconomic damages.-- |
| 715 | (6) LIMITATION ON NONECONOMIC DAMAGES FOR NEGLIGENCE OF |
| 716 | CERTAIN HOSPITALS.--A hospital that has received an order from |
| 717 | the Agency for Health Care Administration pursuant to s. 766.409 |
| 718 | certifying that the facility complies with patient safety |
| 719 | measures specified in s. 766.403 shall be liable for no more |
| 720 | than $500,000 in noneconomic damages, regardless of the number |
| 721 | of claimants or theory of liability, including vicarious |
| 722 | liability, and notwithstanding any other provisions of this |
| 723 | section. |
| 724 | Section 9. Section 766.401, Florida Statutes, is created |
| 725 | to read: |
| 726 | 766.401 Definitions.--As used in this section and ss. |
| 727 | 766.402-766.409, the term: |
| 728 | (1) "Affected facility" means a certified patient safety |
| 729 | facility. |
| 730 | (2) "Affected patient" means a patient of a certified |
| 731 | patient safety facility. |
| 732 | (3) "Affected physician" means a medical staff member who |
| 733 | is covered by an enterprise plan for patient protection and |
| 734 | provider liability in a certified patient safety facility. |
| 735 | (4) "Affected practitioner" means any person, including a |
| 736 | physician, who is credentialed by the eligible hospital to |
| 737 | provide health care services who is covered by an enterprise |
| 738 | plan for patient protection and provider liability in a |
| 739 | certified patient safety facility. |
| 740 | (5) "Agency" means the Agency for Health Care |
| 741 | Administration. |
| 742 | (6) "Certified patient safety facility" means any eligible |
| 743 | hospital that, in accordance with agency order, is solely and |
| 744 | exclusively liable for the medical negligence within the |
| 745 | licensed facility by affected physicians and practitioners who |
| 746 | are employees or agents of an accredited medical school or who |
| 747 | are employees or agents of the hospital. |
| 748 | (7) "Clinical privileges" means the privileges granted to |
| 749 | a physician or other licensed health care practitioner to render |
| 750 | patient care services in a hospital. |
| 751 | (8) "Eligible hospital" or "licensed facility" means: |
| 752 | (a) A statutory teaching hospital as defined by s. 408.07, |
| 753 | which maintains at least seven different accredited graduate |
| 754 | medical education programs and has 100 or more full-time |
| 755 | equivalent resident physicians; or |
| 756 | (b) A hospital licensed in accordance with chapter 395 |
| 757 | which is wholly owned by a university based in this state which |
| 758 | maintains an accredited medical school. |
| 759 | (9) "Employee or agent of an accredited medical school" |
| 760 | means any physician or practitioner who is a full-time employee |
| 761 | or agent of the accredited medical school or who devotes his or |
| 762 | her entire paid professional effort to the accredited medical |
| 763 | school. |
| 764 | (10) "Enterprise plan" means a document adopted by the |
| 765 | governing board of an eligible hospital and the executive |
| 766 | committee of the medical staff of the eligible hospital, however |
| 767 | defined, or the board of trustees of a state university, |
| 768 | manifesting concurrence and setting forth certain rights, |
| 769 | duties, privileges, obligations, and responsibilities of the |
| 770 | health care facility and its medical staff, or its affiliated |
| 771 | medical school, in furtherance of seeking and maintaining status |
| 772 | as a certified patient safety facility. |
| 773 | (11) "Health care provider" or "provider" means: |
| 774 | (a) An eligible hospital. |
| 775 | (b) A physician or physician assistant licensed under |
| 776 | chapter 458. |
| 777 | (c) An osteopathic physician or osteopathic physician |
| 778 | assistant licensed under chapter 459. |
| 779 | (d) A registered nurse, nurse midwife, licensed practical |
| 780 | nurse, or advanced registered nurse practitioner licensed or |
| 781 | registered under part I of chapter 464 or any facility that |
| 782 | employs nurses licensed or registered under part I of chapter |
| 783 | 464 to supply all or part of the care delivered by that |
| 784 | facility. |
| 785 | (e) A health care professional association and its |
| 786 | employees or a corporate medical group and its employees. |
| 787 | (f) Any other medical facility the primary purpose of |
| 788 | which is to deliver human medical diagnostic services or which |
| 789 | delivers nonsurgical human medical treatment, including an |
| 790 | office maintained by a provider. |
| 791 | (g) A free clinic that delivers only medical diagnostic |
| 792 | services or nonsurgical medical treatment free of charge to all |
| 793 | low-income recipients. |
| 794 | (h) Any other health care professional, practitioner, or |
| 795 | provider, including a student enrolled in an accredited program |
| 796 | that prepares the student for licensure as any one of the |
| 797 | professionals listed in this subsection. |
| 798 |
|
| 799 | The term includes any person, organization, or entity that is |
| 800 | vicariously liable under the theory of respondent superior or |
| 801 | any other theory of legal liability for medical negligence |
| 802 | committed by any licensed professional listed in this |
| 803 | subsection. The term also includes any nonprofit corporation |
| 804 | qualified as exempt from federal income taxation under s. 501(a) |
| 805 | of the Internal Revenue Code, and described in s. 501(c) of the |
| 806 | Internal Revenue Code, including any university or medical |
| 807 | school that employs licensed professionals listed in this |
| 808 | subsection or that delivers health care services provided by |
| 809 | licensed professionals listed in this subsection, any federally |
| 810 | funded community health center, and any volunteer corporation or |
| 811 | volunteer health care provider that delivers health care |
| 812 | services. |
| 813 | (12) "Health care practitioner" or "practitioner" means |
| 814 | any person, entity, or organization identified in subsection |
| 815 | (9), except for a hospital. |
| 816 | (13) "Medical incident" or "adverse incident" has the same |
| 817 | meaning as provided in ss. 381.0271, 395.0197, 458.351, and |
| 818 | 459.026. |
| 819 | (14) "Medical negligence" means medical malpractice, |
| 820 | whether grounded in tort or in contract, arising out of the |
| 821 | rendering of or failure to render medical care or services. |
| 822 | (15) "Medical staff" means a physician licensed under |
| 823 | chapter 458 or chapter 459 having clinical privileges and active |
| 824 | status in a licensed facility. The term includes any affected |
| 825 | physician. |
| 826 | (16) "Person" means any individual, partnership, |
| 827 | corporation, association, or governmental unit. |
| 828 | (17) "Premises" means those buildings, beds, and equipment |
| 829 | located at the address of the licensed facility and all other |
| 830 | buildings, beds, and equipment for the provision of hospital, |
| 831 | ambulatory surgical, mobile surgical care, primary care, or |
