This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.



	
Amend HB 1218 (Senate committee printing) as follows:                        
	(1)  Add the following appropriately numbered SECTIONS to 
the bill and renumber subsequent SECTIONS of the bill accordingly:
	SECTION ____.  CHILD HEALTH PLAN AND MEDICAID PILOT 
PROGRAMS.  Subchapter B, Chapter 531, Government Code, is amended 
by adding Sections 531.0993 and 531.0994 to read as follows:
	Sec. 531.0993.  OBESITY PREVENTION PILOT PROGRAM.  (a)  The 
commission and the Department of State Health Services shall 
coordinate to establish a pilot program designed to:
		(1)  decrease the rate of obesity in child health plan 
program enrollees and Medicaid recipients;
		(2)  improve the nutritional choices and increase 
physical activity levels of child health plan program enrollees and 
Medicaid recipients; and
		(3)  achieve long-term reductions in child health plan 
and Medicaid program costs incurred by the state as a result of 
obesity.
	(b)  The commission and the Department of State Health 
Services shall implement the pilot program for a period of at least 
24 months in one or more health care service regions in this state, 
as selected by the commission.  In selecting the regions for 
participation, the commission shall consider the degree to which 
child health plan program enrollees and Medicaid recipients in the 
region are at higher than average risk of obesity.
	(c)  In developing the pilot program, the commission and the 
Department of State Health Services in consultation with the Health 
Care Quality Advisory Committee established under Section 531.0995 
shall identify measurable goals and specific strategies for 
achieving those goals.  The specific strategies may be 
evidence-based to the extent evidence-based strategies are 
available for the purposes of the program.
	(d)  The commission shall submit a report on or before each 
November 1 that occurs during the period the pilot program is 
operated to the standing committees of the senate and house of 
representatives having primary jurisdiction over the child health 
plan and Medicaid programs regarding the results of the program.  In 
addition, the commission shall submit a final report to the 
committees regarding those results not later than three months 
after the conclusion of the program.  Each report must include:
		(1)  a summary of the identified goals for the program 
and the strategies used to achieve those goals;
		(2)  an analysis of all data collected in the program as 
of the end of the period covered by the report and the capability of 
the data to measure achievement of the identified goals;
		(3)  a recommendation regarding the continued 
operation of the program; and
		(4)  a recommendation regarding whether the program 
should be implemented statewide.
	(e)  The executive commissioner may adopt rules to implement 
this section.
	Sec. 531.0994.  MEDICAL HOME FOR CHILD HEALTH PLAN PROGRAM 
ENROLLEES AND MEDICAID RECIPIENTS.  (a)  In this section, "medical 
home" means a primary care provider who provides preventive and 
primary care to a patient on an ongoing basis and coordinates with 
specialists when health care services provided by a specialist are 
needed.
	(b)  The commission shall establish and operate for a period 
of at least 24 months a pilot program in one or more health care 
service regions in this state designed to establish a medical home 
for each child health plan program enrollee and Medicaid recipient 
participating in the pilot program.  A primary care provider 
participating in the program may designate a care coordinator to 
support the medical home concept.
	(c)  The commission shall develop in consultation with the 
Health Care Quality Advisory Committee established under Section 
531.0995 the pilot program in a manner that:
		(1)  bases payments made, or incentives provided, to a 
participant's medical home on factors that include measurable 
wellness and prevention criteria, use of best practices, and 
outcomes; and
		(2)  allows for the examination of measurable wellness 
and prevention criteria, use of best practices, and outcomes based 
on type of primary care provider.
	(d)  The commission shall submit a report on or before each 
January 1 that occurs during the period the pilot program is 
operated to the standing committees of the senate and house of 
representatives having primary jurisdiction over the child health 
plan and Medicaid programs regarding the status of the pilot 
program.  Each report must include:
		(1)  preliminary recommendations regarding the 
continued operation of the program or whether the program should be 
implemented statewide; or
		(2)  if the commission cannot make the recommendations 
described by Subdivision (1) due to an insufficient amount of data 
having been collected at the time of the report, statements 
regarding the time frames within which the commission anticipates 
collecting sufficient data and making those recommendations.
