SENATE BILL No. 465

 

 

May 5, 2005, Introduced by Senators JACOBS, BASHAM, SWITALSKI, CLARK-COLEMAN, BARCIA, OLSHOVE, HAMMERSTROM, LELAND, CHERRY, THOMAS, PATTERSON, GILBERT, CROPSEY, PRUSI, BRATER, SCHAUER and STAMAS and referred to the Committee on Health Policy.

 

 

 

     A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 16177 and 20175 (MCL 333.16177 and 333.20175),

 

section 16177 as amended by 1998 PA 332 and section 20175 as

 

amended by 2000 PA 319, and by adding sections 16213 and 20175a.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 16177. (1) An individual applying for licensure or

 

registration under this article shall do so on a form provided by

 

the department. The department shall require each applicant to

 

include on the application form his or her social security number.

 

The department shall not display an applicant's social security

 

number on his or her license or registration. If the facts set

 


forth in the application meet the requirements of the board or task

 

force and this article for licensure or registration, the board or

 

task force shall grant a license or registration to the applicant.

 

A board or task force may require the applicant to take an

 

examination to determine if the applicant meets the qualifications

 

for licensure or registration. The examination shall include

 

subjects determined by the board or task force to be essential to

 

the safe and competent practice of the health profession, the

 

appropriate use of a title, or both. Passing scores or the

 

procedure used to determine passing scores shall be established

 

before an examination is administered.

 

     (2) In addition to the information required under subsection

 

(1), an applicant for licensure or registration or a licensee or

 

registrant applying for renewal shall include on a form provided by

 

the department all of the following information, if applicable:

 

     (a) A felony conviction.

 

     (b) A misdemeanor conviction punishable by imprisonment for a

 

maximum term of 2 years or a misdemeanor conviction involving the

 

illegal delivery, possession, or use of alcohol or a controlled

 

substance.

 

     (c) Sanctions imposed against the applicant by a similar

 

licensure, registration, certification, or disciplinary board of

 

another state or country.

 

     (3) In addition to the information required under subsections

 

(1) and (2), a physician, osteopathic physician, dentist, or

 

podiatrist applying for licensure or renewal under this article

 

shall report to the department on a form provided by the department

 


the name of each hospital with which he or she is employed or under

 

contract, and each hospital in which he or she is allowed to

 

practice.

 

     (4) In addition to the information required under subsections

 

(1), (2), and (3), an applicant for licensure or registration and,

 

beginning the license renewal cycle after the effective date of the

 

amendatory act that added section 16213, a licensee or registrant

 

applying for renewal shall provide the department on a form

 

provided by the department the name of the health care provider,

 

health facility or agency, medical records company, or other person

 

who is responsible for protecting, maintaining, and providing

 

access to his or her medical records in accordance with section

 

16213.

 

     (5)  (4)  A requirement under this section to include a social

 

security number on an application does not apply to an applicant

 

who demonstrates he or she is exempt under law from obtaining a

 

social security number or to an applicant who for religious

 

convictions is exempt under law from disclosure of his or her

 

social security number under these circumstances. The department

 

shall inform the applicant of this possible exemption.

 

     Sec. 16213. (1) An individual registered or licensed under

 

this article shall keep and maintain a record for each patient for

 

whom he or she has provided professional services, including a full

 

and complete record of tests and examinations performed,

 

observations made, and treatments provided. The records shall be

 

kept and maintained for a minimum of 10 years from the last date of

 

service provided to the patient or longer if otherwise required

 


under any other federal or state law or regulation. The records

 

shall be maintained in such a manner as to protect their integrity,

 

to ensure their confidentiality and proper use, and to ensure their

 

accessibility and availability to each patient or his or her

 

authorized representative as required by law.

 

     (2) If a licensee or registrant is unable to comply with this

 

section, the licensee or registrant shall employ or contract with

 

another health care provider, a health facility or agency, or a

 

medical records company to protect, maintain, and provide access to

 

those records required under subsection (1).

 

     (3) If a licensee or registrant sells or closes his or her

 

practice, retires from practice, or otherwise ceases to practice

 

under this article, the licensee or registrant or the personal

 

representative of the licensee or registrant, if the licensee or

 

registrant is deceased, shall not abandon the records required

 

under this section and shall do both of the following:

 

     (a) Send a written notice to the last known address of each

 

patient for whom he or she has provided professional services. The

 

notice shall provide the patient with the opportunity to designate

 

where he or she would like his or her records transferred and shall

 

specify who will retain custody of his or her records and how he or

 

she may request access to the same if he or she does not designate

 

otherwise.

