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First Substitute H.B. 292

Representative Mark W. Walker proposes the following substitute bill:


             1     
REGULATION OF DIRECT PATHOLOGY

             2     
BILLING

             3     
2007 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Chief Sponsor: Mark W. Walker

             6     
Senate Sponsor: Sheldon L. Killpack

             7     
             8      LONG TITLE
             9      General Description:
             10          This bill amends the unlawful and unprofessional conduct provisions of the Division of
             11      Occupational and Professional Licensing.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms, including:
             15              .    "health care provider"; and
             16              .    "anatomic pathology services"; and
             17          .    prohibits a health care provider from marking up a bill or making a profit on certain
             18      anatomic pathology services.
             19      Monies Appropriated in this Bill:
             20          None
             21      Other Special Clauses:
             22          None
             23      Utah Code Sections Affected:
             24      AMENDS:
             25          58-1-501, as last amended by Chapter 280, Laws of Utah 2004


             26      ENACTS:
             27          58-1-501.5, Utah Code Annotated 1953
             28     
             29      Be it enacted by the Legislature of the state of Utah:
             30          Section 1. Section 58-1-501 is amended to read:
             31           58-1-501. Unlawful and unprofessional conduct.
             32          (1) "Unlawful conduct" means conduct, by any person, that is defined as unlawful
             33      under this title and includes:
             34          (a) practicing or engaging in, representing oneself to be practicing or engaging in, or
             35      attempting to practice or engage in any occupation or profession requiring licensure under this
             36      title if the person is:
             37          (i) not licensed to do so or not exempted from licensure under this title; or
             38          (ii) restricted from doing so by a suspended, revoked, restricted, temporary,
             39      probationary, or inactive license;
             40          (b) impersonating another licensee or practicing an occupation or profession under a
             41      false or assumed name, except as permitted by law;
             42          (c) knowingly employing any other person to practice or engage in or attempt to
             43      practice or engage in any occupation or profession licensed under this title if the employee is
             44      not licensed to do so under this title;
             45          (d) knowingly permitting the person's authority to practice or engage in any occupation
             46      or profession licensed under this title to be used by another, except as permitted by law;
             47          (e) obtaining a passing score on a licensure examination, applying for or obtaining a
             48      license, or otherwise dealing with the division or a licensing board through the use of fraud,
             49      forgery, or intentional deception, misrepresentation, misstatement, or omission; or
             50          (f) (i) unless Subsection (2)(m) or (4) applies, issuing, or aiding and abetting in the
             51      issuance of, an order or prescription for a drug or device to a person located in this state:
             52          (A) without prescriptive authority conferred by a license issued under this title, or by
             53      an exemption to licensure under this title;
             54          (B) with prescriptive authority conferred by an exception issued under this title or a
             55      multistate practice privilege recognized under this title, if the prescription was issued:
             56          (I) without first obtaining information, in the usual course of professional practice, that