	(e)  The commission shall submit a final report to the 
committees specified by Subsection (d) regarding the results of the 
pilot program not later than three months after the conclusion of 
the program.  The final report must include:
		(1)  an analysis of all data collected in the program;  
and          
		(2)  a final recommendation regarding whether the 
program should be implemented statewide.
	SECTION ____.  HEALTH CARE QUALITY ADVISORY COMMITTEE.  
(a)  Subchapter B, Chapter 531, Government Code, is amended by 
adding Section 531.0995 to read as follows:
	Sec. 531.0995.  HEALTH CARE QUALITY ADVISORY COMMITTEE.  
(a)  The commission shall establish the Health Care Quality 
Advisory Committee to assist the commission as specified by 
Subsection (e) with defining best practices and quality performance 
with respect to health care services and setting standards for 
quality performance by health care providers and facilities for 
purposes of programs administered by the commission or a health and 
human services agency.
	(b)  The executive commissioner shall appoint the members of 
the advisory committee.  The committee must consist of:
		(1)  the following types of health care providers:                     
			(A)  a physician from an urban area who has 
clinical practice expertise and who may be a pediatrician;
			(B)  a physician from a rural area who has 
clinical practice expertise and who may be a pediatrician;  and
			(C)  a nurse practitioner;                                            
		(2)  a representative of each of the following types of 
health care facilities:
			(A)  a general acute care hospital; and                               
			(B)  a children's hospital;                                           
		(3)  a representative from a care management 
organization;           
		(4)  a member of the Advisory Panel on Health 
Care-Associated Infections and Preventable Adverse Events who 
meets the qualifications prescribed by Section 98.052(a)(4), 
Health and Safety Code;  and
		(5)  a representative of health care consumers.                        
	(c)  The credentials of a single member of the advisory 
committee may satisfy more than one of the criteria required of the 
advisory committee members under Subsection (b).
	(d)  The executive commissioner shall appoint the presiding 
officer of the advisory committee.
	(e)  The advisory committee shall advise the commission on:             
		(1)  measurable goals for the obesity prevention pilot 
program under Section 531.0993;
		(2)  measurable wellness and prevention criteria and 
best practices for the medical home pilot program under Section 
531.0994;
		(3)  quality of care standards, evidence-based 
protocols, and measurable goals for quality-based payment 
initiatives pilot programs implemented under Subchapter W; and
		(4)  any other quality of care standards, 
evidence-based protocols, measurable goals, or other related 
issues with respect to which a law or the executive commissioner 
specifies that the committee shall advise.
	(b)  The executive commissioner of the Health and Human 
Services Commission shall appoint the members of the Health Care 
Quality Advisory Committee not later than November 1, 2009.
	SECTION ____.  UNCOMPENSATED HOSPITAL CARE DATA.  (a)  The 
heading to Section 531.551, Government Code, is amended to read as 
follows:
	Sec. 531.551.  UNCOMPENSATED HOSPITAL CARE REPORTING AND 
ANALYSIS; HOSPITAL AUDIT FEE.
	(b)  Section 531.551, Government Code, is amended by 
amending Subsections (a) and (d) and adding Subsections (a-1), 
(a-2), and (m) to read as follows:
	(a)  Using data submitted to the Department of State Health 
Services under Subsection (a-1), the [The] executive commissioner 
shall adopt rules providing for:
		(1)  a standard definition of "uncompensated hospital 
care" that reflects unpaid costs incurred by hospitals and accounts 
for actual hospital costs and hospital charges and revenue sources;
		(2)  a methodology to be used by hospitals in this state 
to compute the cost of that care that incorporates the standard set 
of adjustments described by Section 531.552(g)(4); and
		(3)  procedures to be used by those hospitals to report 
the cost of that care to the commission and to analyze that cost.