| 832 | comprehensive health care under the dominion and control of the |
| 833 | licensee, including offices and locations where the licensed |
| 834 | facility provides medical care and treatment to affected |
| 835 | patients. |
| 836 | (18) "Statutory teaching hospital" or "teaching hospital" |
| 837 | has the same meaning as provided in s. 408.07. |
| 838 | (19) "Within the licensed facility" or "within the |
| 839 | premise" means anywhere on the premises of the licensed facility |
| 840 | or the premises of any office, clinic, or ancillary facility |
| 841 | that is owned or leased or controlled by the licensed facility. |
| 842 | Section 10. Section 766.402, Florida Statutes, is created |
| 843 | to read: |
| 844 | 766.402 Agency approval of enterprise plans for patient |
| 845 | protection and provider liability.-- |
| 846 | (1) An eligible hospital in conjunction with the executive |
| 847 | committee of its medical staff or the board of trustees of a |
| 848 | state university, if applicable, that has adopted an enterprise |
| 849 | plan may petition the agency to enter an order certifying |
| 850 | approval of the hospital as a certified patient safety facility. |
| 851 | (2) In accordance with chapter 120, the agency shall enter |
| 852 | an order certifying approval of the certified patient safety |
| 853 | facility upon a showing that, in furtherance of an enterprise |
| 854 | approach to patient protection and provider liability: |
| 855 | (a) The petitioners have established enterprise-wide |
| 856 | safety measures for the care and treatment of patients. |
| 857 | (b) The petitioners satisfy requirements for patient |
| 858 | protection measures, as specified in s. 766.403. |
| 859 | (c) The petitioners acknowledge and agree to enterprise |
| 860 | liability for medical negligence within the premises, as |
| 861 | specified in s. 766.404. |
| 862 | (d) The petitioners have adopted an enterprise plan, as |
| 863 | specified in s. 766.405. |
| 864 | (e) The petitioners satisfy requirements for professional |
| 865 | accountability of affected practitioners, as specified in s. |
| 866 | 766.406. |
| 867 | (f) The petitioners satisfy requirements for financial |
| 868 | accountability of affected practitioners, as specified in s. |
| 869 | 766.407. |
| 870 | (g) The petitioners satisfy all other requirements of ss. |
| 871 | 766.401-766.409. |
| 872 | Section 11. Section 766.403, Florida Statutes, is created |
| 873 | to read: |
| 874 | 766.403 Enterprise-wide patient safety measures.-- |
| 875 | (1) In order to satisfy the requirements of s. |
| 876 | 766.402(2)(a) or s. 766.409, the licensed facility shall: |
| 877 | (a) Have in place a process, either through the facility's |
| 878 | patient safety committee or a similar body, for coordinating the |
| 879 | quality control, risk management, and patient relations |
| 880 | functions of the facility and for reporting to the facility's |
| 881 | governing board at least quarterly regarding such efforts. |
| 882 | (b) Establish within the facility a system for reporting |
| 883 | near misses and agree to submit any information collected to the |
| 884 | Florida Patient Safety Corporation. Such information must be |
| 885 | submitted by the facility and made available by the Patient |
| 886 | Safety Corporation in accordance with s. 381.0271(7). |
| 887 | (c) Design and make available to facility staff, including |
| 888 | medical staff, a patient safety curriculum that provides lecture |
| 889 | and web-based training on recognized patient safety principles, |
| 890 | which may include communication skills training, team |
| 891 | performance assessment and training, risk prevention strategies, |
| 892 | and best practices and evidence based medicine. The licensed |
| 893 | facility shall report annually to the agency the programs |
| 894 | presented. |
| 895 | (d) Implement a program to identify health care providers |
| 896 | on the facility's staff who may be eligible for an early- |
| 897 | intervention program providing additional skills assessment and |
| 898 | training and offer such training to the staff on a voluntary and |
| 899 | confidential basis with established mechanisms to assess program |
| 900 | performance and results. |
| 901 | (e) Implement a simulation-based program for skills |
| 902 | assessment, training, and retraining of a facility's staff in |
| 903 | those tasks and activities that the agency identifies by rule. |
| 904 | (f) Designate a patient advocate who coordinates with |
| 905 | members of the medical staff and the facility's chief medical |
| 906 | officer regarding disclosure of medical incidents to patients. |
| 907 | In addition, the patient advocate shall establish an advisory |
| 908 | panel, consisting of providers, patients or their families, and |
| 909 | other health care consumer or consumer groups to review general |
| 910 | patient safety concerns and other issues related to relations |
| 911 | among and between patients and providers and to identify areas |
| 912 | where additional education and program development may be |
| 913 | appropriate. |
| 914 | (g) Establish a procedure to biennially review the |
| 915 | facility's patient safety program and its compliance with the |
| 916 | requirements of this section. Such review shall be conducted by |
| 917 | an independent patient safety organization as defined in s. |
| 918 | 766.1016(1) or other professional organization approved by the |
| 919 | agency. The organization performing the review shall prepare a |
| 920 | written report with detailed findings and recommendations. The |
| 921 | report shall be forwarded to the facility's risk manager or |
| 922 | patient safety officer, who may make written comments in |
| 923 | response thereto. The report and any written comments shall be |
| 924 | presented to the governing board of the licensed facility. A |
| 925 | copy of the report and any of the facilities' responses to the |
| 926 | findings and recommendations shall be provided to the agency |
| 927 | within 60 days after the date that the governing board reviewed |
| 928 | the report. The report is confidential and exempt from |
| 929 | production or discovery in any civil action. Likewise, the |
| 930 | report, and the information contained therein, is not admissible |
| 931 | as evidence for any purpose in any action for medical |
| 932 | negligence. |
| 933 | (h) Establish a system for the trending and tracking of |
| 934 | quality and patient safety indicators that the agency may |
| 935 | identify by rule, and a method for review of the data at least |
| 936 | semiannually by the facility's patient safety committee. |
| 937 | (i) Provide assistance to affected physicians, upon |
| 938 | request, regarding implementation and evaluation of individual |
| 939 | risk-management, patient-safety, and incident-reporting systems |
| 940 | in clinical settings outside the premises of the licensed |
| 941 | facility. Provision of such assistance may not be the basis for |
| 942 | finding or imposing any liability on the licensed facility for |
| 943 | acts or omissions of the affected physicians in clinical |
| 944 | settings outside the premises of the licensed facility. |
