State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ House Amendment 001 ]


92_HB0377ham002

 










                                           LRB9200935LBmbam01

 1                     AMENDMENT TO HOUSE BILL 377

 2        AMENDMENT NO.     .  Amend House Bill 377, AS AMENDED, by
 3    replacing everything  after  the  enacting  clause  with  the
 4    following:

 5        "Section  5.   The  Hospital  Licensing Act is amended by
 6    adding Section 10.8 as follows:

 7        (210 ILCS 85/10.8 new)
 8        Sec. 10.8.  Requirements for employment of physicians.
 9        (a)  Physician  employment  by  hospitals  and   hospital
10    affiliates.  Employing  entities  may  employ  physicians  to
11    practice  medicine  in  all of its branches provided that the
12    following requirements are met:
13             (1)  The employed  physician  is  a  member  of  the
14        medical   staff   of  either  the  hospital  or  hospital
15        affiliate.  If a hospital affiliate  decides  to  have  a
16        medical  staff,  its  medical staff shall be organized in
17        accordance  with  written  bylaws  where  the   affiliate
18        medical  staff  is responsible for making recommendations
19        to the governing body  of  the  affiliate  regarding  all
20        quality    assurance    activities    and    safeguarding
21        professional   autonomy.   The  affiliate  medical  staff
22        bylaws  may not be unilaterally changed by the  governing
 
                            -2-            LRB9200935LBmbam01
 1        body  of the affiliate.  Nothing in this Section requires
 2        hospital affiliates to have a medical staff.
 3             (2)  An independent medical staff  committee  or  an
 4        external  independent  physician reviewer or organization
 5        periodically reviews the quality of the medical  services
 6        provided by the employed physician.
 7             (3)  The employing entity and the employed physician
 8        sign  a  statement  acknowledging that the employer shall
 9        not unreasonably exercise, control, direct, or  interfere
10        with  the  employed physician's exercise and execution of
11        his  or  her  professional  judgment  in  a  manner  that
12        adversely affects the  employed  physician's  ability  to
13        provide  quality care to patients.  This signed statement
14        shall take the form of a  provision  in  the  physician's
15        employment  contract  or  a separate signed document from
16        the employing entity  to  the  employed  physician.  This
17        statement  shall  state: "As the employer of a physician,
18        (employer's  name)  shall   not  unreasonably   exercise,
19        control,   direct,   or   interfere   with  the  employed
20        physician's  exercise  and  execution  of  his   or   her
21        professional  judgment in a manner that adversely affects
22        the employed physician's ability to provide quality  care
23        to patients."
24             (4)  The   employing   entity   shall   establish  a
25        confidential peer  review  process  with  criteria  under
26        which   an  employed  physician,  who  believes  that  an
27        employing entity has violated  this  Section,  may   seek
28        review  of  the  alleged  violation  by either a mutually
29        agreed upon medical  staff  committee  of  the  employing
30        entity,  if  any,  or  a mutually agreed upon independent
31        external physician reviewer  or  organization  to  assess
32        whether  the  alleged violation involved the unreasonable
33        exercise, control, direction, or  interference  with  the
34        employed physician's exercise and execution of his or her
 
                            -3-            LRB9200935LBmbam01
 1        professional judgment in a manner that adversely affected
 2        the  employed physician's ability to provide quality care
 3        to patients.  This review is conducted for the purpose of
 4        quality control, for reducing morbidity or mortality, and
 5        for improving patient care or  the  employed  physician's
 6        services  in  accordance  with  Section  5 of the Medical
 7        Practice Act of 1987.   The medical  staff  committee  or
 8        external  independent  physician  peer  review shall make
 9        findings and recommendations to the employing entity  and
10        the  employed  physician within 30 days of the conclusion
11        of the gathering  of  the  relevant  information  by  the
12        committee  or  peer  review.  No action may be taken that
13        affects the ability of a  physician  to  practice  during
14        this  review,  except  in circumstances where the medical
15        staff bylaws authorize summary suspension.
16        (b)  Definitions.  For the purpose of this Section:
17        "Employing entity" means a hospital  licensed  under  the
18    Hospital Licensing Act or a hospital  affiliate.
19        "Employed  physician"  means  a physician who receives an
20    IRS W-2 form, or any successor federal income tax form,  from
21    an employing entity.
22        "Hospital"  means  a hospital licensed under the Hospital
23    Licensing Act.
24        "Hospital affiliate" means  a  corporation,  partnership,
25    joint   venture,   limited   liability  company,  or  similar
26    organization,  other  than  a  hospital,  that   is   devoted
27    primarily  to the provision, management, or support of health
28    care services and that directly or  indirectly  controls,  is
29    controlled  by,  or  is under common control of the hospital.
30    "Control" means having  at  least  an  equal  or  a  majority
31    ownership or membership interest.  A hospital affiliate shall
32    be  100% owned or controlled by any combination of hospitals,
33    their parent corporations, or physicians licensed to practice
34    medicine in all its branches in Illinois.
 