	(a-1)  To assist the executive commissioner in adopting and 
amending the rules required by Subsection (a), the Department of 
State Health Services shall require each hospital in this state to 
provide to the department, not later than a date specified by the 
department, uncompensated hospital care data prescribed by the 
commission.  Each hospital must submit complete and adequate data, 
as determined by the department, not later than the specified date.
	(a-2)  The Department of State Health Services shall notify 
the commission of each hospital in this state that fails to submit 
complete and adequate data required by the department under 
Subsection (a-1) on or before the date specified by the department.  
Notwithstanding any other law and to the extent allowed by federal 
law, the commission may withhold Medicaid program reimbursements 
owed to the hospital until the hospital complies with the 
requirement.
	(d)  If the commission determines through the procedures 
adopted under Subsection (b) that a hospital submitted a report 
described by Subsection (a)(3) with incomplete or inaccurate 
information, the commission shall notify the hospital of the 
specific information the hospital must submit and prescribe a date 
by which the hospital must provide that information.  If the 
hospital fails to submit the specified information on or before the 
date prescribed by the commission, the commission shall notify the 
attorney general of that failure.  On receipt of the notice, the 
attorney general shall impose an administrative penalty on the 
hospital in an amount not to exceed $10,000.  In determining the 
amount of the penalty to be imposed, the attorney general shall 
consider:
		(1)  the seriousness of the violation;                                        
		(2)  whether the hospital had previously committed a 
violation; and         
		(3)  the amount necessary to deter the hospital from 
committing future violations.
	(m)  The commission may require each hospital that is 
required under 42 C.F.R. Section 455.304 to be audited to pay a fee 
to offset the cost of the audit in an amount determined by the 
commission.  The total amount of fees imposed on hospitals as 
authorized by this subsection may not exceed the total cost 
incurred by the commission in conducting the required audits of the 
hospitals.
	(c)  As soon as possible after the date the Department of 
State Health Services requires each hospital in this state to 
initially submit uncompensated hospital care data under Subsection 
(a-1), Section 531.551, Government Code, as added by this section, 
the executive commissioner of the Health and Human Services 
Commission shall adopt rules or amendments to existing rules that 
conform to the requirements of Subsection (a), Section 531.551, 
Government Code, as amended by this section.
	SECTION ____.  QUALITY-BASED PAYMENT INITIATIVES.  
(a)  Chapter 531, Government Code, is amended by adding Subchapter 
W to read as follows:
SUBCHAPTER W. QUALITY-BASED PAYMENT INITIATIVES PILOT PROGRAMS FOR PROVISION OF HEALTH CARE SERVICES
Sec. 531.951. DEFINITIONS. In this subchapter: (1) "Pay-for-performance payment system" means a system for compensating a health care provider or facility for arranging for or providing health care services to child health plan program enrollees or Medicaid recipients, or both, that is based on the provider or facility meeting or exceeding certain defined performance measures. The compensation system may include sharing realized cost savings with the provider or facility. (2) "Pilot program" means a quality-based payment initiatives pilot program established under this subchapter. Sec. 531.952. PILOT PROGRAM PROPOSALS; DETERMINATION OF BENEFIT TO STATE. (a) Health care providers and facilities and disease or care management organizations may submit proposals to the commission for the implementation through pilot programs of quality-based payment initiatives that provide incentives to the providers and facilities, as applicable, to develop health care interventions for child health plan program enrollees or Medicaid recipients, or both, that are cost-effective to this state and will improve the quality of health care provided to the enrollees or recipients. (b) The commission shall determine whether it is feasible and cost-effective to implement one or more of the proposed pilot programs. In addition, the commission shall examine alternative payment methodologies used in the Medicare program and consider whether implementing one or more of the methodologies, modified as necessary to account for programmatic differences, through a pilot program under this subchapter would achieve cost savings in the Medicaid program while ensuring the use of best practices. Sec. 531.953. PURPOSE AND IMPLEMENTATION OF PILOT PROGRAMS. (a) If the commission determines under Section 531.952 that implementation of one or more quality-based payment initiatives pilot programs is feasible and cost-effective for this state, the commission shall establish one or more programs as provided by this subchapter to test pay-for-performance