             57      is sufficient to establish a diagnosis, to identify underlying conditions, and to identify
             58      contraindications to the proposed treatment; or
             59          (II) based on a questionnaire completed by the patient on the internet, or toll-free
             60      telephone number, when there exists no other bona fide patient-practitioner relationship; or
             61          (C) in violation of Subsection (2)(m), when the licensed person who issued, or aided
             62      and abetted another in the issuance of the prescription has violated Subsection (2)(m) on more
             63      than 100 prescriptions within a 30 day period of time; and
             64          (ii) Subsection (1)(f) does not apply to treatment rendered in an emergency, on-call or
             65      cross coverage situation, provided that the person who issues the prescription has prescriptive
             66      authority conferred by a license under this title, or is exempt from licensure under this title.
             67          (2) "Unprofessional conduct" means conduct, by a licensee or applicant, that is defined
             68      as unprofessional conduct under this title or under any rule adopted under this title and
             69      includes:
             70          (a) violating, or aiding or abetting any other person to violate, any statute, rule, or order
             71      regulating an occupation or profession under this title;
             72          (b) violating, or aiding or abetting any other person to violate, any generally accepted
             73      professional or ethical standard applicable to an occupation or profession regulated under this
             74      title;
             75          (c) engaging in conduct that results in conviction, a plea of nolo contendere, or a plea
             76      of guilty or nolo contendere which is held in abeyance pending the successful completion of
             77      probation with respect to a crime of moral turpitude or any other crime that, when considered
             78      with the functions and duties of the occupation or profession for which the license was issued
             79      or is to be issued, bears a reasonable relationship to the licensee's or applicant's ability to safely
             80      or competently practice the occupation or profession;
             81          (d) engaging in conduct that results in disciplinary action, including reprimand,
             82      censure, diversion, probation, suspension, or revocation, by any other licensing or regulatory
             83      authority having jurisdiction over the licensee or applicant in the same occupation or profession
             84      if the conduct would, in this state, constitute grounds for denial of licensure or disciplinary
             85      proceedings under Section 58-1-401 ;
             86          (e) engaging in conduct, including the use of intoxicants, drugs, narcotics, or similar
             87      chemicals, to the extent that the conduct does, or might reasonably be considered to, impair the


             88      ability of the licensee or applicant to safely engage in the occupation or profession;
             89          (f) practicing or attempting to practice an occupation or profession regulated under this
             90      title despite being physically or mentally unfit to do so;
             91          (g) practicing or attempting to practice an occupation or profession regulated under this
             92      title through gross incompetence, gross negligence, or a pattern of incompetency or negligence;
             93          (h) practicing or attempting to practice an occupation or profession requiring licensure
             94      under this title by any form of action or communication which is false, misleading, deceptive,
             95      or fraudulent;
             96          (i) practicing or attempting to practice an occupation or profession regulated under this
             97      title beyond the scope of the licensee's competency, abilities, or education;
             98          (j) practicing or attempting to practice an occupation or profession regulated under this
             99      title beyond the scope of the licensee's license;
             100          (k) verbally, physically, mentally, or sexually abusing or exploiting any person through
             101      conduct connected with the licensee's practice under this title or otherwise facilitated by the
             102      licensee's license;
             103          (l) acting as a supervisor without meeting the qualification requirements for that
             104      position that are defined by statute or rule; [or]
             105          (m) unless Subsection (4) applies, issuing, or aiding and abetting in the issuance of, an
             106      order or prescription for a drug or device:
             107          (i) without first obtaining information in the usual course of professional practice, that
             108      is sufficient to establish a diagnosis, to identify conditions, and to identify contraindications to
             109      the proposed treatment; or
             110          (ii) based on a questionnaire completed by the patient on the internet, or toll free
             111      telephone number when there exists no other bona fide patient-practitioner relationship or bona
             112      fide referral by a practitioner involved in an existing patient-practitioner relationship[.]; or
             113          (n) violating a provision of Section 58-1-501.5 .
             114          (3) [Subsections] Subsection (2)(m)[(i) and (ii) do] does not apply to treatment
             115      rendered in an emergency, on-call, or cross coverage situation.
             116          (4) Notwithstanding Subsections (1)(f) and (2)(m), the division may permit a person
             117      licensed to prescribe under this title to prescribe a legend drug to a person located in this state
             118      if the division in collaboration with the appropriate professional board has permitted the