| 945 | (2) This section does not constitute an applicable |
| 946 | standard of care in any action for medical negligence or |
| 947 | otherwise create a private right of action, and evidence of |
| 948 | noncompliance with this section is not admissible for any |
| 949 | purpose in any action for medical negligence against an affected |
| 950 | facility or any other health care provider. |
| 951 | (3) This section does not prohibit the licensed facility |
| 952 | from implementing other measures for promoting patient safety |
| 953 | within the premises. This section does not relieve the licensed |
| 954 | facility from the duty to implement any other patient safety |
| 955 | measure that is required by state law. The Legislature intends |
| 956 | that the patient safety measures specified in this section are |
| 957 | in addition to all other patient safety measures required by |
| 958 | state law, federal law, and applicable accreditation standards |
| 959 | for licensed facilities. |
| 960 | (4) A review, report, or other document created, produced, |
| 961 | delivered, or discussed pursuant to this section is not |
| 962 | discoverable or admissible as evidence in any legal action. |
| 963 | Section 12. Section 766.404, Florida Statutes, is created |
| 964 | to read: |
| 965 | 766.404 Enterprise liability in certain health care |
| 966 | facilities.-- |
| 967 | (1) Subject to the requirements of ss. 766.401-766.409, |
| 968 | the agency may enter an order certifying the petitioner-hospital |
| 969 | as a certified patient safety facility and providing that the |
| 970 | hospital bears sole and exclusive liability for any and all acts |
| 971 | of medical negligence within the licensed facility by affected |
| 972 | physicians and affected practitioners who are employees or |
| 973 | agents of the accredited medical school or employees or agents |
| 974 | of the hospital when such medical negligence causes damage to |
| 975 | affected patients. |
| 976 | (2) In any action for personal injury or wrongful death, |
| 977 | whether in contract or tort or predicated upon a statutory cause |
| 978 | of action, arising out of medical negligence within the premises |
| 979 | resulting in damages to a patient of a certified patient safety |
| 980 | facility, the licensed facility bears sole and exclusive |
| 981 | liability for medical negligence by affected physicians and |
| 982 | affected practitioners who, when the act of medical negligence |
| 983 | occurred, were employees or agents of the accredited medical |
| 984 | school or employees or agents of the hospital. Any such affected |
| 985 | physician or affected practitioner may not be named as defendant |
| 986 | in any such action. This subsection does not impose liability or |
| 987 | confer immunity on any other provider, person, organization, or |
| 988 | entity for acts of medical malpractice committed on any person |
| 989 | in clinical settings other than the premises of the affected |
| 990 | facility. |
| 991 | (3) An affected practitioner shall post an applicable |
| 992 | notice or provide an appropriate written statement as follows: |
| 993 | (a) An affected practitioner shall post notice in the form |
| 994 | of a sign prominently displayed in the reception area and |
| 995 | clearly noticeable by all patients or provide a written |
| 996 | statement to any person to whom medical services are being |
| 997 | provided. The sign or statement must read as follows: "In |
| 998 | general, physicians in the State of Florida are personally |
| 999 | liable for acts of medical negligence, subject to certain |
| 1000 | limitations. However, physicians who perform medical services |
| 1001 | within a certified patient safety facility are exempt from |
| 1002 | personal liability because the licensed hospital bears sole and |
| 1003 | exclusive liability for acts of medical negligence within the |
| 1004 | health care facility pursuant to an administrative order of the |
| 1005 | Agency for Health Care Administration entered in accordance with |
| 1006 | the Enterprise Act for Patient Protection and Provider |
| 1007 | Liability. YOUR DOCTOR HOLDS CLINICAL STAFF PRIVILEGES IN A |
| 1008 | CERTIFIED PATIENT SAFETY FACILITY. UNDER FLORIDA LAW, ANY CLAIM |
| 1009 | FOR MEDICAL NEGLIGENCE WITHIN THE HEALTH CARE FACILITY MUST BE |
| 1010 | INITIATED AGAINST THE HOSPITAL AND NOT AGAINST YOUR DOCTOR, |
| 1011 | BECAUSE THE HOSPITAL IS SOLELY RESPONSIBLE FOR ALL ACTS OF |
| 1012 | PROFESSIONAL NEGLIGENCE WITHIN THE PREMISES. THIS PROVISION DOES |
| 1013 | NOT AFFECT YOUR PHYSICIAN'S LIABILITY FOR ACTS OF MEDICAL |
| 1014 | NEGLIGENCE IN OTHER CLINICAL SETTINGS. IF YOU DO NOT UNDERSTAND, |
| 1015 | PLEASE DISCUSS WITH YOUR DOCTOR BEFORE YOUR CONSULTATION. This |
| 1016 | notice is provided pursuant to Florida law." |
| 1017 | (b) If an affected practitioner is covered by an |
| 1018 | enterprise plan for patient protection and provider liability in |
| 1019 | one or more licensed facilities that receive sovereign immunity, |
| 1020 | and one or more other licensed facilities, the affected |
| 1021 | practitioner shall post notice in the form of a sign prominently |
| 1022 | displayed in the reception area and clearly noticeable by all |
| 1023 | patients or provide a written statement to any person to whom |
| 1024 | medical services are being provided. The sign or statement must |
| 1025 | read as follows: "In general, physicians in the state of Florida |
| 1026 | are personally liable for acts of medical negligence, subject to |
| 1027 | certain limitations such as sovereign immunity. However, |
| 1028 | physicians who perform medical services within a certified |
| 1029 | patient safety facility are exempt from personal liability |
| 1030 | because the licensed hospital bears sole and exclusive liability |
| 1031 | for acts of medical negligence within the affected facility |
| 1032 | pursuant to an administrative order of the Agency for Health |
| 1033 | Care Administration entered in accordance with the Enterprise |
| 1034 | Act for Patient Protection and Provider Liability. YOUR DOCTOR |
| 1035 | HOLDS CLINICAL STAFF PRIVILEGES IN ONE OR MORE CERTIFIED PATIENT |
| 1036 | SAFETY FACILITIES. AT LEAST ONE OF THESE HOSPITALS IS SUBJECT TO |
| 1037 | SOVEREIGN IMMUNITY. UNDER FLORIDA LAW, ANY CLAIM FOR MEDICAL |
| 1038 | NEGLIGENCE WITHIN THE HEALTH CARE FACILITY MUST BE INITIATED |
| 1039 | AGAINST THE HOSPITAL AND NOT AGAINST YOUR DOCTOR, BECAUSE THE |
| 1040 | HOSPITAL IS SOLELY RESPONSIBLE FOR ALL ACTS OF PROFESSIONAL |
| 1041 | NEGLIGENCE WITHIN THE PREMISES. MOREOVER, RECOVERY AGAINST THE |
| 1042 | HOSPITAL MAY BE LIMITED, DUE TO FLORIDA'S SOVEREIGN IMMUNITY |
| 1043 | LAW. THESE PROVISIONS DO NOT AFFECT YOUR PHYSICIAN'S LIABILITY |
| 1044 | FOR ACTS OF MEDICAL NEGLIGENCE IN OTHER CLINICAL SETTINGS. IF |
| 1045 | YOU DO NOT UNDERSTAND, PLEASE DISCUSS WITH YOUR DOCTOR BEFORE |
| 1046 | YOUR CONSULTATION. This notice is provided pursuant to Florida |
| 1047 | law." |
| 1048 | (c) Notice need not be given to a patient when: |
| 1049 | 1. The patient has an emergency medical condition as |
| 1050 | defined in s. 395.002; |