payment system alternatives to traditional fee-for-service or other payments made to health care providers or facilities participating in the child health plan or Medicaid program, as applicable, that are based on best practices, outcomes, and efficiency, but ensure high-quality, effective health care services. (b) The commission shall administer any pilot program established under this subchapter. The executive commissioner may adopt rules, plans, and procedures and enter into contracts and other agreements as the executive commissioner considers appropriate and necessary to administer this subchapter. (c) The commission may limit a pilot program to: (1) one or more regions in this state; (2) one or more organized networks of health care facilities and providers; or (3) specified types of services provided under the child health plan or Medicaid program, or specified types of enrollees or recipients under those programs. (d) A pilot program implemented under this subchapter must be operated for at least one state fiscal year. Sec. 531.954. STANDARDS; PROTOCOLS. (a) In consultation with the Health Care Quality Advisory Committee established under Section 531.0995, the executive commissioner shall approve quality of care standards, evidence-based protocols, and measurable goals for a pilot program to ensure high-quality and effective health care services. (b) In addition to the standards approved under Subsection (a), the executive commissioner may approve efficiency performance standards that may include the sharing of realized cost savings with health care providers and facilities that provide health care services that exceed the efficiency performance standards. The efficiency performance standards may not create any financial incentive for or involve making a payment to a health care provider that directly or indirectly induces the limitation of medically necessary services. Sec. 531.955. QUALITY-BASED PAYMENT INITIATIVES. (a) The executive commissioner may contract with appropriate entities, including qualified actuaries, to assist in determining appropriate payment rates for a pilot program implemented under this subchapter. (b) The executive commissioner may increase a payment rate, including a capitation rate, adopted under this section as necessary to adjust the rate for inflation. (c) The executive commissioner shall ensure that services provided to a child health plan program enrollee or Medicaid recipient, as applicable, meet the quality of care standards required under this subchapter and are at least equivalent to the services provided under the child health plan or Medicaid program, as applicable, for which the enrollee or recipient is eligible. Sec. 531.956. TERMINATION OF PILOT PROGRAM; EXPIRATION OF SUBCHAPTER. The pilot program terminates and this subchapter expires September 2, 2013. (b) Not later than November 1, 2012, the Health and Human Services Commission shall present a report to the governor, the lieutenant governor, the speaker of the house of representatives, and the members of each legislative committee having jurisdiction over the child health plan and Medicaid programs. For each pilot program implemented under Subchapter W, Chapter 531, Government Code, as added by this section, the report must: (1) describe the operation of the pilot program; (2) analyze the quality of health care provided to patients under the pilot program; (3) compare the per-patient cost under the pilot program to the per-patient cost of the traditional fee-for-service or other payments made under the child health plan and Medicaid programs; and (4) make recommendations regarding the continuation or expansion of the pilot program. SECTION ____. QUALITY-BASED HOSPITAL PAYMENTS. Chapter 531, Government Code, is amended by adding Subchapter X to read as follows:
SUBCHAPTER X. QUALITY-BASED HOSPITAL REIMBURSEMENT SYSTEM
Sec. 531.981. DEFINITIONS. In this subchapter: (1) "DRG methodology" means a diagnoses-related groups methodology. (2) "Potentially preventable complication" means a harmful event or negative outcome with respect to a person, including an infection or surgical complication, that: (A) occurs after the person's admission to a hospital; (B) results from the care or treatment provided during the hospital stay rather than from a natural progression of an underlying disease; and (C) could reasonably have been prevented if care and treatment had been provided in accordance with accepted standards of care. (3) "Potentially preventable readmission" means a return hospitalization of a person within a period specified by the commission that results from deficiencies in the care or treatment provided to the person during a previous hospital stay or from deficiencies in post-hospital discharge follow-up. The term does not include a hospital readmission necessitated by the occurrence of unrelated events after the discharge. The term includes the readmission of a person to a hospital for: (A) the same condition or procedure for which the person was previously admitted; (B) an infection or other complication resulting from care previously provided; (C) a