             119      specific prescriptive practice of the legend drug by rule.
             120          Section 2. Section 58-1-501.5 is enacted to read:
             121          58-1-501.5. Anatomic pathology services -- Billing violations.
             122          (1) As used in this section, the following definitions apply:
             123          (a) (i) "Anatomic pathology services" including "technical or professional component
             124      of anatomic pathology services" means:
             125          (A) histopathology or surgical pathology, meaning the gross examination of, histologic
             126      processing of, or microscopic examination of human organ tissue performed by a physician or
             127      under the supervision of a physician;
             128          (B) cytopathology, meaning the examination of human cells, from fluids, aspirates,
             129      washings, brushings, or smears, including the pap test examination performed by a physician or
             130      under the supervision of a physician;
             131          (C) hematology, meaning the microscopic evaluation of human bone marrow aspirates
             132      and biopsies performed by a physician or under the supervision of a physician and peripheral
             133      human blood smears when the attending or treating physician or other practitioner of the
             134      healing arts or a technologist requests that a blood smear be reviewed by a pathologist;
             135          (D) subcellular pathology and molecular pathology; and
             136          (E) blood bank services performed by a pathologist.
             137          (ii) "Anatomic pathology services" including "technical or professional component of
             138      anatomic pathology services" does not include the initial collection or packaging of a sample
             139      for transport.
             140          (b) "Clinical laboratory" or "laboratory" means a facility for the biological,
             141      microbiological, serological, chemical, immunohematological, hematological, biophysical,
             142      cytological, pathological, or other examination of materials derived from the human body for
             143      the purpose of providing information for the diagnosis, prevention, or treatment of any disease
             144      or impairment of human beings or the assessment of the health of human beings.
             145          (c) "Health care facility" has the meaning provided in Section 26-21-2 .
             146          (d) "Health care provider" includes:
             147          (i) an advanced practice registered nurse licensed under Chapter 31b, Nurse Practice
             148      Act;
             149          (ii) a chiropractor licensed under Chapter 73, Chiropractic Physician Practice Act;


             150          (iii) a dentist licensed under Chapter 69, Dentist and Dental Hygienist Practice Act;
             151          (iv) a nurse midwife licensed under Chapter 44a, Nurse Midwife Practice Act;
             152          (v) an optometrist licensed under Chapter 16a, Utah Optometry Practice Act;
             153          (vi) an osteopathic physician licensed under Chapter 68, Utah Osteopathic Medical
             154      Practice Act;
             155          (vii) a podiatrist licensed under Chapter 5a, Podiatric Physician Licensing Act;
             156          (viii) a physician licensed under Chapter 67, Utah Medical Practice Act; and
             157          (ix) a physician's assistant licensed under Chapter 70a, Physician Assistant Act.
             158          (e) "Insurer" includes:
             159          (i) any entity offering accident and health insurance as defined in Section 31A-1-301 ;
             160          (ii) workers' compensation benefits;
             161          (iii) a health maintenance organization; or
             162          (iv) any self-insurance, as defined in Section 31A-1-301 , that offers health care
             163      insurance or benefits.
             164          (2) (a) A health care provider who orders anatomic pathology services for a patient
             165      from an independent physician or laboratory may not directly or indirectly markup, charge a
             166      commission, or make a profit on the anatomic pathology service provided by the independent
             167      physician or laboratory.
             168          (b) Nothing in Subsection (2)(a):
             169          (i) restricts the ability of a health care provider, who has not performed or supervised
             170      either the technical or professional component of the anatomic pathology service, to obtain
             171      payment for services related solely to the collection and packaging of a sample and
             172      administrative billing costs; or
             173          (ii) restricts the ability of the lab function in the Department of Health to bill for
             174      services.
             175          (3) A health care provider when billing a patient directly for anatomic pathology
             176      services provided by an independent physician or laboratory shall furnish an itemized bill
             177      which conforms with the billing practices of the American Medical Association that
             178      conspicuously discloses the charge for each anatomic pathology service, physician or
             179      laboratory name, and address for each anatomic pathology service rendered to the patient by the
             180      physician or laboratory that performed the anatomic pathology service.


             181          (4) The disclosure to be made under Subsection (3) shall not be required when the
             182      anatomic pathology service is being ordered by a hospital, a laboratory performing either the
             183      professional or technical component of the service, or a physician performing either the
             184      professional or technical component of the service, a public health clinic, or a state or federal
             185      agency.
             186          (5) Failure to comply with the requirements of this section shall be considered to be
             187      unprofessional conduct.


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