House Amendment 2
S 164 - Session 125 (2023-2024)
State Health Facility Licensure Act

Rep. Beach proposes the following amendment (LC-164.VR0035H):

Amend the bill, as and if amended, SECTION 9, by striking Section 44-7-266 and inserting:

 Section 44-7-266.(A) In order to be licensed by the department, a health care facility is prohibited from including any clauses that restrict the right of a physician to practice after termination of the relationship in any contract or agreement which creates or establishes an employment or any other form of professional relationship with a physician; provided, however, that the health care facility may require a physician who has worked for the health care facility three years or less to repay all or a portion of the actual costs of the following: relocation expenses, a signing bonus or other renumeration to induce the physician to relocate or establish a health care practice in a specified geographic area, or recruiting, education or training expenses, if the  specific items and value of each item the health care facility seeks in repayment must be outlined within the agreement at the time of signing; provided further, however, that the health care facility may not in any contract or agreement prevent a physician from complying with his ethical duties to the patient upon departure as set forth in regulations which shall be promulgated by the Board of Medical Examiners, and may be fined for each violation in an amount set forth in such regulations. The requirements of this section shall apply only to new contracts or renewals of contracts entered into on or after the effective date of this section.

 (B) The prohibitions as to contract or agreements set forth in subparagraph (A) shall apply only to the clauses that restrict the right of a physician to practice after termination of the relationship, and shall not apply to any other clause including, without limitation, those pertaining to the protection of medical trade secrets.

 (C) In order to be licensed by the department, a hospital is prohibited from using economic criteria unrelated to quality of care or professional competency in determining an individual's qualifications for initial or continuing hospital medical staff membership or privileges.

(D) The requirements of this section shall apply to new contracts or renewals of contracts entered into on or after the effective date of this section. 

(E) In order to be licensed by the department, any ambulatory surgical facility established or constructed after the effective date of this section and which does not require a Certificate of Need under this chapter, shall provide indigent/charity care in one of the amounts below after it has been in operation for two calendar years: 

 (1) If the ambulatory surgical facility provides care to Medicaid beneficiaries, it must provide uncompensated indigent/charity care to the underinsured or medically indigent in an amount equal to or greater than two percent of its adjusted gross revenue; or 

 (2) If the ambulatory surgical facility does not provide care to Medicaid beneficiaries, it must provide uncompensated indigent/charity care to the underinsured or medically indigent in an amount equal to or greater than three percent of its adjusted gross revenue. 

 (3) For purposes of this section, "medically indigent" is defined as in Section 44-6-5(5). 

 (4) An ambulatory surgical facility subject to this provision must provide annual reports to the department to demonstrate its compliance. Noncompliance of this provision shall result in a monetary penalty in the amount of the difference between the services which the facility is required to provide and the amount actually provided. 

(F) The department shall promulgate regulations within one year of the effective date of this act setting forth the necessary duties to comply with this provision.