| 1051 | 2. The practitioner is an employee or agent of a |
| 1052 | governmental entity and is immune from liability and suit under |
| 1053 | s. 768.28; or |
| 1054 | 3. Notice is not practicable. |
| 1055 | (d) This subsection is directory in nature. An agency |
| 1056 | order certifying approval of an enterprise plan for patient |
| 1057 | protection and provider liability shall, as a matter of law, |
| 1058 | constitute conclusive evidence that the hospital complies with |
| 1059 | all applicable patient safety requirements of s. 766.403 and all |
| 1060 | other requirements of ss. 766.401-766.409. Evidence of |
| 1061 | noncompliance with s. 766.403 or any other provision of ss. |
| 1062 | 766.401-766.409 may not be admissible for any purpose in any |
| 1063 | action for medical malpractice. Failure to comply with the |
| 1064 | requirements of this subsection does not affect the liabilities |
| 1065 | or immunities conferred by ss. 766.401-766.409. This subsection |
| 1066 | does not give rise to an independent cause of action for |
| 1067 | damages. |
| 1068 | (4) The agency order certifying approval of an enterprise |
| 1069 | plan for patient protection and provider liability applies |
| 1070 | prospectively to causes of action for medical negligence that |
| 1071 | arise on or after the effective date of the order. |
| 1072 | (5) Upon entry of an order approving the petition, the |
| 1073 | agency may conduct onsite examinations of the licensed facility |
| 1074 | to assure continued compliance with the terms and conditions of |
| 1075 | the order. |
| 1076 | (6) The agency order certifying approval of an enterprise |
| 1077 | plan for patient protection remains in effect until revoked. The |
| 1078 | agency shall revoke the order upon the unilateral request of the |
| 1079 | licensed facility, the executive committee of the medical staff, |
| 1080 | or the affiliated medical school, whichever is applicable. The |
| 1081 | agency may revoke the order upon reasonable notice to the |
| 1082 | affected facility that it fails to comply with material |
| 1083 | requirements of ss. 766.401-766.409 or material conditions of |
| 1084 | the order certifying approval of the enterprise plan and further |
| 1085 | upon a determination that the licensed facility has failed to |
| 1086 | cure stated deficiencies upon reasonable notice. An |
| 1087 | administrative order revoking approval of an enterprise plan for |
| 1088 | patient protection and provider liability terminates the plan on |
| 1089 | January 1 of the year following entry of the order or 6 months |
| 1090 | after entry of the order, whichever is longer. Revocation of an |
| 1091 | agency order certifying approval of an enterprise plan for |
| 1092 | patient protection and provider liability applies prospectively |
| 1093 | to causes of action for medical negligence which arise on or |
| 1094 | after the effective date of the termination. |
| 1095 | (7) This section does not exempt a licensed facility from |
| 1096 | liability for acts of medical negligence committed by employees |
| 1097 | and agents thereof; although employees and agents of a certified |
| 1098 | patient safety facility may not be joined as defendants in any |
| 1099 | action for medical negligence because the licensed facility |
| 1100 | bears sole and exclusive liability for acts of medical |
| 1101 | negligence within the premises of the licensed facility, |
| 1102 | including acts of medical negligence by such employees and |
| 1103 | agents. |
| 1104 | (8) Affected practitioners shall cooperate in good faith |
| 1105 | with an affected facility in the investigation and defense of |
| 1106 | any claim for medical negligence. An affected facility shall |
| 1107 | have a cause of action for damages against an affected |
| 1108 | practitioner for bad faith refusal to cooperate in the |
| 1109 | investigation and defense of any claim of medical malpractice |
| 1110 | against the licensed facility. |
| 1111 | (9) Sections 766.401-766.409 do not impose strict |
| 1112 | liability or liability without fault for medical incidents that |
| 1113 | occur within an affected facility. To maintain a cause of action |
| 1114 | against an affected facility pursuant to ss. 766.401-766.409, |
| 1115 | the claimant must allege and prove that an employee or agent of |
| 1116 | the licensed facility, or an affected practitioner who is |
| 1117 | covered by an approved enterprise plan for patient protection |
| 1118 | and provider liability, committed medical negligence within the |
| 1119 | premises of the licensed facility which constitutes medical |
| 1120 | negligence under state law, even though an active tortfeasor is |
| 1121 | not named or joined as a party defendant in the lawsuit. |
| 1122 | (10) Sections 766.401-766.409 do not create an independent |
| 1123 | cause of action against any health care provider and do not |
| 1124 | impose enterprise liability on any health care provider, except |
| 1125 | as expressly provided, and may not be construed to support any |
| 1126 | cause of action other than an action for medical negligence as |
| 1127 | expressly provided against any person, organization, or entity. |
| 1128 | (11) Sections 766.401-766.409 do not waive sovereign |
| 1129 | immunity, except as expressly provided in s. 768.28. |
| 1130 | Section 13. Section 766.405, Florida Statutes, is created |
| 1131 | to read: |
| 1132 | 766.405 Enterprise plans.-- |
| 1133 | (1) It is the intent of the Legislature that enterprise |
| 1134 | plans for patient protection are elective and not mandatory for |
| 1135 | eligible hospitals. It is further the intent of the Legislature |
| 1136 | that the medical staff or affiliated medical school of an |
| 1137 | eligible hospital must concur with the development and |
| 1138 | implementation of an enterprise plan for patient protection and |
| 1139 | provider liability. It is further the intent of the Legislature |
| 1140 | that the licensed facility and medical staff or affiliated |
| 1141 | medical school be accorded wide latitude in formulating |
| 1142 | enterprise plans consistent with the underlying purpose of ss. |
| 1143 | 766.401-766.409 to encourage innovative, systemic measures for |
| 1144 | patient protection and quality assurance in licensed facilities, |
| 1145 | especially in clinical settings where surgery is performed. |
| 1146 | Adoption of an enterprise plan is a necessary condition for |
| 1147 | agency approval of an enterprise plan for a certified patient |
| 1148 | safety facility. |
| 1149 | (2) An eligible hospital and the executive committee of |
| 1150 | its medical staff of the board of trustees of a state |
| 1151 | university, if applicable, shall adopt an enterprise plan as a |
| 1152 | necessary condition to agency approval of a certified patient |
| 1153 | safety facility. An affirmative vote of approval by the |
| 1154 | regularly constituted executive committee of the medical staff, |
| 1155 | however named or constituted, is sufficient to manifest approval |
| 1156 | by the medical staff of the enterprise plan. Once approved, |
| 1157 | affected practitioners are subject to the enterprise plan. The |
