Chapter 397
2004 -- S 2651
SUBSTITUTE A
Enacted 07/06/04
A N A C T
RELATING
TO HEALTH AND SAFETY -- HEALTH CARE INFORMATION
TECHNOLOGY
AND INFRASTRUCTURE DEVELOPMENT FUND
Introduced
By: Senators Roberts, Felag, Alves, Pichardo, and Paiva-Weed
Date
Introduced: February 11, 2004
It
is enacted by the General Assembly as follows:
SECTION
1. Title 23 of the General Laws entitled "Health and Safety" is
hereby
amended
by adding thereto the following chapter:
CHAPTER
77
HEALTHCARE
INFORMATION TECHNOLOGY AND INFRASTRUCTURE
DEVELOPMENT
FUND
23-77-1.
Legislative findings and purpose. – Research shows that the
application of
information
technology such as electronic medical records, computer-based physician order
entry
and
electronic data interchange, has significant potential for improving healthcare
quality and
safety
and obtaining efficiencies in the healthcare delivery system. The healthcare
system has
been
slower than other sectors of the economy to use advances in information
technology to
achieve
improvements in efficiencies and quality. Hospitals and healthcare providers
face
barriers
in accessing the capital needed to make investments in information technology.
Government,
which pays for about one-third (1/3) of the nation's healthcare cost, has a
substantial
interest
in obtaining cost efficiencies by promoting investment in healthcare
information
technology
and infrastructure. There is a need for coordination and collaboration among
healthcare
payers, providers, consumers and government in designing and implementing a
statewide
interoperable healthcare information infrastructure that includes standards for
administrative
data exchange, clinical support programs, quality performance measures and the
maintenance
of the security and confidentiality of individual patient data. It is the
intent of the
legislature
to promote the implementation of healthcare information technology and the
development
of an interoperable statewide healthcare information infrastructure by creating
a
special
fund to be used to supplement any funds which would otherwise be available for
these
purposes.
23-77-2.
Establishment of the healthcare information technology and infrastructure
development
fund. –
(a) There is established in the department of health, the healthcare
information
technology and infrastructure development fund to be administered by the director
of
the
department of health for the purpose of promoting the development and adoption
of
healthcare
information technologies designed to improve the quality, safety and efficiency
of
healthcare
services and the security of individual patient data.
(b)
Moneys in the fund shall be used for projects authorized by the director of
health and
may
be expended by contract, loan, or grant, to develop, maintain, expand, and
improve the
state's
healthcare information technology infrastructure and to assist healthcare
facilities and
health
service providers in adopting healthcare information technologies shown to
improve
healthcare
quality, safety or efficiency. Such projects shall incorporate the goal of
maintaining
the
security and confidentiality of individual patient data, and separate projects
for that purpose
may
also be authorized from the fund. The director of health shall develop criteria
for the
selection
of projects to be funded from the fund in consultation with the healthcare
information
technology
and infrastructure advisory committee created in section 23-77-4.
(c) Any moneys provided by loan shall be disbursed for periods not exceeding
twenty-
five
(25) years and at an annual rate of interest not exceeding five percent (5%).
(d)
The director of the department of health, in consultation with the state
healthcare
information
technology advisory committee, shall establish criteria for eligible healthcare
information
technology and infrastructure projects to be funded under this chapter.
23-77-3.
Funds received from insurers or others. – (a) The director of health
is
authorized
to accept any grant, devise, bequest, donation, gift, services in kind,
assignment of
money,
bonds of other valuable securities, moneys appropriated by the general assembly
or
received
from insurers, for deposit in and credit of the fund.
(b)
The director of health is authorized to expend from the healthcare information
technology
and infrastructure development fund any moneys deposited into the fund for the
purposes
set forth in section 23-77-2.
(c)
Notwithstanding any provision of their articles of incorporation, by-laws, or
other
enabling
documents or laws to the contrary, a health insurer or health plan is
authorized to
allocate
sums of money, derived from the collections of premiums, to the healthcare
information
technology
and infrastructure development fund.
(d)
Notwithstanding any provision of their articles of incorporation, by-laws, or
other
enabling
documents or law to the contrary, an insurer is further authorized to expend on
an annual
basis
a sum of moneys equal to not more than five percent (5%) of its previous year's
premium
income
for a project approved by the director of health, with the concurrence of the
director of
business
regulation. The director of health is authorized to approve projects which are
in
conformance
with the purposes of section 23-77-2.
23-77-4. Creation of the Rhode Island healthcare information technology
advisory
committee.
– (a)
The director of health shall establish a healthcare information technology and
infrastructure
advisory committee to advise in the following matters:
(1)
Assessment of use of healthcare information technology by the state's licensed
healthcare
providers and facilities;
(2)
Recommendations for implementing a statewide interoperable healthcare
information
infrastructure
to include estimates of necessary resources and for determining standards for
administrative
data exchange, clinical support programs, and the maintenance of the security
and
confidentiality
of individual patient data;
(3)
Criteria for selection of projects to be funded with moneys from the fund;
(4)
Other related issues as requested by the director of health.
(b)
The members of the healthcare information technology and infrastructure
advisory
committee
shall include the director or director's designees of the departments of health
and
human
services and additional members to be appointed by the director of the
department of
health
to include persons representing Rhode Island licensed hospitals and other
licensed
facilities/providers,
the medical and nursing professions, health insurers and health plans, the
state
quality improvement organization and other parties, such as consumer advisory
organizations,
with an interest and expertise in health care information technology. The
director
may
designate an existing state nonprofit organization whose primary purpose is to
improve
healthcare
quality to fulfill the responsibilities of the Rhode Island Healthcare
Information
Technology
Advisory Committee.
23-77-5. Annual report. – The director of the department of health
shall prepare and
issue
an annual report not later than January 30th of each year outlining in specific
detail the
amount
of funds spent from the fund in the previous year, a status report on the
projects funded,
progress
to date in implementing a statewide healthcare information infrastructure, and
recommendations
for future investments and projects.
23-77-6.
Severability. - If the provisions of this chapter or the application
thereof to any
person
or circumstances is held invalid, such invalidity shall not affect other
provisions or
applications
of the chapter which can be given effect without the invalid provision or
application,
and
to this end the provisions of the chapter are declared to be severable.
SECTION
2. This act shall take effect upon passage.
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LC02640/SUB
A
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