HB 897 Summary

• Creates the Patient Compensation System as an alternative to medical malpractice litigation for avoidable medical injuries, administered by a 11-member Patient Compensation Board with staff including chief medical officer and chief compensation officer.

• Requires healthcare providers to participate in the system and pay annual contributions ($100-$600 for individual providers, depending on license type, and per-bed fees for facilities) or opt out, with funds deposited in a Patient Compensation Trust Fund.

• Establishes a three-tier review process: initial medical review, expedited review if provider supports application, and formal medical review with independent medical review panels using preponderance of evidence standard.

• Provides eligible applicants with compensation determined by a board-approved schedule, offset by collateral source payments, with awards payable within 14 days and unpaid awards accruing 18% annual interest after 45 days.

• Makes this system the exclusive remedy for participating providers, prohibits reporting to National Practitioner Data Bank, and applies retroactively to medical incidents where litigation notice was not mailed before July 1, 2013; effective July 1, 2013.