AB 542 Summary

• Requires medical directors and nursing directors of hospitals to annually report adverse events and hospital acquired conditions to their governing boards, including patient outcomes and comparisons to similar institutions.

• Directs the Department of Health Care Services to convene a technical working group by February 1, 2011 to evaluate and recommend nonpayment policies for hospital acquired conditions in the Medi-Cal program, consistent with federal Patient Protection and Affordable Care Act requirements.

• Requires Medi-Cal managed care plans and managed care plans under the Healthy Families Program to implement nonpayment policies for hospital acquired conditions through contracts with health care facilities, preventing facilities from charging patients for denied services.

• Prohibits health care facilities from accepting or retaining patient cost-sharing payments for care and services denied due to hospital acquired conditions.

• Establishes that implementation guidelines do not alter the standard of care in medical malpractice cases and protects health care providers and facilities reporting data from liability for proper data transmission to the state.