| 1158 | plan may be conditioned on agency approval of an enterprise plan |
| 1159 | for patient protection and provider liability for the affected |
| 1160 | facility. The enterprise plan shall be limited to affected |
| 1161 | physicians and affected practitioners who are employees or |
| 1162 | agents of an accredited medical school or who are employees or |
| 1163 | agents of the hospital. At a minimum, the enterprise plan must |
| 1164 | contain provisions covering: |
| 1165 | (a) Compliance with a patient protection plan. |
| 1166 | (b) Internal review of medical incidents. |
| 1167 | (c) Timely reporting of medical incidents to state |
| 1168 | agencies. |
| 1169 | (d) Professional accountability of affected practitioners. |
| 1170 | (e) Financial accountability of affected practitioners. |
| 1171 | (3) This section does not prohibit a patient safety |
| 1172 | facility from including other provisions in the enterprise plan, |
| 1173 | in a separate agreement, as a condition of staff privileges, or |
| 1174 | by way of contract with an organization providing medical staff |
| 1175 | for the licensed facility. |
| 1176 | (4) This section does not limit the power of any licensed |
| 1177 | facility to enter into other agreements with members of its |
| 1178 | medical staff or otherwise to impose restrictions, requirements, |
| 1179 | or conditions on clinical privileges, as authorized by law. |
| 1180 | (5) If multiple campuses of a licensed facility share a |
| 1181 | license, the enterprise plan may be limited to the primary |
| 1182 | campus or the campus with the largest number of beds and, if |
| 1183 | applicable, associated outpatient ancillary facilities. If the |
| 1184 | enterprise plan is so limited, the plan must specify the campus |
| 1185 | and, if applicable, the ancillary facilities that will |
| 1186 | constitute the enterprise. |
| 1187 | Section 14. Section 766.406, Florida Statutes, is created |
| 1188 | to read: |
| 1189 | 766.406 Professional accountability of affected |
| 1190 | practitioners.-- |
| 1191 | (1) A certified patient safety facility shall report |
| 1192 | medical incidents occurring in the affected facility to the |
| 1193 | Department of Health, in accordance with s. 395.0197. |
| 1194 | (2) A certified patient safety facility shall report |
| 1195 | adverse findings of medical negligence or failure to adhere to |
| 1196 | applicable standards of professional responsibility by affected |
| 1197 | practitioners to the Department of Health. |
| 1198 | (3) A certified patient safety facility shall continue to |
| 1199 | perform all peer review functions pursuant to s. 395.0193. |
| 1200 | Section 15. Section 766.407, Florida Statutes, is created |
| 1201 | to read: |
| 1202 | 766.407 Financial accountability of affected |
| 1203 | practitioners.-- |
| 1204 | (1) An enterprise plan may provide that any affected |
| 1205 | member of the medical staff or any affected practitioner having |
| 1206 | clinical privileges, other than an employee of the licensed |
| 1207 | facility, and any organization that contracts with the licensed |
| 1208 | facility to provide practitioners to treat patients within the |
| 1209 | licensed facility, shall share equitably in the cost of omnibus |
| 1210 | medical liability insurance premiums covering the certified |
| 1211 | patient safety facility, similar self-insurance expense, or |
| 1212 | other expenses reasonably related to risk management and |
| 1213 | adjustment of claims of medical negligence. This subsection does |
| 1214 | not permit a licensed facility and any affected practitioner to |
| 1215 | agree on charges for an equitable share of medical liability |
| 1216 | expense based on the number of patients admitted to the hospital |
| 1217 | by individual practitioners, patient revenue for the licensed |
| 1218 | facility generated by individual practitioners, or overall |
| 1219 | profit or loss sustained by the certified patient safety |
| 1220 | facility in a given fiscal period. |
| 1221 | (2) Pursuant to an enterprise plan for patient protection |
| 1222 | and provider liability, a licensed facility may impose a |
| 1223 | reasonable assessment against an affected practitioner that |
| 1224 | commits medical negligence resulting in injury and damages to an |
| 1225 | affected patient of the health care facility, upon a |
| 1226 | determination of failure to adhere to acceptable standards of |
| 1227 | professional responsibility by an internal peer review |
| 1228 | committee. A schedule of assessments, criteria for the levying |
| 1229 | of assessments, procedures for levying assessments, and due |
| 1230 | process rights of an affected practitioner must be agreed to by |
| 1231 | the executive committee of the medical staff or affiliated |
| 1232 | medical school, as applicable, and the licensed facility. The |
| 1233 | legislative intent in providing for assessments against an |
| 1234 | affected physician is to instill in each individual health care |
| 1235 | practitioner the incentive to avoid the risk of injury to the |
| 1236 | fullest extent and ensure that the residents of this state |
| 1237 | receive the highest quality health care obtainable. Failure to |
| 1238 | pay an assessment constitutes grounds for suspension of clinical |
| 1239 | privileges by the licensed facility. Assessments may be enforced |
| 1240 | as bona fide debts in a court of law. The licensed facility may |
| 1241 | exempt its employees and agents from all such assessments. |
| 1242 | Employees and agents of the state, its agencies, and |
| 1243 | subdivisions, as defined by s. 768.28, are exempt from all such |
| 1244 | assessments. |
| 1245 | (3) An assessment levied pursuant to this section is not |
| 1246 | discoverable or admissible as evidence in any legal action. |
| 1247 | Section 16. Section 766.408, Florida Statutes, is created |
| 1248 | to read: |
| 1249 | 766.408 Data collection and reports.-- |
| 1250 | (1) Each certified patient safety facility shall submit an |
| 1251 | annual report to the agency containing information and data |
| 1252 | reasonably required by the agency to evaluate performance and |
| 1253 | effectiveness of the facility's enterprise plan for patient |
| 1254 | protection and provider liability. However, information may not |
| 1255 | be submitted or disclosed in violation of any patient's right to |
| 1256 | privacy under state or federal law. |
| 1257 | (2) The agency shall aggregate information and data |
| 1258 | submitted by all affected facilities and each year, on or before |
| 1259 | March 1, the agency shall submit a report to the Legislature |
| 1260 | that evaluates the performance and effectiveness of the |
| 1261 | enterprise approach to patient safety and provider liability in |
| 1262 | certified patient safety facilities, which reports must include, |
| 1263 | but are not limited to, pertinent data on: |
| 1264 | (a) The number and names of affected facilities; |
| 1265 | (b) The number and types of patient protection measures |
| 1266 | currently in effect in these facilities; |
| 1267 | (c) The number of affected practitioners; |
