HOUSE BILL No. 4495 March 12, 1997, Introduced by Reps. Brewer, Frank, Hale, Goschka, Baird and Bogardus and referred to the Committee on Health Policy. A bill to amend 1978 PA 368, entitled "Public health code," by amending sections 20165 and 20175 (MCL 333.20165 and 333.20175), section 20165 as amended by 1990 PA 179 and section 20175 as amended by 1993 PA 79, and by adding section 20173. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 20165. (1) Except as otherwise provided in this sec- 2 tion, after notice of intent to an applicant or licensee to deny, 3 limit, suspend, or revoke a license or certification and an 4 opportunity for a hearing, the department may deny, limit, sus- 5 pend, or revoke the license or certification ifany1 OR MORE 6 of the following exist: 7 (a) Fraud or deceit in obtaining or attempting to obtain a 8 license or certification or in operation of the licensed health 9 facility or agency. 00737'97 CPD 2 1 (b) A violation of this article or the rules promulgated 2 under this article. 3 (c) False or misleading advertising. 4 (d) Negligence or failure to exercise due care, including 5 negligent supervision of employees and subordinates. 6 (e) Permitting a license or certificate to be used by an 7 unauthorized health facility or agency. 8 (f) Evidence of abuse regarding patient health, welfare, or 9 safety or a denial of rights. 10 (g) Failure to comply with section 10102a(7). 11 (h) Failure to comply with part 222 or a term, condition, or 12 stipulation of a certificate of need issued under part 222, or 13 both. 14 (I) FAILURE TO MAKE A REPORT UNDER SECTION 20175(5) OR (7). 15 (2) An application for a license or certification may be 16 denied on a finding ofanyA condition or practicewhichTHAT 17 would constitute a violation of this article if the applicant 18 were a licensee. 19 (3) Denial, suspension, or revocation of an individual emer- 20 gency medical services personnel license under part 209 is gov- 21 erned by section 20958. 22 SEC. 20173. (1) A HEALTH FACILITY OR AGENCY SHALL NOT 23 EMPLOY AN INDIVIDUAL OR UTILIZE AN INDIVIDUAL AS A VOLUNTEER IN 24 THE HEALTH FACILITY OR AGENCY IF THE INDIVIDUAL HAS BEEN CON- 25 VICTED IN THIS STATE OR IN ANOTHER STATE OR IN FEDERAL COURT OF 26 EITHER OF THE FOLLOWING: 00737'97 3 1 (A) A FELONY OR AN ATTEMPT OR CONSPIRACY TO COMMIT A 2 FELONY. 3 (B) A MISDEMEANOR INVOLVING ABUSE, NEGLECT, ASSAULT, BAT- 4 TERY, OR FRAUD. 5 (2) A HEALTH FACILITY OR AGENCY SHALL NOT EMPLOY AN INDIVID- 6 UAL OR UTILIZE AN INDIVIDUAL AS A VOLUNTEER UNLESS THE INDIVIDUAL 7 PROVIDES THE HEALTH FACILITY OR AGENCY AS PART OF THE APPLICATION 8 PROCESS WITH INFORMATION FROM THE STATE POLICE OBTAINED PURSUANT 9 TO SUBSECTIONS (3) AND (4). 10 (3) AN INDIVIDUAL WHO APPLIES FOR EMPLOYMENT OR TO VOLUNTEER 11 WITH A HEALTH FACILITY OR AGENCY SHALL OBTAIN INFORMATION REGARD- 12 ING A CRIMINAL RECORD FOR THE HEALTH FACILITY OR AGENCY BY FOL- 13 LOWING THE PROCEDURE PROVIDED IN THIS SUBSECTION AND SUBSECTION 14 (4). UPON THE REQUEST OF THE INDIVIDUAL, A LAW ENFORCEMENT 15 AGENCY SHALL TAKE 2 SETS OF THE INDIVIDUAL'S FINGERPRINTS ON 16 FORMS FURNISHED BY THE DEPARTMENT OF STATE POLICE AND THE FEDERAL 17 BUREAU OF INVESTIGATION. IF THE LAW ENFORCEMENT AGENCY CHARGES A 18 FEE FOR THIS SERVICE, THE INDIVIDUAL REQUESTING THE SERVICE IS 19 RESPONSIBLE FOR THE FEE. THE INDIVIDUAL SHALL SUBMIT THE FINGER- 20 PRINT FORMS TO THE DEPARTMENT OF STATE POLICE WITH THE APPROPRI- 21 ATE STATE AND FEDERAL FEES. 22 (4) THE DEPARTMENT OF STATE POLICE SHALL COMPARE THE 23 INDIVIDUAL'S FINGERPRINTS WITH STATE CRIMINAL HISTORY RECORDS AND 24 SHALL SUBMIT THE OTHER SET OF FINGERPRINTS TO THE FEDERAL BUREAU 25 OF INVESTIGATION FOR COMPARISON WITH FEDERAL CRIMINAL HISTORY 26 RECORDS. THE DEPARTMENT OF STATE POLICE SHALL SEND BOTH OF THE 27 FOLLOWING TO THE HEALTH FACILITY OR AGENCY: 00737'97 4 1 (A) THE STATE CRIMINAL HISTORY RECORD. 