Requires physicians suing with respect to disciplinary proceedings to bond cost of successful defense and requires hospitals to include risk management

BILL NUMBER:S2561

Title of bill

An act to amend the public health law, in relation to requiring physicians to post a bond as a condition to certain civil proceedings and to provide for a risk management program for physicians

Summary of provisions

Section one - Section 230 of the public health law is amended by adding a new subdivision 16-a which requires any physician instituting a civil proceeding as a result of any disciplinary action taken against him, to post a bond. The bond shall be in an amount fixed by the court, to pay the defendant all costs and damages, including reasonable attorney's fees, which may be sustained if defendant recovers judgment or it is decided that the plaintiff was not entitled to relief. Section two - Amends Section 2805-j of the public health law by adding a new subdivision 1-a which will require the Commissioner of Health to develop a risk management program which shall include department sponsored seminars, the publication of bulletins and other written materials and on-site risk management evaluation and assistance.

Justification

One of the reasons why physicians and hospitals do not actively report incompetent physicians is the fear that such action might precipitate an expensive lawsuit. For example, one reason why hospitals hesitate to dismiss incompetent doctors is the fear that the physician will sue the hospital. Hospital administrators claimed that the time and expense of protracted litigation in these matters make it impractical to pursue these cases. The bill would protect hospitals from extensive defense costs by requiring physicians to post a bond. Risk management is an effective tool in preventing and containing malpractice claims. The Department of Health should take an active role in risk management by initiating risk management programs, sponsor risk management seminars, and disseminate preventive risk management bulletins to all licensed health care facilities. Pennsylvania is presently operating a similar program.

Fiscal implication

None.

Effective date

Immediately.