As Introduced

 

126th General Assembly

Regular Session

2005-2006

S. B. No. 88

 

Senators Coughlin, Goodman 

 


A BILL

To amend section 2305.113 and to enact sections 2339.01 to 2339.17 of the Revised Code to establish a pilot program mandating arbitration for claims of medical negligence prior to the filing of a complaint and to terminate the provisions of this act ten years after the effective date of this act by repealing sections 2339.01, 2339.02, 2339.03, 2339.04, 2339.05, 2339.06, 2339.07, 2339.08, 2339.09, 2339.10, 2339.11, 2339.12, 2339.13, 2339.14, 2339.15, 2339.16, and 2339.17 of the Revised Code on that date.


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1. That section 2305.113 be amended and sections 2339.01, 2339.02, 2339.03, 2339.04, 2339.05, 2339.06, 2339.07, 2339.08, 2339.09, 2339.10, 2339.11, 2339.12, 2339.13, 2339.14, 2339.15, 2339.16, and 2339.17 of the Revised Code be enacted to read as follows:

Sec. 2305.113. (A) Except as otherwise provided in this section and Chapter 2339. of the Revised Code, an action upon a medical, dental, optometric, or chiropractic claim shall be commenced within one year after the cause of action accrued.

(B)(1)(a) If prior to the expiration of the one-year period specified in division (A) of this section, a claimant who allegedly possesses a medical, dental, optometric, or chiropractic claim gives to the person who is the subject of that claim written notice that the claimant is considering bringing an action upon that claim, that action may be commenced against the person notified at any time within one hundred eighty days after the notice is so given.

(b) When Chapter 2339. of the Revised Code is applicable, an action upon the medical claim may be commenced by a claimant up to sixty days after the arbitration panel serves all parties to the claim with the panel's evaluation.

(2) An insurance company shall not consider the existence or nonexistence of a written notice described in division (B)(1) of this section in setting the liability insurance premium rates that the company may charge the company's insured person who is notified by that written notice.

(C) Except as to persons within the age of minority or of unsound mind as provided by section 2305.16 of the Revised Code, and except as provided in division (D) of this section, both of the following apply:

(1) No action upon a medical, dental, optometric, or chiropractic claim shall be commenced more than four years after the occurrence of the act or omission constituting the alleged basis of the medical, dental, optometric, or chiropractic claim.

(2) If an action upon a medical, dental, optometric, or chiropractic claim is not commenced within four years after the occurrence of the act or omission constituting the alleged basis of the medical, dental, optometric, or chiropractic claim, then, any action upon that claim is barred.

(D)(1) If a person making a medical claim, dental claim, optometric claim, or chiropractic claim, in the exercise of reasonable care and diligence, could not have discovered the injury resulting from the act or omission constituting the alleged basis of the claim within three years after the occurrence of the act or omission, but, in the exercise of reasonable care and diligence, discovers the injury resulting from that act or omission before the expiration of the four-year period specified in division (C)(1) of this section, the person may commence an action upon the claim not later than one year after the person discovers the injury resulting from that act or omission.

(2) If the alleged basis of a medical claim, dental claim, optometric claim, or chiropractic claim is the occurrence of an act or omission that involves a foreign object that is left in the body of the person making the claim, the person may commence an action upon the claim not later than one year after the person discovered the foreign object or not later than one year after the person, with reasonable care and diligence, should have discovered the foreign object.

(3) A person who commences an action upon a medical claim, dental claim, optometric claim, or chiropractic claim under the circumstances described in division (D)(1) or (2) of this section has the affirmative burden of proving, by clear and convincing evidence, that the person, with reasonable care and diligence, could not have discovered the injury resulting from the act or omission constituting the alleged basis of the claim within the three-year period described in division (D)(1) of this section or within the one-year period described in division (D)(2) of this section, whichever is applicable.

(E) As used in this section:

(1) "Hospital" includes any person, corporation, association, board, or authority that is responsible for the operation of any hospital licensed or registered in the state, including, but not limited to, those that are owned or operated by the state, political subdivisions, any person, any corporation, or any combination of the state, political subdivisions, persons, and corporations. "Hospital" also includes any person, corporation, association, board, entity, or authority that is responsible for the operation of any clinic that employs a full-time staff of physicians practicing in more than one recognized medical specialty and rendering advice, diagnosis, care, and treatment to individuals. "Hospital" does not include any hospital operated by the government of the United States or any of its branches.