2 (B) A STATEMENT STATING THAT, BASED UPON THE FEDERAL CRIMI- 3 NAL HISTORY RECORD COMPARISON, UNDER THE CRITERIA DESCRIBED IN 4 SUBSECTION (1), THE INDIVIDUAL MAY OR MAY NOT MEET THE REQUIRE- 5 MENTS OF SUBSECTION (1). 6 (5) IF THE STATEMENT SENT UNDER SUBSECTION (4)(B) STATES 7 THAT THE INDIVIDUAL MAY NOT MEET THE REQUIREMENTS OF SUBSECTION 8 (1), THE HEALTH FACILITY OR AGENCY SHALL NOTIFY THE INDIVIDUAL OF 9 HIS OR HER RIGHT TO OBTAIN FROM THE FEDERAL BUREAU OF INVESTIGA- 10 TION A COPY OF HIS OR HER FEDERAL CRIMINAL HISTORY RECORD AND TO 11 CHALLENGE THE ACCURACY OF THAT RECORD. 12 (6) A HEALTH FACILITY OR AGENCY SHALL PROVIDE AN APPLICANT 13 WITH INFORMATION ON HOW AND WHERE TO OBTAIN THE INFORMATION 14 REQUIRED BY THIS SECTION ON A FORM PROVIDED BY THE DEPARTMENT. 15 Sec. 20175. (1) A health facility or agency shall keep and 16 maintain a record for each patient including a full and complete 17 record of tests and examinations performed, observations made, 18 treatments provided, and in the case of a hospital, the purpose 19 of hospitalization. In addition to the sanctions set forth in 20 section 20165, a hospital that fails to comply with this subsec- 21 tion is subject to an administrative fine of $10,000.00. 22 (2) A hospital shall take precautions to assure that the 23 records required by subsection (1) are not wrongfully altered or 24 destroyed. A hospital that fails to comply with this subsection 25 is subject to an administrative fine of $10,000.00. 00737'97 5 1 (3) Unless otherwise provided by law, the licensing and 2 certification records required by this article are public 3 records. 4 (4) Departmental officers and employees shall respect the 5 confidentiality of patient clinical records and shall not divulge 6 or disclose the contents ofrecordsA PATIENT CLINICAL RECORD 7 in a manner that identifies an individual except pursuant to 8 court order. 9 (5) A health facility or agencythat employs, contracts10with, or grants privileges to a health professional licensed or11registered under article 15shall report the following to the 12 department ofcommerceCONSUMER AND INDUSTRY SERVICES not more 13 than 30 days after it occurs: 14 (a) Disciplinary action taken by the health facility or 15 agency against a health professional WHO IS licensed or regis- 16 tered under article 15 AND EMPLOYED BY, UNDER CONTRACT TO, OR 17 GRANTED CLINICAL PRIVILEGES IN THE HEALTH FACILITY OR AGENCY 18 based on the licensee's or registrant's professional competence, 19 disciplinary action that results in a change of employment 20 status, or disciplinary action based on conduct that adversely 21 affects the licensee's or registrant's clinical privileges for a 22 period of more than 15 days. As used in this subdivision, 23 "adversely affects" means the reduction, restriction, suspension, 24 revocation, denial, or failure to renew the clinical privileges 25 of a licensee or registrant by a health facility or agency. 