                            -4-            LRB9200935LBmbam01
 1        "Independent  external  physician  review   organization"
 2    means  an  organization  of  physicians  licensed to practice
 3    medicine in all its branches that conducts  peer  review  for
 4    the  purposes  of  medical  study,  for reducing mortality or
 5    morbidity, or for improving patient care as recognized  under
 6    Section 5 of the Medical Practice Act of 1987.
 7        "Independent  medical  staff committee" means a committee
 8    of the medical staff that is  not  controlled  by  physicians
 9    employed by an employing entity.
10        "Physician"  means  an  individual  licensed  to practice
11    medicine in all its branches in Illinois.
12        "Professional   judgment"  means   the  exercise  of    a
13    physician's  independent  clinical   judgment  in   providing
14    medically  appropriate diagnoses, care,  and  treatment  to a
15    particular patient at a particular time.  Situations in which
16    an employing entity  does  not  interfere  with  an  employed
17    physician's    professional    judgment    include,   without
18    limitation, the following:
19             (1)  practice restrictions based upon peer review of
20        the  physician's  clinical practice to assess quality  of
21        care  and  utilization  of   resources in accordance with
22        applicable bylaws;
23             (2)  supervision   of  physicians  by  appropriately
24        licensed  medical  directors,  medical  school   faculty,
25        department  chairpersons  or  directors, or   supervising
26        physicians;
27             (3)  written  statements  of  ethical  or  religious
28        directives; and
29             (4)  reasonable  referral  restrictions that do not,
30        in the reasonable professional judgment of the physician,
31        adversely affect the health or welfare of the patient.
32        (c)  Private enforcement. An employed physician aggrieved
33    by  a  violation of this Act may seek to obtain an injunction
34    or reinstatement of employment with the employing  entity  as
 
                            -5-            LRB9200935LBmbam01
 1    the  court  may  deem  appropriate.   Nothing in this Section
 2    abrogates any common law cause of action.
 3        (d)  Department enforcement.  The Department may  enforce
 4    the  provisions  of this Section, but nothing in this Section
 5    shall require or permit the Department to  license,  certify,
 6    or  otherwise  investigate  the  activities  of  an employing
 7    entity.
 8        (e)  Retaliation prohibited.  No employing  entity  shall
 9    retaliate  against  any  employed  physician for requesting a
10    hearing or review under this Section.
11        (f)  Physician collaboration.  No employing entity  shall
12    adopt  or  enforce,  either  formally   or  informally,   any
13    policy,  rule, regulation, or practice inconsistent with  the
14    provision   of   adequate  collaboration,  including  medical
15    direction  of  licensed   advanced   practice    nurses    or
16    supervision  of  licensed physician assistants and delegation
17    to other personnel under Section 54.5 of the Medical Practice
18    Act of 1987.
19        (g)  Physician disciplinary  actions.   Nothing  in  this
20    Section shall be construed to limit or prohibit the governing
21    body  of  an  employing  entity or its medical staff, if any,
22    from taking  disciplinary  actions  against  a  physician  as
23    permitted by law.
24        (h)  Physician  review.  Nothing in this Section shall be
25    construed to prohibit a hospital or hospital  affiliate  from
26    making  a  determination  not  to pay for a particular health
27    care service or to  prohibit  a  medical  group,  independent
28    practice  association,  hospital  medical  staff, or hospital
29    governing body  from  enforcing  reasonable  peer  review  or
30    utilization  review  protocols  or  determining  whether  the
31    employed physician complied with those protocols.
32        (i)  Review.   Nothing  in  this  Section  may be used or
33    construed to establish that any activity  of  a  hospital  or
34    hospital  affiliate  is  subject to review under the Illinois
 
                            -6-            LRB9200935LBmbam01
 1    Health Facilities Planning Act.

 2        Section 99.  Effective  date.  This Act takes  effect  on
 3    September 30, 2001.".

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