(2) "Physician" means a person who is licensed to practice medicine and surgery or osteopathic medicine and surgery by the state medical board or a person who otherwise is authorized to practice medicine and surgery or osteopathic medicine and surgery in this state.

(3) "Medical claim" means any claim that is asserted in any civil action against a physician, podiatrist, hospital, home, or residential facility, against any employee or agent of a physician, podiatrist, hospital, home, or residential facility, or against a licensed practical nurse, registered nurse, advanced practice nurse, physical therapist, physician assistant, emergency medical technician-basic, emergency medical technician-intermediate, or emergency medical technician-paramedic, and that arises out of the medical diagnosis, care, or treatment of any person. "Medical claim" includes the following:

(a) Derivative claims for relief that arise from the medical diagnosis, care, or treatment of a person;

(b) Claims that arise out of the medical diagnosis, care, or treatment of any person and to which either of the following applies:

(i) The claim results from acts or omissions in providing medical care.

(ii) The claim results from the hiring, training, supervision, retention, or termination of caregivers providing medical diagnosis, care, or treatment.

(c) Claims that arise out of the medical diagnosis, care, or treatment of any person and that are brought under section 3721.17 of the Revised Code.

(4) "Podiatrist" means any person who is licensed to practice podiatric medicine and surgery by the state medical board.

(5) "Dentist" means any person who is licensed to practice dentistry by the state dental board.

(6) "Dental claim" means any claim that is asserted in any civil action against a dentist, or against any employee or agent of a dentist, and that arises out of a dental operation or the dental diagnosis, care, or treatment of any person. "Dental claim" includes derivative claims for relief that arise from a dental operation or the dental diagnosis, care, or treatment of a person.

(7) "Derivative claims for relief" include, but are not limited to, claims of a parent, guardian, custodian, or spouse of an individual who was the subject of any medical diagnosis, care, or treatment, dental diagnosis, care, or treatment, dental operation, optometric diagnosis, care, or treatment, or chiropractic diagnosis, care, or treatment, that arise from that diagnosis, care, treatment, or operation, and that seek the recovery of damages for any of the following:

(a) Loss of society, consortium, companionship, care, assistance, attention, protection, advice, guidance, counsel, instruction, training, or education, or any other intangible loss that was sustained by the parent, guardian, custodian, or spouse;

(b) Expenditures of the parent, guardian, custodian, or spouse for medical, dental, optometric, or chiropractic care or treatment, for rehabilitation services, or for other care, treatment, services, products, or accommodations provided to the individual who was the subject of the medical diagnosis, care, or treatment, the dental diagnosis, care, or treatment, the dental operation, the optometric diagnosis, care, or treatment, or the chiropractic diagnosis, care, or treatment.

(8) "Registered nurse" means any person who is licensed to practice nursing as a registered nurse by the board of nursing.

(9) "Chiropractic claim" means any claim that is asserted in any civil action against a chiropractor, or against any employee or agent of a chiropractor, and that arises out of the chiropractic diagnosis, care, or treatment of any person. "Chiropractic claim" includes derivative claims for relief that arise from the chiropractic diagnosis, care, or treatment of a person.

(10) "Chiropractor" means any person who is licensed to practice chiropractic by the state chiropractic board.

(11) "Optometric claim" means any claim that is asserted in any civil action against an optometrist, or against any employee or agent of an optometrist, and that arises out of the optometric diagnosis, care, or treatment of any person. "Optometric claim" includes derivative claims for relief that arise from the optometric diagnosis, care, or treatment of a person.

(12) "Optometrist" means any person licensed to practice optometry by the state board of optometry.

(13) "Physical therapist" means any person who is licensed to practice physical therapy under Chapter 4755. of the Revised Code.

(14) "Home" has the same meaning as in section 3721.10 of the Revised Code.

(15) "Residential facility" means a facility licensed under section 5123.19 of the Revised Code.

(16) "Advanced practice nurse" means any certified nurse practitioner, clinical nurse specialist, certified registered nurse anesthetist, or certified nurse-midwife who holds a certificate of authority issued by the board of nursing under Chapter 4723. of the Revised Code.