 

     (b) Transfer the records required under subsection (1) to any

 

of the following:

 

     (i) A successor licensee or registrant.

 

     (ii) If requested by the patient or his or her authorized

 


representative, a specific health facility or agency or other

 

health care provider licensed or registered under article 15.

 

     (iii) A health care provider, a health facility or agency, or a

 

medical records company with which the licensee or registrant had

 

contracted to protect, maintain, and provide access to those

 

records required under subsection (1).

 

     (4) Except as otherwise provided under federal or state laws

 

and regulations, records required to be maintained under subsection

 

(1) may be destroyed or otherwise disposed of after being

 

maintained for 10 years. If records maintained in accordance with

 

this section are subsequently destroyed or otherwise disposed of,

 

those records shall be shredded, incinerated, electronically

 

deleted, or otherwise disposed of in a manner that ensures

 

continued confidentiality of the patient's health care information

 

and any other personal information relating to the patient.

 

If records are destroyed or otherwise disposed of as provided under

 

this subsection, the department may take action including, but not

 

limited to, contracting for or making other arrangement to ensure

 

that those records and any other confidential identifying

 

information related to the patient are properly destroyed or

 

disposed of to protect the confidentiality of patient's health care

 

information and any other personal information relating to the

 

patient. The department may assess the licensee or registrant with

 

the costs incurred by the department to enforce this subsection.

 

     (5) A person who fails to comply with this section is subject

 

to an administrative fine of $10,000.00.

 

     (6) As used in this section:

 


     (a) "Medical records company" means a person who contracts for

 

or agrees to protect, maintain, and provide access to medical

 

records for a health care provider or health facility or agency in

 

accordance with this section.

 

     (b) "Patient" means an individual who receives or has received

 

health care from a health care provider or health facility or

 

agency. Patient includes a guardian, if appointed, and a parent,

 

guardian, or person acting in loco parentis, if the individual is a

 

minor, unless the minor lawfully obtained health care without the

 

consent or notification of a parent, guardian, or other person

 

acting in loco parentis, in which case the minor has the exclusive

 

right to exercise the rights of a patient under this section with

 

respect to his or her medical records relating to that care.

 

     Sec. 20175. (1) A health facility or agency shall keep and

 

maintain a record for each patient, including a full and complete

 

record of tests and examinations performed, observations made,

 

treatments provided, and in the case of a hospital, the purpose of

 

hospitalization. The records shall be kept and maintained for a

 

minimum of 10 years from the last date of service provided to the

 

patient or longer if otherwise required under any other federal or

 

state law or regulation. A health facility or agency shall maintain

 

the records in such a manner as to protect their integrity, to

 

ensure their confidentiality and proper use, and to ensure their

 

accessibility and availability to each patient or his or her

 

authorized representative as required by law. Except as otherwise

 

provided under federal or state laws and regulations, records

 

required to be maintained under this subsection may be destroyed or

 


otherwise disposed of after being maintained for 10 years. If

 

records maintained in accordance with this section are subsequently

 

destroyed or otherwise disposed of, those records shall be

 

shredded, incinerated, electronically deleted, or otherwise

 

disposed of in a manner that ensures continued confidentiality of

 

the patient's health care information and any other personal

 

information relating to the patient. If records are destroyed or

 

otherwise disposed of as provided under this subsection, the

 

department may take action including, but not limited to,

 

contracting for or making other arrangements to ensure that those

 

records and any other confidential identifying information related

 

to the patient are properly destroyed or disposed of to protect the

 

confidentiality of patient's health care information and any other

 

personal information relating to the patient. The department may

 

assess the health facility or agency with the costs incurred by the

 

department to enforce this subsection. In addition to the sanctions

 

set forth in section 20165, a hospital that fails to comply with

 

this subsection is subject to an administrative fine of $10,000.00.

 

     (2) A hospital shall take precautions to assure that the

 

records required by subsection (1) are not wrongfully altered or

 

destroyed. A hospital that fails to comply with this subsection is

 

subject to an administrative fine of $10,000.00.

 

     (3) Unless otherwise provided by law, the licensing and

 

certification records required by this article are public records.

 

     (4) Departmental officers and employees shall respect the

 

confidentiality of patient clinical records and shall not divulge

 

or disclose the contents of records in a manner that identifies an

 


individual except pursuant to court order or as otherwise

 

authorized by law.