| 1268 | (d) The number of affected patients; |
| 1269 | (e) The number of surgical procedures by affected |
| 1270 | practitioners on affected patients; |
| 1271 | (f) The number of medical incidents, claims of medical |
| 1272 | malpractice, and claims resulting in indemnity; |
| 1273 | (g) The average time for resolution of contested and |
| 1274 | uncontested claims of medical malpractice; |
| 1275 | (h) The percentage of claims that result in civil trials; |
| 1276 | (i) The percentage of civil trials resulting in adverse |
| 1277 | judgments against affected facilities; |
| 1278 | (j) The number and average size of an indemnity paid to |
| 1279 | claimants; |
| 1280 | (k) The number and average size of assessments imposed on |
| 1281 | affected practitioners; |
| 1282 | (l) The estimated liability expense, inclusive of medical |
| 1283 | liability insurance premiums; and |
| 1284 | (m) The percentage of medical liability expense, inclusive |
| 1285 | of medical liability insurance premiums, which is borne by |
| 1286 | affected practitioners in affected health care facilities. |
| 1287 |
|
| 1288 | Such reports to the Legislature may also include other |
| 1289 | information and data that the agency deems appropriate to gauge |
| 1290 | the cost and benefit of enterprise plans for patient protection |
| 1291 | and provider liability. |
| 1292 | (3) The agency's annual report to the Legislature may |
| 1293 | include relevant information and data obtained from the Office |
| 1294 | of Insurance Regulation within the Department of Financial |
| 1295 | Services on the availability and affordability of enterprise- |
| 1296 | wide medical liability insurance coverage for affected |
| 1297 | facilities and the availability and affordability of insurance |
| 1298 | policies for individual practitioners which contain coverage |
| 1299 | exclusions for acts of medical negligence in certified patient |
| 1300 | safety facilities. The Office of Insurance Regulation within the |
| 1301 | Department of Financial Services shall cooperate with the agency |
| 1302 | in the reporting of information and data specified in this |
| 1303 | subsection. |
| 1304 | (4) Reports submitted to the agency by affected facilities |
| 1305 | pursuant to this section are public records under chapter 199. |
| 1306 | However, these reports, and the information contained therein, |
| 1307 | are not admissible as evidence in a court of law in any action. |
| 1308 | Section 17. Section 766.409, Florida Statutes, is created |
| 1309 | to read: |
| 1310 | 766.409 Damages in malpractice actions against certain |
| 1311 | hospitals that meet patient safety requirements; agency approval |
| 1312 | of patient safety measures.-- |
| 1313 | (1) In recognition of their essential role in training |
| 1314 | future health care providers and in providing innovative medical |
| 1315 | care for this state's residents, in recognition of their |
| 1316 | commitment to treating indigent patients, and further in |
| 1317 | recognition that all teaching hospitals, as defined in s. |
| 1318 | 408.07, both public and private, and hospitals licensed under |
| 1319 | chapter 395 which are owned and operated by a university that |
| 1320 | maintains an accredited medical school, collectively defined as |
| 1321 | eligible hospitals in s. 766.401(8), provide benefits to the |
| 1322 | residents of this state through their roles in improving the |
| 1323 | quality of medical care, training health care providers, and |
| 1324 | caring for indigent patients, the limits of liability for |
| 1325 | medical malpractice arising out of the rendering of, or the |
| 1326 | failure to render, medical care by all such hospitals, shall be |
| 1327 | determined in accordance with the requirements of this section. |
| 1328 | (2) Except as otherwise provided in subsections (9) and |
| 1329 | (10), any eligible hospital may petition the agency to enter an |
| 1330 | order certifying that the licensed facility complies with |
| 1331 | patient safety measures specified in s. 766.403. |
| 1332 | (3) In accordance with chapter 120, the agency shall enter |
| 1333 | an order approving the petition upon a showing that the eligible |
| 1334 | hospital complies with the patient safety measures specified in |
| 1335 | s. 766.403. Upon entry of an order, and for the entire period of |
| 1336 | time that the order remains in effect, the damages recoverable |
| 1337 | from the eligible hospital covered by the order and its |
| 1338 | employees and agents in actions arising from medical negligence |
| 1339 | shall be determined in accordance with the following provisions: |
| 1340 | (a) Noneconomic damages shall be limited to a maximum of |
| 1341 | $500,000, regardless of the number of claimants or the theory of |
| 1342 | liability, in accordance with s. 766.118(6). |
| 1343 | (b) Awards of economic damages shall be offset by payments |
| 1344 | from collateral sources, as defined by s. 766.202(2), and any |
| 1345 | set-offs available under ss. 46.015 and 768.041. Awards for |
| 1346 | future economic losses shall be offset by future collateral |
| 1347 | source payments. |
| 1348 | (c) Awards of future economic damages, after being offset |
| 1349 | by collateral sources, shall, at the option of the eligible |
| 1350 | hospital, be reduced by the court to present value or paid by |
| 1351 | means of periodic payments in the form of annuities or |
| 1352 | reversionary trusts. A company that underwrites an annuity to |
| 1353 | pay future economic damages shall have rating of "A" or higher |
| 1354 | by A.M. Best Company. The terms of the reversionary instrument |
| 1355 | used to periodically pay future economic damages must be |
| 1356 | approved by the court; such approval may not be unreasonably |
| 1357 | withheld. |
| 1358 | (4) The limitations on damages in subsection (3) apply |
| 1359 | prospectively to causes of action for medical negligence that |
| 1360 | arise on or after the effective date of the order. |
| 1361 | (5) Upon entry of an order approving the petition, the |
| 1362 | agency may conduct onsite examinations of the licensed facility |
| 1363 | to assure continued compliance with terms and conditions of the |
| 1364 | order. |
| 1365 | (6) The agency order certifying approval of a petition |
| 1366 | under this section remains in effect until revoked. The agency |
| 1367 | may revoke the order upon reasonable notice to the affected |
| 1368 | hospital that it fails to comply with material requirements of |
| 1369 | ss. 766.401-766.409 or material conditions of the order |
| 1370 | certifying compliance with required patient safety measures and |
| 1371 | that the hospital has failed to cure stated deficiencies upon |
| 1372 | reasonable notice. Revocation of an agency order certifying |
| 1373 | approval of an enterprise plan for patient protection and |
| 1374 | provider liability applies prospectively to causes of action for |
| 1375 | medical negligence that arise on or after the effective date of |
| 1376 | the order of revocation. |
| 1377 | (7) An agency order certifying approval of a petition |
| 1378 | under this section shall, as a matter of law, constitute |