condition or procedure that indicates that a surgical intervention performed during a previous admission was unsuccessful in achieving the anticipated outcome; or (D) another condition or procedure of a similar nature, as determined by the executive commissioner. Sec. 531.982. DEVELOPMENT OF QUALITY-BASED HOSPITAL REIMBURSEMENT SYSTEM. (a) Subject to Subsection (b), the commission shall develop a quality-based hospital reimbursement system for paying Medicaid reimbursements to hospitals. The system is intended to align Medicaid provider payment incentives with improved quality of care, promote coordination of health care, and reduce potentially preventable complications and readmissions. (b) The commission shall develop the quality-based hospital reimbursement system in phases as provided by this subchapter. To the extent possible, the commission shall coordinate the timeline for the development and implementation with the implementation of the Medicaid Information Technology Architecture (MITA) initiative of the Center for Medicaid and State Operations and the ICD-10 code sets initiative and with the ongoing Enterprise Data Warehouse (EDW) planning process to maximize receipt of federal funds. Sec. 531.983. PHASE ONE: COLLECTION AND REPORTING OF CERTAIN INFORMATION. (a) The first phase of the development of the quality-based hospital reimbursement system consists of the elements described by this section. (b) The executive commissioner shall adopt rules for identifying potentially preventable readmissions of Medicaid recipients and the commission shall collect data on present-on-admission indicators for purposes of this section. (c) The commission shall establish a program to provide a confidential report to each hospital in this state regarding the hospital's performance with respect to potentially preventable readmissions. A hospital shall provide the information contained in the report provided to the hospital to health care providers providing services at the hospital. (d) After the commission provides the reports to hospitals as provided by Subsection (c), each hospital will be afforded a period of two years during which the hospital may adjust its practices in an attempt to reduce its potentially preventable readmissions. During this period, reimbursements paid to the hospital may not be adjusted on the basis of potentially preventable readmissions. (e) The commission shall convert hospitals that are reimbursed using a DRG methodology to a DRG methodology that will allow the commission to more accurately classify specific patient populations and account for severity of patient illness and mortality risk. For purposes of hospitals that are not reimbursed using a DRG methodology, the commission may modify data collection requirements to allow the commission to more accurately classify specific patient populations and account for severity of patient illness and mortality risk. Sec. 531.984. PHASE TWO: REIMBURSEMENT ADJUSTMENTS. (a) The second phase of the development of the quality-based hospital reimbursement system consists of the elements described by this section and must be based on the information reported, data collected, and DRG methodology implemented during phase one of the development. (b) Using the information reported by hospitals that are not reimbursed using a DRG methodology during phase one of the development of the quality-based hospital reimbursement system, and using the DRG methodology for hospitals that are reimbursed using the DRG methodology implemented during that phase, the commission shall adjust Medicaid reimbursements to hospitals based on performance in reducing potentially preventable readmissions. An adjustment: (1) may not be applied to a hospital if the patient's readmission to that hospital is classified as a potentially preventable readmission, but that hospital is not the same hospital to which the person was previously admitted; and (2) must be focused on addressing potentially preventable readmissions that are continuing, significant problems, as determined by the commission. Sec. 531.985. PHASE THREE: STUDY OF POTENTIALLY PREVENTABLE COMPLICATIONS. (a) In phase three of the development of the quality-based hospital reimbursement system, the executive commissioner shall adopt rules for identifying potentially preventable complications and the commission shall study the feasibility of: (1) collecting data from hospitals concerning potentially preventable complications; (2) adjusting Medicaid reimbursements based on performance in reducing those complications; and (3) developing reconsideration review processes that provide basic due process in challenging a reimbursement adjustment described by Subdivision (2). (b) The commission shall provide a report to the standing committees of the senate and house of representatives having primary jurisdiction over the Medicaid program concerning the results of the study conducted under this section when the study is completed. (c) Rules adopted by the executive commissioner regarding potentially preventable complications are not admissible in a civil action for