S 1329 Session 109 (1991-1992)
S 1329 General Bill, By Hayes
A Bill to amend the Code of Laws of South Carolina, 1976, by adding Article 25
to Chapter 7, Title 44, so as to require that hospital decisions to execute,
renew, modify, or terminate exclusive contracts be based on formal
recommendations of the organized medical staff.
02/25/92 Senate Introduced and read first time SJ-9
02/25/92 Senate Referred to Committee on Medical Affairs SJ-9
A BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976,
BY ADDING ARTICLE 25 TO CHAPTER 7, TITLE 44, SO AS TO
REQUIRE THAT HOSPITAL DECISIONS TO EXECUTE, RENEW,
MODIFY, OR TERMINATE EXCLUSIVE CONTRACTS BE BASED
ON FORMAL RECOMMENDATIONS OF THE ORGANIZED
MEDICAL STAFF.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 7, Title 44, of the 1976 Code is amended by
adding:
"Article 25
Protection of Medical Staff Quality Act
Section 44-7-3010. This article is known as the `Protection of
Medical Staff Quality Act'.
Section 44-7-3020. As used in this article:
(1) `Medical staff' means the formally organized self-governing
body, consisting of physicians and other practitioners who have been
granted medical staff privileges in a hospital, which has responsibility
for the quality of medical care provided to hospital patients.
(2) `Medical staff privileges' means the permission granted to a
physician or other practitioner to render specific patient care services in
a hospital, including the necessary right of access to hospital resources,
equipment, facilities, and personnel.
(3) `Due process rights' means the rights to: written notice of
grounds for a proposal to curtail, restrict or terminate one's medical staff
privileges; a hearing on the merits or demerits of the proposal before one
or more disinterested persons; receipt of written findings and
conclusions on the proposal by one or more disinterested persons; and
such other procedural safeguards as may be contained in the medical
staff bylaws.
Section 44-7-3030. (A) (1) Medical staff peer review
regarding the effect on quality of care resulting from an exclusive
contractual arrangement with any physician or other practitioner and a
resulting recommendation to the hospital governing body is required
when the hospital governing body proposes:
(a) the execution of an exclusive agreement in a previously
open department or service, or both;
(b) the renewal, transfer, or substantive modification of an
exclusive agreement in a particular department or service, or both; and
(c) the termination of an exclusive agreement in a particular
department or service, or both.
(2) The hospital governing board shall follow the medical
staff's recommendation unless it makes specific written findings that the
recommendation is arbitrary, capricious, an abuse of discretion, or
otherwise not in accordance with law.
(B) No person shall exercise clinical privileges in the hospital,
except for those who have been granted temporary privileges, until he
applies for and receives medical staff privileges after a full review of his
qualifications by the organized medical staff.
(C) Whether as a result of any of the proposals referred to in
subsection (A) or otherwise, the medical staff privileges of any medical
staff member may be curtailed, restricted, or terminated only upon a
formal recommendation of the medical staff, only for those reasons
directly related to quality of patient care as is specified in the hospital
medical staff bylaws, and only after the according of due process rights,
pursuant to the procedures specified in the Federal Health Care Quality
Improvement Act of 1986 or in accordance with provisions of the
hospital medical staff bylaws.
Section 44-7-3040. A hospital may not suppress the peer review
procedures or due process rights required by Section 44-7-3030, either
by means of a written contract or through amendments to medical staff
bylaws.
Section 44-7-3050. A hospital may not solicit, require, or accept
any payment as direct or indirect consideration for the award or granting
by it of the right to exercise medical staff privileges, whether pursuant
to exclusive contract or otherwise. This prohibition does not apply to
required payments of medical staff dues or medical society dues that are
required of all members of the medical staff.
Section 44-7-3060. A medical staff member who is aggrieved by
any violation of this article has the right to seek injunctive relief and
damages from a court of competent jurisdiction.
Section 44-7-3070. Compliance with the provisions of this article
constitutes a requirement for granting or renewing the license of a
hospital. The procedures required by this article must be carried out
under the regulations and supervision of the state hospital licensing
board."
SECTION 2. This act takes effect upon approval by the Governor.
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