| 1379 | conclusive evidence that the hospital complies with all |
| 1380 | applicable patient safety requirements of s. 766.403. A |
| 1381 | hospital's noncompliance with the requirements of s. 766.403 may |
| 1382 | not affect the limitations on damages conferred by this section. |
| 1383 | Evidence of noncompliance with s. 766.403 may not be admissible |
| 1384 | for any purpose in any action for medical malpractice. This |
| 1385 | section, or any portion thereof, may not give rise to an |
| 1386 | independent cause of action for damages against any hospital. |
| 1387 | (8) The entry of an agency order pursuant to this section |
| 1388 | does not impose enterprise liability, or sole and exclusive |
| 1389 | liability, on the licensed facility for acts or omissions of |
| 1390 | medical negligence within the premises. |
| 1391 | (9) An eligible hospital may petition the agency for an |
| 1392 | order pursuant to this section or an order pursuant to s. |
| 1393 | 766.404. However, a hospital may not be approved for both |
| 1394 | enterprise liability under s. 766.404 and the limitations on |
| 1395 | damages under this section. |
| 1396 | (10) This section may not apply to hospitals that are |
| 1397 | subject to sovereign immunity under s. 768.28. |
| 1398 | Section 18. Section 766.410, Florida Statutes, is created |
| 1399 | to read: |
| 1400 | 766.410 Rulemaking authority.--The agency may adopt rules |
| 1401 | to administer ss. 766.401-766.409. |
| 1402 | Section 19. Subsections (5) and (12) of section 768.28, |
| 1403 | Florida Statutes, are amended to read: |
| 1404 | 768.28 Waiver of sovereign immunity in tort actions; |
| 1405 | recovery limits; limitation on attorney fees; statute of |
| 1406 | limitations; exclusions; indemnification; risk management |
| 1407 | programs.-- |
| 1408 | (5)(a) The state and its agencies and subdivisions shall |
| 1409 | be liable for tort claims in the same manner and to the same |
| 1410 | extent as a private individual under like circumstances, but |
| 1411 | liability does shall not include punitive damages or interest |
| 1412 | for the period before judgment. |
| 1413 | (b) Except as provided in paragraph (c), neither the state |
| 1414 | or nor its agencies or subdivisions are shall be liable to pay a |
| 1415 | claim or a judgment by any one person which exceeds the sum of |
| 1416 | $100,000 or any claim or judgment, or portions thereof, which, |
| 1417 | when totaled with all other claims or judgments paid by the |
| 1418 | state or its agencies or subdivisions arising out of the same |
| 1419 | incident or occurrence, exceeds the sum of $200,000. However, a |
| 1420 | judgment or judgments may be claimed and rendered in excess of |
| 1421 | these amounts and may be settled and paid pursuant to this act |
| 1422 | up to $100,000 or $200,000, as the case may be; and that portion |
| 1423 | of the judgment that exceeds these amounts may be reported to |
| 1424 | the Legislature, but may be paid in part or in whole only by |
| 1425 | further act of the Legislature. Notwithstanding the limited |
| 1426 | waiver of sovereign immunity provided herein, the state or an |
| 1427 | agency or subdivision thereof may agree, within the limits of |
| 1428 | insurance coverage provided, to settle a claim made or a |
| 1429 | judgment rendered against it without further action by the |
| 1430 | Legislature, but the state or agency or subdivision thereof |
| 1431 | shall not be deemed to have waived any defense of sovereign |
| 1432 | immunity or to have increased the limits of its liability as a |
| 1433 | result of its obtaining insurance coverage for tortious acts in |
| 1434 | excess of the $100,000 or $200,000 waiver provided above. The |
| 1435 | limitations of liability set forth in this subsection shall |
| 1436 | apply to the state and its agencies and subdivisions whether or |
| 1437 | not the state or its agencies or subdivisions possessed |
| 1438 | sovereign immunity before July 1, 1974. |
| 1439 | (c) In any action for medical negligence within a |
| 1440 | certified patient safety facility that is covered by sovereign |
| 1441 | immunity, given that the licensed health care facility bears |
| 1442 | sole and exclusive liability for acts of medical negligence |
| 1443 | pursuant to the Enterprise Act for Patient Protection and |
| 1444 | Provider Liability, inclusive of ss. 766.401-766.409, neither |
| 1445 | the state or its agencies or subdivisions are liable to pay a |
| 1446 | claim or a judgment by any one person which exceeds the sum of |
| 1447 | $150,000 or any claim or judgment, or portions thereof, which, |
| 1448 | when totaled with all other claims or judgments paid by the |
| 1449 | state or its agencies or subdivisions arising out of the same |
| 1450 | incident or occurrence, exceeds the sum of $300,000. However, a |
| 1451 | judgment may be claimed and rendered in excess of these amounts |
| 1452 | and may be settled and paid up to $150,000 or $300,000, as the |
| 1453 | case may be. That portion of the judgment which exceeds these |
| 1454 | amounts may be reported to the Legislature, but may be paid in |
| 1455 | part or in whole only by further act of the Legislature. |
| 1456 | Notwithstanding the limited waiver of sovereign immunity |
| 1457 | provided in this paragraph, the state or an agency or |
| 1458 | subdivision thereof may agree, within the limits of insurance or |
| 1459 | self-insurance coverage provided, to settle a claim made or a |
| 1460 | judgment rendered against it without further action by the |
| 1461 | Legislature, but the state or agency or subdivision thereof does |
| 1462 | not waive any defense of sovereign immunity or increase limits |
| 1463 | of its liability as a result of its obtaining insurance coverage |
| 1464 | or providing for self-insurance to cover claims for medical |
| 1465 | negligence in excess of the $150,000 waiver or the $300,000 |
| 1466 | waiver provided in this paragraph. The limitations of liability |
| 1467 | set forth in this paragraph apply to the state and its agencies |
| 1468 | and subdivisions whether or not the state or its agencies or |
| 1469 | subdivisions possessed sovereign immunity before July 1, 1974. |
| 1470 | (12)(a) A health care practitioner, as defined in s. |
| 1471 | 456.001(4), who has contractually agreed to act as an agent of a |
| 1472 | state university board of trustees to provide medical services |
| 1473 | to a student athlete for participation in or as a result of |
| 1474 | intercollegiate athletics, to include team practices, training, |
| 1475 | and competitions, is shall be considered an agent of the |
| 1476 | respective state university board of trustees, for the purposes |
| 1477 | of this section, while acting within the scope of and pursuant |
| 1478 | to guidelines established in that contract. The contracts shall |
| 1479 | provide for the indemnification of the state by the agent for |
| 1480 | any liabilities incurred up to the limits set out in this |
| 1481 | chapter. |
| 1482 | (b) This subsection shall not be construed as designating |
| 1483 | persons providing contracted health care services to athletes as |