purposes of establishing a standard of care applicable to a physician. SECTION ____. REQUIREMENTS OF THIRD-PARTY HEALTH INSURERS. Subchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.0424 to read as follows: Sec. 32.0424. REQUIREMENTS OF THIRD-PARTY HEALTH INSURERS. (a) A third-party health insurer is required to provide to the department, on the department's request, information in a form prescribed by the department necessary to determine: (1) the period during which an individual entitled to medical assistance, the individual's spouse, or the individual's dependents may be, or may have been, covered by coverage issued by the health insurer; (2) the nature of the coverage; and (3) the name, address, and identifying number of the health plan under which the person may be, or may have been, covered. (b) A third-party health insurer shall accept the state's right of recovery and the assignment under Section 32.033 to the state of any right of an individual or other entity to payment from the third-party health insurer for an item or service for which payment was made under the medical assistance program. (c) A third-party health insurer shall respond to any inquiry by the department regarding a claim for payment for any health care item or service reimbursed by the department under the medical assistance program not later than the third anniversary of the date the health care item or service was provided. (d) A third-party health insurer may not deny a claim submitted by the department or the department's designee for which payment was made under the medical assistance program solely on the basis of the date of submission of the claim, the type or format of the claim form, or a failure to present proper documentation at the point of service that is the basis of the claim, if: (1) the claim is submitted by the department or the department's designee not later than the third anniversary of the date the item or service was provided; and (2) any action by the department or the department's designee to enforce the state's rights with respect to the claim is commenced not later than the sixth anniversary of the date the department or the department's designee submits the claim. (e) This section does not limit the scope or amount of information required by Section 32.042. SECTION ____. PREVENTABLE ADVERSE EVENT REPORTING. (a) The heading to Chapter 98, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, is amended to read as follows:
CHAPTER 98. REPORTING OF HEALTH CARE-ASSOCIATED INFECTIONS AND PREVENTABLE ADVERSE EVENTS
(b) Subdivisions (1) and (11), Section 98.001, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, are amended to read as follows: (1) "Advisory panel" means the Advisory Panel on Health Care-Associated Infections and Preventable Adverse Events. (11) "Reporting system" means the Texas Health Care-Associated Infection and Preventable Adverse Events Reporting System. (c) Section 98.051, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, is amended to read as follows: Sec. 98.051. ESTABLISHMENT. The commissioner shall establish the Advisory Panel on Health Care-Associated Infections and Preventable Adverse Events within [the infectious disease surveillance and epidemiology branch of] the department to guide the implementation, development, maintenance, and evaluation of the reporting system. The commissioner may establish one or more subcommittees to assist the advisory panel in addressing health care-associated infections and preventable adverse events relating to hospital care provided to children or other special patient populations. (d) Subsection (a), Section 98.052, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, is amended to read as follows: (a) The advisory panel is composed of 18 [16] members as follows: (1) two infection control professionals who: (A) are certified by the Certification Board of Infection Control and Epidemiology; and (B) are practicing in hospitals in this state, at least one of which must be a rural hospital; (2) two infection control professionals who: (A) are certified by the Certification Board of Infection Control and Epidemiology; and (B) are nurses licensed to engage in professional nursing under Chapter 301, Occupations Code; (3) three board-certified or board-eligible physicians who: (A) are licensed to practice medicine in this state under Chapter 155, Occupations Code, at least two of whom have active medical staff privileges at a hospital in this state and at least one of whom is a pediatric infectious disease physician with expertise and experience in pediatric health care epidemiology; (B) are active members of the Society for Healthcare Epidemiology of America; and (C) have demonstrated expertise in quality assessment and performance improvement or infection control in health care facilities; (4) four additional [two] professionals in quality assessment and performance improvement[, one of whom is employed by a general hospital and one of whom is employed by an ambulatory surgical center]; (5) one officer of a general hospital; (6) one officer of an ambulatory surgical center; (7) three