SENATE BILL No. 566
DIGEST OF INTRODUCED BILL
Citations Affected: None (noncode).
Synopsis: Medical informatics commission. Establishes the medical
informatics commission. Requires the commission to conduct a study
or contract for a study to be conducted on health care information and
communication technology. Appropriates to the commission an amount
sufficient to contract for the performance of the study. Requires the
commission to provide biannual reports and a final report to the general
assembly concerning a plan and recommendations on the creation,
implementation, and maintenance of a health care information and
communication technology system. Requires the commission to hold
a public hearing before providing the final report to the general
assembly. Requires the state department of health to provide staff for
and pay the expenses of the commission.
Effective: July 1, 2005.
January 20, 2005, read first time and referred to Committee on Economic Development
First Regular Session 114th General Assembly (2005)
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between statutes enacted by the 2004 Regular Session of the General Assembly.
SENATE BILL No. 566
A BILL FOR AN ACT concerning health and to make an
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: ; (05)IN0566.1.1. -->
SECTION 1. [EFFECTIVE JULY 1, 2005] (a) As used in this
SECTION, "commission" means the medical informatics
commission established by subsection (c).
(b) As used in this SECTION, "health care provider" means a
licensed physician or an agent of a physician.
(c) The medical informatics commission is established.
(d) The commission consists of fourteen (14) members as
(1) The commissioner of the state department of health or the
commissioner's designee, who serves as chairperson of the
(2) The director of the office of Medicaid policy and planning
or the director's designee.
(3) The commissioner of insurance or the commissioner's
(4) Two (2) licensed physicians who are actively engaged in
the practice of medicine.
(5) Two (2) individuals who are engaged in the administration
of a hospital licensed under IC 16-21.
(6) One (1) individual who represents an insurer (as defined
in IC 27-1-2-3) that issues or delivers a policy of accident and
sickness insurance (as defined in IC 27-8-5-1).
(7) One (1) individual who represents a health maintenance
organization (as defined in IC 27-13-1-19).
(8) One (1) individual who has legal expertise in matters
concerning the privacy and security of health care
(9) One (1) member of the intelenet commission established by
(10) One (1) individual who is engaged in the business of
computer information technology.
(11) One (1) individual engaged in the business of health care
(12) One (1) individual from the business community.
The governor shall appoint the members of the commission
designated by subdivisions (4) through (12). A member appointed
to the commission by the governor serves a term of two (2) years.
(e) If a vacancy occurs on the commission, the governor shall
appoint a new member to serve for the remainder of the unexpired
term. A vacancy shall be filled from the same group that was
represented by the outgoing member.
(f) The commission shall elect from the commission members a
vice chairperson and a secretary.
(g) Except as provided in subsection (t), the state department of
(1) provide administrative support for the commission; and
(2) pay the expenses of the commission.
(h) Eight (8) members of the commission constitute a quorum
for the transaction of all business of the commission. The
affirmative votes of a majority of the voting members appointed to
the commission are required for the commission to take action on
(i) A member of the commission who is not a state employee is
entitled to the minimum salary per diem provided by
IC 4-10-11-2.1(b). A member is entitled to reimbursement for
traveling expenses actually incurred in connection with the
member's duties, as provided in the state policies and procedures
established by the Indiana department of administration and
approved by the budget agency.
(j) Each member of the commission who is a state employee is
entitled to reimbursement for traveling expenses as provided under
IC 4-13-1-4 and other expenses actually incurred in connection
with the member's duties as provided by the Indiana department
of administration and approved by the budget agency.
(k) The commission shall:
(1) conduct a study; or
(2) contract for a study to be conducted;
on health care information and communication technology in
(l) The commission may request health care information and
communication technology contractors to provide proposals for the
performance of the study under subsection (k). The proposals must
(1) an organizational structure for the study; and
(2) the feasibility of obtaining a governmental or private grant
to assist in funding the study.
(m) The commission may, with the approval of the budget
agency, award a contract for the performance of the study under
subsection (k) to a recognized expert in health care information
and communication technology.
(n) The commission shall:
(1) identify and seek assistance from the major participants in
health care delivery and reimbursement systems who would
be affected by a uniform statewide health care information
and communication technology system; and
(2) establish a plan for the creation of a uniform statewide
health care information and communication technology
(o) The plan under subsection (n)(2) must include:
(1) a determination of:
(A) the feasibility of; and
(B) a plan for;
developing and implementing a health care information
infrastructure system to be used by health care providers and
other potential users;
(2) the identification of an organizational structure for:
(A) the development of an open, flexible, and interoperable
technology infrastructure; and
(B) the continued operation and maintenance of the health
care information and communication technology system
recommended under this SECTION;
(3) an analysis of:
(A) an existing information technology system of a health
care provider, a government agency, or a third party
(B) the feasibility of incorporating an existing system into
the health care information and communication technology
system recommended under this SECTION;
(4) the identification of an available governmental or private
grant for the implementation of a health care information and
communication technology system;
(5) a business plan for financing the development and
maintenance of the technology infrastructure, including an
available governmental or private grant;
(6) the identification of potential problems and recommended
solutions regarding matters involving privacy, security,
federal mandates or preemption, and antitrust laws;
(7) an analysis of the current capabilities of the public and
private telecommunications systems in Indiana to support the
type and volume of data transmission required by the health
care information and communication technology system
recommended under this SECTION; and
(8) a recommendation that considers the following features:
(A) A provision to guarantee security and privacy for all
health care providers, patients, and potential users of the
(B) A provision for an interoperable personal health
record, including a unique patient identifier.
(C) The demonstrable and measurable ability to:
(i) improve the quality of health care;
(ii) improve patient safety;
(iii) reduce medical errors; and
(iv) reduce duplication of health care services.
(D) The ability to gather, store, and recall data efficiently
and cost effectively.
(E) The ability for health care providers and other
potential users to quickly access reliable, evidence based,
and current treatment guidelines, standards, and
(F) The ability to provide rapid point of care access to
(G) A provision to enhance public health through:
(i) population based epidemiological studies;
(ii) automatic notification of reportable diseases; and
(iii) maintenance of statutorily mandated and voluntarily
reported statistical databases and registries.
(H) A method for financing initial and continuing system
related costs of health care providers, including user fees.
(I) Other appropriate features.
(p) The commission shall:
(1) if a contract is awarded under subsection (m), oversee and
coordinate contractor performance; and
(2) provide to the general assembly:
(A) a biannual progress report before January 1 and July
1 of each year; and
(B) a final report not later than November 1, 2006.
(q) The commission's final report under subsection (p)(2)(B)
(1) review the:
(A) study conducted by a recognized expert in health care
information and communication technology, if applicable;
(B) the commission's study; and
(2) make recommendations regarding creating and
implementing a plan for a health care information and
communication technology system as required under
(r) The commission shall, before providing the final report
under subsection (p)(2)(B):
(1) issue drafts of the recommended final plan for public
(2) hold at least one (1) public meeting in a central location in
Indiana to receive public comments on the plan.
(s) The commission shall provide a report under subsection (p)
in an electronic format under IC 5-14-6 to the general assembly
through the legislative council.
(t) If the commission, with the approval of the budget agency
under subsection (m), awards a contract for the performance of the
study under subsection (k), there is appropriated to the health care
data commission from the state general fund an amount sufficient
to fund the contract beginning July 1, 2005, and ending November
(u) This SECTION expires December 31, 2006.