 

     (5) A health facility or agency that employs, contracts with,

 

or grants privileges to a health professional licensed or

 

registered under article 15 shall report the following to the

 

department  of consumer and industry services  not more than 30

 

days after it occurs:

 

     (a) Disciplinary action taken by the health facility or agency

 

against a health professional licensed or registered under article

 

15 based on the licensee's or registrant's professional competence,

 

disciplinary action that results in a change of employment status,

 

or disciplinary action based on conduct that adversely affects the

 

licensee's or registrant's clinical privileges for a period of more

 

than 15 days. As used in this subdivision, "adversely affects"

 

means the reduction, restriction, suspension, revocation, denial,

 

or failure to renew the clinical privileges of a licensee or

 

registrant by a health facility or agency.

 

     (b) Restriction or acceptance of the surrender of the clinical

 

privileges of a licensee or registrant under either of the

 

following circumstances:

 

     (i) The licensee or registrant is under investigation by the

 

health facility or agency.

 

     (ii) There is an agreement in which the health facility or

 

agency agrees not to conduct an investigation into the licensee's

 

or registrant's alleged professional incompetence or improper

 

professional conduct.

 

     (c) A case in which a health professional resigns or

 


terminates a contract or whose contract is not renewed instead of

 

the health facility taking disciplinary action against the health

 

professional.

 

     (6) Upon request by another health facility or agency seeking

 

a reference for purposes of changing or granting staff privileges,

 

credentials, or employment, a health facility or agency that

 

employs, contracts with, or grants privileges to health

 

professionals licensed or registered under article 15 shall notify

 

the requesting health facility or agency of any disciplinary or

 

other action reportable under subsection (5) that it has taken

 

against a health professional licensed or registered under article

 

15 and employed by, under contract to, or granted privileges by the

 

health facility or agency.

 

     (7) For the purpose of reporting disciplinary actions under

 

this section, a health facility or agency shall include only the

 

following in the information provided:

 

     (a) The name of the licensee or registrant against whom

 

disciplinary action has been taken.

 

     (b) A description of the disciplinary action taken.

 

     (c) The specific grounds for the disciplinary action taken.

 

     (d) The date of the incident that is the basis for the

 

disciplinary action.

 

     (8) The records, data, and knowledge collected for or by

 

individuals or committees assigned a professional review function

 

in a health facility or agency, or an institution of higher

 

education in this state that has colleges of osteopathic and human

 

medicine, are confidential, shall be used only for the purposes

 


provided in this article, are not public records, and are not

 

subject to court subpoena.

 

     Sec. 20175a. (1) If a health facility or agency is unable to

 

comply with section 20175, the health facility or agency shall

 

employ or contract with another health facility or agency or a

 

medical records company to protect, maintain, and provide access to

 

those records required under section 20175(1).

 

     (2) If a health facility or agency closes or otherwise ceases

 

operation, the health facility or agency shall not abandon the

 

records required to be maintained under section 20175(1) and shall

 

do both of the following:

 

     (a) Send a written notice to the last known address of each

 

patient for whom he or she has provided professional services. The

 

notice shall provide the patient with the opportunity to designate

 

where he or she would like his or her records transferred and shall

 

specify who will retain custody of his or her records and how he or

 

she may request access to the same if he or she does not designate

 

otherwise.

 

     (b) Transfer the records required under section 20175(1) to

 

any of the following:

 

     (i) A successor health facility or agency.

 

     (ii) If designated by the patient or his or her authorized

 

representative, a specific health facility or agency or a health

 

care provider licensed or registered under article 15.

 

     (iii) A health facility or agency or a medical records company

 

with which the health facility or agency had contracted to protect,

 

maintain, and provide access to those records required under

 


section 20175(1).

 

     (3) A person that fails to comply with this section is subject

 

to an administrative fine of $10,000.00.

 

     (4) As used in this section:

 

     (a) "Medical records company" means a person who contracts for

 

or agrees to protect, maintain, and provide access to medical

 

records for a health facility or agency in accordance with section

 

20175.

 

     (b) "Patient" means an individual who receives or has received

 

health care from a health care provider or health facility or

 

agency. Patient includes a guardian, if appointed, and a parent,

 

guardian, or person acting in loco parentis, if the individual is a

 

minor, unless the minor lawfully obtained health care without the

 

consent or notification of a parent, guardian, or other person

 

acting in loco parentis, in which case the minor has the exclusive

 

right to exercise the rights of a patient under this section with

 

respect to his or her medical records relating to that care.