nonvoting members who are department employees representing the department in epidemiology and the licensing of hospitals or ambulatory surgical centers; and (8) two members who represent the public as consumers. (e) Subsections (a) and (c), Section 98.102, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, are amended to read as follows: (a) The department shall establish the Texas Health Care-Associated Infection and Preventable Adverse Events Reporting System within the [infectious disease surveillance and epidemiology branch of the] department. The purpose of the reporting system is to provide for: (1) the reporting of health care-associated infections by health care facilities to the department; (2) the reporting of health care-associated preventable adverse events by health care facilities to the department; (3) the public reporting of information regarding the health care-associated infections by the department; (4) the public reporting of information regarding health care-associated preventable adverse events by the department; and (5) [(3)] the education and training of health care facility staff by the department regarding this chapter. (c) The data reported by health care facilities to the department must contain sufficient patient identifying information to: (1) avoid duplicate submission of records; (2) allow the department to verify the accuracy and completeness of the data reported; and (3) for data reported under Section 98.103 or 98.104, allow the department to risk adjust the facilities' infection rates. (f) Subchapter C, Chapter 98, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, is amended by adding Section 98.1045 to read as follows: Sec. 98.1045. REPORTING OF PREVENTABLE ADVERSE EVENTS. (a) Each health care facility shall report to the department the occurrence of any of the following preventable adverse events involving the facility's patient: (1) a health care-associated adverse condition or event for which the Medicare program will not provide additional payment to the facility under a policy adopted by the federal Centers for Medicare and Medicaid Services; and (2) subject to Subsection (b), an event included in the list of adverse events identified by the National Quality Forum that is not included under Subdivision (1). (b) The executive commissioner may exclude an adverse event described by Subsection (a)(2) from the reporting requirement of Subsection (a) if the executive commissioner, in consultation with the advisory panel, determines that the adverse event is not an appropriate indicator of a preventable adverse event. (g) Subsections (a), (b), and (g), Section 98.106, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, are amended to read as follows: (a) The department shall compile and make available to the public a summary, by health care facility, of: (1) the infections reported by facilities under Sections 98.103 and 98.104; and (2) the preventable adverse events reported by facilities under Section 98.1045. (b) Information included in the [The] departmental summary with respect to infections reported by facilities under Sections 98.103 and 98.104 must be risk adjusted and include a comparison of the risk-adjusted infection rates for each health care facility in this state that is required to submit a report under Sections 98.103 and 98.104. (g) The department shall make the departmental summary available on an Internet website administered by the department and may make the summary available through other formats accessible to the public. The website must contain a statement informing the public of the option to report suspected health care-associated infections and preventable adverse events to the department. (h) Section 98.108, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, is amended to read as follows: Sec. 98.108. FREQUENCY OF REPORTING. In consultation with the advisory panel, the executive commissioner by rule shall establish the frequency of reporting by health care facilities required under Sections 98.103, [and] 98.104, and 98.1045. Facilities may not be required to report more frequently than quarterly. (i) Section 98.109, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, is amended by adding Subsection (b-1) and amending Subsection (e) to read as follows: (b-1) A state employee or officer may not be examined in a civil, criminal, or special proceeding, or any other proceeding, regarding the existence or contents of information or materials obtained, compiled, or reported by the department under this chapter. (e) A department summary or disclosure may not contain information identifying a [facility] patient, employee, contractor, volunteer, consultant, health care professional, student, or trainee in connection with a specific [infection] incident. (j) Sections 98.110 and 98.111, Health and Safety Code, as added by Chapter 359 (S.B. 288), Acts of the 80th Legislature, Regular Session, 2007, are amended to read as follows: Sec. 98.110. DISCLOSURE AMONG CERTAIN AGENCIES [WITHIN DEPARTMENT]. Notwithstanding any other law, the department may disclose information reported