Bill Text: HI SB3105 | 2016 | Regular Session | Amended
Bill Title: Health Care Providers; Financial Interest; Self-referral; Referral Practices; Disclosure
Spectrum: Moderate Partisan Bill (Democrat 8-1)
Status: (Engrossed - Dead) 2016-03-11 - Re-referred to HLT/CPC, JUD, referral sheet 27 [SB3105 Detail]
Download: Hawaii-2016-SB3105-Amended.html
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THE SENATE |
S.B. NO. |
3105 |
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TWENTY-EIGHTH LEGISLATURE, 2016 |
S.D. 1 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO HEALTH CARE REFERRALS.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that self-referrals, which occur when a health care provider refers a patient for services or treatments at facilities in which the health care provider has a financial interest, raise questions about financial and medical conflicts of interest. The legislature further finds that national and government studies have shown that physician ownership of health care facilities may lead to higher rates of self-referral, unnecessary testing, and overutilization of services.
The legislature additionally finds that the recent decision in Pac. Radiation Oncology, LLC, v. Queen's Med. Ctr., 2014 WL 6749117 (D. Haw. Nov. 30, 2014), prohibits physicians from referring patients to treatment centers in which the physicians have a financial interest only for services subject to no-fault motor vehicle insurance. This distinction created by the court allows physicians to refer patients to facilities in which the physician has a financial interest for all other kinds of injury or sickness not arising from motor vehicle accidents.
Accordingly, the purpose of this Act is to clarify that a health care provider who refers patients to facilities in which the health care provider has a financial interest must provide patients with sufficient information regarding the financial incentives for the referral, in order to allow the patient to make meaningful treatment decisions.
SECTION 2. Chapter 451D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§451D- Prohibited health care provider self-referral practices. (a) No health care provider shall refer, for any service or treatment, a patient to any entity in which the referring health care provider has a financial interest unless the referring health care provider has disclosed that financial interest to the patient.
(b) The health care provider shall make the disclosure required by this section in advance and in writing, and shall obtain the signature of the patient and retain the disclosure form for a period of two years. The health care provider shall include in the disclosure a statement indicating that the patient is free to choose a different health care provider.
(c) The regulated industries complaints office of the department may initiate investigations and disciplinary action to enforce violations of this section.
(d) A violation of this section shall be deemed an unfair method of competition and an unfair or deceptive trade act or practice in violation of section 480-2.
(e) For the purposes of this section:
"Financial interest" means an ownership or investment interest through debt, equity, or any other means. "Financial interest" does not mean salary or other compensation paid to health care providers by a health maintenance organization, or any compensation arrangement involving payment by a group practice that contracts with a health maintenance organization to a health care provider in the same group practice or entity affiliated with the health maintenance organization for services provided to a member of the health maintenance organization.
"Health care provider" means any person who is licensed by the department of commerce and consumer affairs to provide health care services pursuant to chapter 436E, 442, 448, 452, 453, 455, 457G, 459, 461J, 463E, or 465."
SECTION 3. New statutory material is underscored.
SECTION 4. This Act shall take effect on January 1, 2050.
Report Title:
Health Care Providers; Financial Interest; Self-referral; Referral Practices; Disclosure
Description:
Requires that health care providers who refer patients to facilities in which the provider has a financial interest disclose the financial incentives associated with the referral to patients, and establishes that failure to do so is an unfair or deceptive trade act or practice. Effective 1/1/2050. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