(17) "Licensed practical nurse" means any person who is licensed to practice nursing as a licensed practical nurse by the board of nursing pursuant to Chapter 4723. of the Revised Code.

(18) "Physician assistant" means any person who holds a valid certificate of registration or temporary certificate of registration issued pursuant to Chapter 4730. of the Revised Code.

(19) "Emergency medical technician-basic," "emergency medical technician-intermediate," and "emergency medical technician-paramedic" means any person who is certified under Chapter 4765. of the Revised Code as an emergency medical technician-basic, emergency medical technician-intermediate, or emergency medical technician-paramedic, whichever is applicable.

Sec. 2339.01.  As used in sections 2339.01 to 2339.17 of the Revised Code:

(A) "Health care facility" means a clinic, ambulatory surgical facility, trauma facility, emergency department, office of a health care professional or associated group of health care professionals, training institution for health care professionals, or any other place where medical or other health-related diagnosis, care, or treatment is provided to persons.

(B) "Health care professional" means a physician authorized under Chapter 4731. of the Revised Code to practice medicine and surgery or osteopathic medicine and surgery, or podiatric medicine and surgery.

(C) "Hospital" means any person, corporation, association, board, or authority that is responsible for the operation of any hospital licensed or registered in the state, including, but not limited to, those that are owned or operated by the state, political subdivisions, any person, any corporation, or any combination of the state, political subdivisions, persons, and corporations. "Hospital" also includes any person, corporation, association, board, or authority that is responsible for the operation of any clinic that employs a full-time staff of physicians practicing in more than one recognized medical specialty and rendering medical or other health-related advice, diagnosis, care, and treatment to individuals. "Hospital" does not include any hospital operated by the government of the United States or any of its branches.

(D) "Medical negligence" means a negligent act or an omission to act by a health care professional, hospital, or health care facility in the rendering of health care services that are within the scope of the services for which the health care professional, hospital, or health care facility is licensed or accredited which act or omission is the proximate cause of personal injury or wrongful death.

Sec. 2339.02.  (A) The superintendent of insurance shall establish a pilot program to determine the benefits of using arbitration in disputes as to the medical negligence of a health care professional, hospital, or health care facility.

(B) Five years after the effective date of sections 2339.01 to 2339.17 of the Revised Code, the superintendent shall submit a preliminary written report on the use of arbitration panels by the pilot program to the governor, the speaker of the house of representatives, and the president of the senate. The report also shall outline the superintendent's findings on the results of arbitration under the pilot program. The superintendent shall issue a final written report within one year after the conclusion of the pilot program to the governor, the speaker of the house of representatives, and the president of the senate.

Sec. 2339.03.  (A) Claims alleging medical negligence are subject to sections 2339.01 to 2339.17 of the Revised Code. A claimant shall not commence an action alleging medical negligence against a health care professional, hospital, or health care facility unless the claimant has given the health care professional, hospital, or health care facility written notice pursuant to this section, not less than one hundred eighty days before commencing the action, of the claimant's intent to file a complaint. The time periods for filings and responses set forth in sections 2339.03 and 2339.04 of the Revised Code does not alter or affect this minimum period. This section shall not affect the time limits placed on the commencement of actions under section 2305.113 of the Revised Code.

(B) The required written notice shall be mailed by certified mail to the last known business or residential address of the health care professional, hospital, or health care facility that is the subject of the claim. Proof of the receipt of the notice constitutes prima-facie evidence of the provision of the notice and compliance with this section. If a business or residential address reasonably can not be ascertained, the notice shall be mailed via certified mail to the address where the applicable health care services were rendered.

(C) Notwithstanding the time limit set by division (A) of this section, a claimant may give the required written notice to a health care professional, hospital, or health care facility up to ninety days before commencing an action, when all of the following conditions apply:

(1) The claimant previously gave timely written notice to other health care professionals, hospitals, or health care facilities involved in the claim;

(2) The one hundred eighty-day notice period expired as to the health care professionals, hospitals, and other health care facilities that received notice under division (C)(1) of this section;

(3) The claimant has filed a complaint and commenced an action alleging medical negligence against one or more of the health care professionals, hospitals, or health care facilities described in division (C)(1) of this section;

(4) Before filing the complaint, the claimant did not identify and could not reasonably have been expected to identify a health care professional, hospital, or health care facility required as a party to the claim to be given timely written notice by the claimant.