by health care facilities under Section 98.103, [or] 98.104, or 98.1045 to other programs within the department, to the Health and Human Services Commission, and to other health and human services agencies, as defined by Section 531.001, Government Code, for public health research or analysis purposes only, provided that the research or analysis relates to health care-associated infections or preventable adverse events. The privilege and confidentiality provisions contained in this chapter apply to such disclosures. Sec. 98.111. CIVIL ACTION. Published infection rates or preventable adverse events may not be used in a civil action to establish a standard of care applicable to a health care facility. (k) As soon as possible after the effective date of this Act, the commissioner of state health services shall appoint two additional members to the advisory panel who meet the qualifications prescribed by Subdivision (4), Subsection (a), Section 98.052, Health and Safety Code, as amended by this section. (l) Not later than February 1, 2010, the executive commissioner of the Health and Human Services Commission shall adopt rules and procedures necessary to implement the reporting of health care-associated preventable adverse events as required under Chapter 98, Health and Safety Code, as amended by this section. SECTION ____. PREVENTABLE ADVERSE EVENT REIMBURSEMENT. (a) Subchapter B, Chapter 32, Human Resources Code, is amended by adding Section 32.0312 to read as follows: Sec. 32.0312. REIMBURSEMENT FOR SERVICES ASSOCIATED WITH PREVENTABLE ADVERSE EVENTS. The executive commissioner of the Health and Human Services Commission shall adopt rules regarding the denial or reduction of reimbursement under the medical assistance program for preventable adverse events that occur in a hospital setting. In adopting the rules, the executive commissioner: (1) shall ensure that the commission imposes the same reimbursement denials or reductions for preventable adverse events as the Medicare program imposes for the same types of health care-associated adverse conditions and the same types of health care providers and facilities under a policy adopted by the federal Centers for Medicare and Medicaid Services; (2) shall consult with the Health Care Quality Advisory Committee established under Section 531.0995, Government Code, to obtain the advice of that committee regarding denial or reduction of reimbursement claims for any other preventable adverse events that cause patient death or serious disability in health care settings, including events on the list of adverse events identified by the National Quality Forum; and (3) may allow the commission to impose reimbursement denials or reductions for preventable adverse events described by Subdivision (2). (b) Not later than September 1, 2010, the executive commissioner of the Health and Human Services Commission shall adopt the rules required by Section 32.0312, Human Resources Code, as added by this section. (c) Rules adopted by the executive commissioner of the Health and Human Services Commission under Section 32.0312, Human Resources Code, as added by this section, may apply only to a preventable adverse event occurring on or after the effective date of the rules. SECTION ____. PATIENT RISK IDENTIFICATION SYSTEM. Subchapter A, Chapter 311, Health and Safety Code, is amended by adding Section 311.004 to read as follows: Sec. 311.004. STANDARDIZED PATIENT RISK IDENTIFICATION SYSTEM. (a) In this section: (1) "Department" means the Department of State Health Services. (2) "Hospital" means a general or special hospital as defined by Section 241.003. The term includes a hospital maintained or operated by this state. (b) The department shall coordinate with hospitals to develop a statewide standardized patient risk identification system under which a patient with a specific medical risk may be readily identified through the use of a system that communicates to hospital personnel the existence of that risk. The executive commissioner of the Health and Human Services Commission shall appoint an ad hoc committee of hospital representatives to assist the department in developing the statewide system. (c) The department shall require each hospital to implement and enforce the statewide standardized patient risk identification system developed under Subsection (b) unless the department authorizes an exemption for the reason stated in Subsection (d). (d) The department may exempt from the statewide standardized patient risk identification system a hospital that seeks to adopt another patient risk identification methodology supported by evidence-based protocols for the practice of medicine. (e) The department shall modify the statewide standardized patient risk identification system in accordance with evidence-based medicine as necessary. (f) The executive commissioner of the Health and Human Services Commission may adopt rules to implement this section. (2) Strike SECTION 5 of the bill (page 2, lines 18 through 22) and substitute the following appropriately numbered SECTION: SECTION ____. This Act takes effect September 1, 2009.