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.

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.

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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