(D) The written notice required by this section shall contain all of the following information:

(1) The factual basis for the claim;

(2) The standard of practice or care alleged by the claimant to be applicable to the relevant health care services;

(3) The manner in which it is alleged that the applicable standard of practice or care was breached by the health care professional, hospital, or health care facility;

(4) The action that allegedly should have been taken to achieve compliance with the stated standard of practice or care;

(5) The manner in which it is alleged that the breach of the standard of practice or care was the proximate cause of the injury claimed in the notice;

(6) The names of all health care professionals, hospitals, and health care facilities that the claimant is notifying under this section in relation to the claim.

(E) Within fifty days after giving the required written notice, the claimant shall allow the health care professional, hospital, or health care facility notified, or their attorney, access to all of the medical records related to the claim that are in the claimant's control, and shall furnish releases for any medical records related to the claim that are not in the claimant's control but of which the claimant has knowledge. Within fifty days after receiving notice pursuant to this section, the health care professional, hospital, or health care facility shall allow the claimant or the claimant's attorney access to all medical records related to the claim that are in control of the health care professional, hospital, or health care facility. This division does not restrict a health care professional, hospital, or health care facility that receives notice pursuant to this section from communicating with other health care professionals, hospitals, or health care facilities and acquiring medical records as otherwise permitted by the Revised Code.

(F) After the initial written notice is given to a health care professional, hospital, or health care facility pursuant to this section, no additional days shall be added to the one hundred eighty-day waiting period irrespective of the number of additional parties subsequently notified in regard to that claim.

(G) Within one hundred fifty days after receiving notice pursuant to this section, the health care professional, hospital, or health care facility notified, or their attorney, if denying the claim, shall furnish a written response to the claimant or the claimant's attorney that contains all of the following information and statements:

(1) The factual basis for any defense to the claim;

(2) The standard of practice or care that the health care professional, hospital, or health care facility alleges to be applicable to the health care services rendered;

(3) A statement by the health care professional, hospital, or health care facility that the applicable standard of practice or care was complied with and the manner in which compliance was achieved;

(4) The reason that the health care professional, hospital, or health care facility contends that the claimant's alleged injury is unrelated to the health care services rendered.

(H) If the claimant or the claimant's attorney does not receive the written response required under division (G) of this section within the time prescribed, the claimant may thereafter commence an action alleging medical negligence against the health care professional, hospital, or health care facility.

Sec. 2339.04.  (A) If a claim is made alleging medical negligence, the health care professional, hospital, or health care facility named, instead of responding pursuant to section 2339.03 of the Revised Code, may file a motion with the court for dismissal of the claim, accompanied by an affidavit of noninvolvement. The motion and affidavit, and the parties' actions related thereto, shall be governed by section 2323.45 of the Revised Code.

(B) The parties to a medical negligence claim, and their attorneys, may communicate with persons in order to obtain information relevant to the subject matter of the medical negligence claim. The parties to a medical negligence claim, and their attorneys, shall obtain discovery, including the conduct of any necessary interrogatories, request for production of documents, and depositions relating to the subject matter of the claim. Any person disclosing information pursuant to this division is not in violation of any duty or obligation owed to the parties under other provisions of the Revised Code.

Sec. 2339.05.  No person shall be deemed competent to give expert testimony in a claim alleging medical negligence unless the person meets the requirements for an expert witness under section 2743.43 of the Revised Code.

Sec. 2339.06.  No civil action against a health care professional, hospital, or health care facility based upon acts or omissions subject to sections 2339.01 to 2339.17 of the Revised Code, or against persons providing related health care or treatment, whether or not they are party to a medical negligence claim based on those acts or omissions, shall be taken except pursuant to sections 2339.01 to 2339.17 of the Revised Code.

Sec. 2339.07.  (A) If at any time a claimant alleging medical negligence enters into a settlement agreement with a respondent concerning the claim, whether or not the settlement agreement was entered into under court supervision, the claimant and respondent or the claimant's and respondent's attorneys shall jointly file a complete written copy of the settlement agreement with the superintendent of insurance. The filing shall be made within thirty days after the parties enter into the settlement agreement.