26 (b) Restriction or acceptance of the surrender of the 27 clinical privileges of alicensee or registrantHEALTH 00737'97 6 1 PROFESSIONAL LICENSED OR REGISTERED UNDER ARTICLE 15 under either 2 of the following circumstances: 3 (i) The licensee or registrant is under investigation by the 4 health facility or agency. 5 (ii) There is an agreement in which the health facility or 6 agency agrees not to conduct an investigation into the licensee's 7 or registrant's alleged professional incompetence or improper 8 professional conduct. 9 (c) A case in which a health professional LICENSED OR REGIS- 10 TERED UNDER ARTICLE 15 resigns or terminates a contract or whose 11 contract is not renewed instead of the health facility OR AGENCY 12 taking disciplinary action against the health professional. 13 (6) Upon request by another health facility or agency seek- 14 ing a reference for purposes of changing or granting staff OR 15 CLINICAL privileges, credentials, or employment, a health facil- 16 ity or agency that employs, contracts with, or grants STAFF OR 17 CLINICAL privileges to health professionals licensed or regis- 18 tered under article 15 shall notify the requesting health facil- 19 ity or agency ofanydisciplinary or other action reportable 20 under subsection (5) that it has taken against a health profes- 21 sional licensed or registered under article 15 and employed by, 22 under contract to, or granted STAFF OR CLINICAL privileges by the 23 health facility or agency. 24 (7) A HEALTH FACILITY OR AGENCY SHALL REPORT TO THE DEPART- 25 MENT OF CONSUMER AND INDUSTRY SERVICES DISCIPLINARY ACTION TAKEN 26 BY THE HEALTH FACILITY OR AGENCY AGAINST AN EMPLOYEE THAT RESULTS 27 IN A CHANGE IN THE EMPLOYEE'S EMPLOYMENT STATUS AND THAT INVOLVES 00737'97 7 1 ABUSE, NEGLECT, PHYSICAL HARM, THEFT, OR FRAUDULENT BEHAVIOR 2 AGAINST A PATIENT OR RESIDENT OF THE HEALTH FACILITY OR AGENCY. 3 A REPORT REQUIRED UNDER THIS SUBSECTION IS IN ADDITION TO, AND IS 4 NOT SATISFIED BY, A REPORT MADE UNDER SUBSECTION (5)(A). 5 (8) A REPORT RECEIVED BY THE DEPARTMENT OF CONSUMER AND 6 INDUSTRY SERVICES UNDER SUBSECTION (5) OR (7) IS PUBLIC 7 INFORMATION. 8 (9)(7)For the purpose of reporting disciplinary actions 9 pursuant to this section, a health facility or agency shall 10 include only the following in the information provided: 11 (a) The name of the licensee or registrant OR OTHER EMPLOYEE 12 against whom disciplinary action has been taken. 13 (b) A description of the disciplinary action taken. 14 (c) The specific grounds for the disciplinary action taken. 15 (d) The date of the incident that is the basis for the dis- 16 ciplinary action. 17 (10)(8)The records, data, and knowledge collected for or 18 by individuals or committees assigned a professional review func- 19 tion in a health facility or agency are confidential, shall be 20 used only for the purposes provided in this article, are not 21 public records, and are not subject to court subpoena. 22 Enacting section 1. This amendatory act does not take 23 effect unless all of the following bills of the 89th Legislature 24 are enacted into law: 25 (a) Senate Bill No. _____ or House Bill No. _____ (request 26 no. 00737'97 a). 00737'97 8 1 (b) Senate Bill No. _____ or House Bill No. _____ (request 2 no. 00737'97 b). 3 (c) Senate Bill No. _____ or House Bill No. _____ (request 4 no. 00737'97 c). 00737'97 Final page. CPD