| 1484 | employees or agents of a state university board of trustees for |
| 1485 | the purposes of chapter 440. |
| 1486 | (c)1. For purposes of this subsection, the terms |
| 1487 | "certified patient safety facility," "medical staff," and |
| 1488 | "medical negligence" have the same meanings as provided in s. |
| 1489 | 766.401. |
| 1490 | 2. A certified patient safety facility, wherein a minimum |
| 1491 | of 90 percent of the members of the medical staff consist of |
| 1492 | physicians are employees or agents of a state university, is an |
| 1493 | agent of the respective state university board of trustees for |
| 1494 | purposes of this section to the extent that the licensed |
| 1495 | facility, in accordance with an enterprise plan for patient |
| 1496 | protection and provider liability, inclusive of ss. 766.401- |
| 1497 | 766.409, approved by the Agency for Health Care Administration, |
| 1498 | is solely and exclusively liable for acts of medical negligence |
| 1499 | of physicians providing health care services within the licensed |
| 1500 | facility. |
| 1501 | 3. A certified patient safety facility that has been found |
| 1502 | to be an agent of the state for other purposes and has adopted |
| 1503 | an enterprise plan for patient protection and provider liability |
| 1504 | for the sole and exclusive liability for acts of medical |
| 1505 | negligence of affected practitioners who are employees and |
| 1506 | agents of the affiliated state university board of trustees and |
| 1507 | its own hospital employees and agents, inclusive of ss. 766.401- |
| 1508 | 766.409, approved by the Agency for Health Care Administration, |
| 1509 | is an agent of the respective state university board of trustees |
| 1510 | for purposes of this subsection only. |
| 1511 | 4. Subject to the acceptance of the Board of Governors and |
| 1512 | a state university board of trustees, a licensed facility as |
| 1513 | described by this subsection may secure the limits of liability |
| 1514 | protection described in paragraph (c) from a self insurance |
| 1515 | program created pursuant to s. 1004.24. |
| 1516 | 5. A notice of intent to commence an action for medical |
| 1517 | negligence arising from the care or treatment of a patient in a |
| 1518 | certified patient safety facility subject to the provisions of |
| 1519 | this subsection shall be sent to the licensed facility as the |
| 1520 | statutory agent created pursuant to an enterprise plan of the |
| 1521 | related board of trustees of a state university for the limited |
| 1522 | purposes of administering an enterprise plan for patient |
| 1523 | protection and provider liability. A complaint alleging medical |
| 1524 | negligence resulting in damages to a patient in a certified |
| 1525 | patient safety facility subject to the provisions of this |
| 1526 | paragraph shall be commenced against the applicable board of |
| 1527 | trustees of a state university on the relation of the licensed |
| 1528 | facility, and the doctrines of res judicata and collateral |
| 1529 | estoppel shall apply. The complaint shall be served on the |
| 1530 | licensed facility. Any notice of intent mailed to the licensed |
| 1531 | facility, any legal process served on the licensed facility, and |
| 1532 | any other notice, paper, or pleading that is served, sent, or |
| 1533 | delivered to the licensed facility pertaining to a claim of |
| 1534 | medical negligence shall have the same legal force and effect as |
| 1535 | mailing, service, or delivery to a duly authorized agent of the |
| 1536 | board of trustees of the respective state university, |
| 1537 | notwithstanding any provision of the laws of this state to the |
| 1538 | contrary. Upon receipt of any such notice of intent, complaint |
| 1539 | for damages, or other notice, paper, or pleading pertaining to a |
| 1540 | claim of medical negligence, a licensed facility subject to the |
| 1541 | provisions of this paragraph shall give timely notice to the |
| 1542 | related board of trustees of the state university, although |
| 1543 | failure to give timely notice does not affect the legal |
| 1544 | sufficiency of the notice of intent, service of process, or |
| 1545 | other notice, paper, or pleading. A final judgment or binding |
| 1546 | arbitration award against the board of trustees of a state |
| 1547 | university on the relation of a licensed facility, arising from |
| 1548 | a claim of medical negligence resulting in damages to a patient |
| 1549 | in a certified patient safety facility subject to the provisions |
| 1550 | of this paragraph, may be enforced in the same manner, and is |
| 1551 | subject to the same limitations on enforcement or recovery, as |
| 1552 | any final judgment for damages or binding arbitration award |
| 1553 | against the board of trustees of a state university, |
| 1554 | notwithstanding any provision of the laws of this state to the |
| 1555 | contrary. Any settlement agreement executed by the board of |
| 1556 | trustees of a state university on the relation of a licensed |
| 1557 | facility, arising from a claim of medical negligence resulting |
| 1558 | in damages to a patient in a certified patient safety facility |
| 1559 | subject to the provisions of this paragraph, may be enforced in |
| 1560 | the same manner and is subject to the same limitations as a |
| 1561 | settlement agreement executed by an authorized agent of the |
| 1562 | board of trustees. The board of trustees of a state university |
| 1563 | may make payment to a claimant in whole or in part of any |
| 1564 | portion of a final judgment or binding arbitration award against |
| 1565 | the board of trustees of a state university on the relation of a |
| 1566 | licensed facility, and any portion of a settlement of a claim |
| 1567 | for medical negligence arising from a certified patient safety |
| 1568 | facility subject to the provisions of this paragraph, which |
| 1569 | exceeds the amounts of the limited waiver of sovereign immunity |
| 1570 | specified in paragraph (5)(c), only as provided in that |
| 1571 | paragraph. |
| 1572 | Section 20. If any provision of this act or its |
| 1573 | application to any person or circumstance is held invalid, the |
| 1574 | invalidity does not affect other provisions or applications of |
| 1575 | the act which can be given effect without the invalid provision |
| 1576 | or application, and to this end, the provisions of this act are |
| 1577 | severable. |
| 1578 | Section 21. If a conflict between any provision of this |
| 1579 | act and s. 456.052, s. 456.053, s. 456.054, s. 458.331, s. |
| 1580 | 459.015, or s. 817.505, Florida Statutes, the provisions of this |
| 1581 | act shall govern. The provisions of this act should be broadly |
| 1582 | construed in furtherance of the overriding legislative intent to |
| 1583 | facilitate innovative approaches for patient protection and |
| 1584 | provider liability in eligible hospitals. |
| 1585 | Section 22. It is the intention of the Legislature that |
| 1586 | the provisions of this act are self-executing. |
| 1587 | Section 23. This act shall take effect upon becoming a |
| 1588 | law. |