(B) Information filed with the superintendent under this section is confidential except for use by the department of insurance for general statistical purposes.

Sec. 2339.08. Prior to the filing of a complaint, all claims alleging medical negligence shall be arbitrated in accordance with sections 2339.01 to 2339.17 of the Revised Code.

Sec. 2339.09.  (A) The panel shall consist of three members from the American health lawyers alternative dispute resolution service, one selected by the claimants, one selected by the respondents, and a third member agreed to by those members, to serve as the chairperson of the panel.

(B) The grounds for disqualification of an arbitrator shall be the same as that provided by the Revised Code and court rules for the disqualification of a judge.

(C) The parties shall share the cost of the arbitration, however, the claimants and respondents are responsible for the cost of the member representing their interests.

Sec. 2339.10. The chairperson of the panel shall set a time and place for the arbitration hearing and send notice to the arbitrators and parties to the action at least twenty-eight days before the date set for the arbitration hearing.

Sec. 2339.11.  (A) At least seven days before the date of the arbitration hearing, the parties to the claim shall submit copies of the filings and responses made under sections 2339.03 and 2339.04 of the Revised Code to the chairperson of the arbitration panel, and five copies of a concise brief or summary setting forth that party's factual or legal position on the issues presented by the claim. Parties to the claim may submit additional documents pertaining to the issues to be arbitrated. In addition, one copy of each document and the brief or summary shall be served on each attorney of record in the action.

(B) Any party failing to submit the documents and brief or summary to the chairperson of the panel as required by this section shall be fined sixty dollars, to be paid at the time of the arbitration hearing and distributed equally among the arbitrators.

Sec. 2339.12.  (A) A party to a medical negligence claim has the right, but is not required, to attend an arbitration hearing. If scars, disfigurement, or other unusual conditions exist, these may be demonstrated to the arbitration panel by personal appearance, photographs, or videotape.

(B) The Ohio Rules of Evidence shall apply to arbitration hearings. Factual information having a bearing on damages or liability shall be supported by documentary evidence when possible. A stenographic record or tape recording and transcript of each arbitration hearing shall be maintained as part of the arbitration's official record.

(C) The panel's evaluation is not admissible in subsequent court proceedings, and panel members shall not testify or provide depositions in subsequent court proceedings. In a jury action, however, the court may inform the jury that the claim was arbitrated and an evaluation rendered and, as to each party to the action, whether the panel's evaluation favored the party.

(D) To the extent permitted by the Rules of Evidence, an admission made by a party or a party's representative to the arbitration panel, and witness testimony and documentary evidence given at the arbitration hearing, shall be admissible in any subsequent court proceeding.

Sec. 2339.13.  (A) Except as otherwise provided in division (B) of this section, an arbitration panel shall evaluate a claim within fourteen days after an arbitration hearing and shall serve each party with a copy of its evaluation. The evaluation shall include the panel's specific finding on the applicable standard of practice or care for the health care services rendered. The evaluation shall set forth the panel's awards and shall indicate if any award is not unanimous. All dissenting opinions of members shall accompany the evaluation.

(B) The evaluation shall state if the arbitration panel determines that a claim or defense is frivolous. If the claim proceeds to trial, the party who has been determined to have a frivolous claim or defense shall post a cash or surety bond, approved by the court, in the amount of fifty thousand dollars. If judgment is entered against the party who posted the bond, the bond shall be used to pay all reasonable costs incurred by the opposing parties as allowed by the Revised Code and rules of court, including reasonable attorney fees.

(C) The evaluation shall include a separate award as to each cross-claim, counterclaim, and third-party claim that has been filed. For this purpose, all cross-claims, counterclaims, and third-party claims filed by a single party against another party shall be treated as a single claim.

Sec. 2339.14.  (A) Each party to a claim shall file a written acceptance or rejection of the arbitration panel's evaluation within twenty-eight days after being served with the panel's evaluation. A party's failure to file written acceptance or rejection within twenty-eight days shall constitute the party's acceptance of the evaluation.

(B) A party's acceptance or rejection of the arbitration panel's evaluation shall not be disclosed until the expiration of the twenty-eight-day period, at which time the chairperson of the panel shall mail a notice to all parties to the action indicating each party's acceptance or rejection of the panel's evaluation.

(C) In arbitrations involving multiple parties, the following rules shall apply:

(1) All of the parties on either side of the claim have the option of jointly accepting all of the arbitration panel's awards or of accepting some awards and rejecting others. However, as to any particular opposing party, the party either shall accept or reject the awards in their entirety.

(2) A party that accepts all of the awards may indicate in the acceptance that the acceptance only is effective if all of the opposing parties accept the awards. If this limitation is not included in the acceptance, the accepting party shall be considered to have agreed to an entry of judgment as to that party and those of the opposing parties who have accepted all of the awards, with the action to continue between the accepting party and those opposing parties that have rejected any of the awards. If the limitation is included in the acceptance and some of the opposing parties reject the awards, the party including the limitation is considered to have rejected the awards even as to those individual opposing parties that have accepted all of the awards and the cost provisions of section 2339.16 of the Revised Code shall apply.

Sec. 2339.15.  (A) If all parties accept the arbitration panel's evaluation, the chairperson of the panel shall mail a copy of the panel's awards to all of the parties and shall add all fees, costs, and interest to the date of judgment to the awards.

(B)(1) In a case involving multiple parties, the chairperson of the panel shall mail copies of the awards to the parties that have accepted the portions of the evaluations that apply to them if not proscribed by division (C)(2) of section 2339.14 of the Revised Code. If all or part of the evaluation is rejected by opposing parties, the action shall proceed to trial on the unresolved matters, subject to the party filing a complaint with the court within sixty days after being served with the panel's evaluation.

(2) In a case involving a single claimant and respondent, the chairperson of the panel shall mail copies of those portions of the evaluation and awards accepted by the opposing parties. If all or part of the evaluation is rejected by the opposing parties, the action shall proceed to trial on the unresolved matters, subject to a party filing a complaint with the court within sixty days after being served with the panel's evaluation.

(C) The chairperson of the panel shall place a copy of the evaluation and the parties' acceptances and rejections in a sealed envelope for filing with the clerk of court. If a complaint is filed and the action proceeds to trial, the envelope shall not be opened and the parties shall not reveal the amount of the evaluation's awards until judgment has been rendered.

(D) At any time within one year after a party accepts an arbitration panel's award, the party shall apply to the court for an order confirming the award. Thereupon the court shall grant such an order and enter judgment thereon, unless the award is vacated, modified, or corrected as prescribed in sections 2711.10 and 2711.11 of the Revised Code. Written notice of the application shall be served upon the adverse parties and their attorneys five days before a hearing on the application.

Sec. 2339.16.  (A) If a party rejects all or any of the arbitration panel's evaluation and awards and the claim proceeds to trial upon the party's complaint, that party shall pay an opposing party's actual costs unless the verdict is at least ten per cent more favorable to the rejecting party than the evaluation. However, if an opposing party also rejects the evaluation and award, that party is entitled to costs only if the verdict is more favorable to that party than the evaluation.

(B) For purposes of this section, a verdict shall be adjusted by adding assessable costs and interest to the amount of the verdict from the date of filing of the complaint to the date of the evaluation's release.

(C) As used in this section, actual costs include those costs taxable in any civil action.

Sec. 2339.17.  Any arbitration agreement entered into by opposing parties, whether as to awards or other matters, is binding on all parties to the agreement.

Section 2. That existing section 2305.113 of the Revised Code is hereby repealed.

Section 3. Sections 2339.01, 2339.02, 2339.03, 2339.04, 2339.05, 2339.06, 2339.07, 2339.08, 2339.09, 2339.10, 2339.11, 2339.12, 2339.13, 2339.14, 2339.15, 2339.16, and 2339.17 of the Revised Code are repealed ten years after the effective date of this act.

Section 4. In connection with all actions based upon medical negligence claims that accrue during a period commencing on the effective date of this act and expiring nine years thereafter, the operation of sections 2711.21 to 2711.24 of the Revised Code is suspended. All actions based upon medical negligence claims accruing during this period shall be subject to the operation of Chapter 2339. of the Revised Code. Upon the expiration of such period of suspension, sections 2711.21 to 2711.24 of the Revised Code, in either the present form of such sections or as they are hereafter amended, again become fully operational as to all actions based upon medical negligence claims accruing after the period of suspension.