AB 779

Under current law, the federal Health Information Technology for Economic

and Clinical Health Act (HITECH Act) regulates the exchange of health information

electronically. The HITECH Act allows the secretary of the U.S. Department of

Health and Human Services to award grants to promote the exchange of health

information electronically. A state may receive that grant itself or may designate a

nonprofit corporation that meets certain criteria to apply for and receive the federal

grants under the HITECH Act.

This bill allows the secretary of the Department of Health Services (DHS) to

designate a nonprofit corporation as the entity to apply for and receive federal

funding under the HITECH Act if the corporation meets all of the following criteria:

1. A purpose of the corporation, as written in its articles of incorporation or

bylaws, is to use information technology to improve health care quality and efficiency

through the authorized and secure electronic exchange and use of health

information.

2. Annually, the corporation reports to the secretary on statewide health

information exchange and how exchange efforts are enabling meaningful use of

certified electronic health record technology, as defined in federal law.

3. The corporation complies with the requirements to be a qualified

state-designated entity and to receive a grant under the HITECH Act.

4. The corporation's governing structure and bylaws allow it to consult and

consider recommendations from outside entities, as specified under the HITECH

Act.

5. The board of directors of the corporation includes as members the state

health officer, the state Medical Assistance program director, and one person whom

the governor selects. The board's members also include, with the goal of balancing

public and private health sector interests, at least one individual representing each

of the following categories: health care providers, health insurers or health plans,

employers who purchase or self-insure employee health care, health care consumers

or consumer advocates, and higher education.

6. The corporation agrees to fulfill purposes related to development and

maintenance of electronic health information exchange.

DHS may make payments to a corporation to support health information

exchange if the secretary of DHS determines that the corporation meets the same

conditions as a corporation that is designated as the entity to apply for and receive

federal funding under the HITECH Act.

The bill allows the secretary of DHS to organize and maintain a corporation for

purposes related to the development and maintenance of electronic health

information exchange. If the secretary organizes the corporation, the secretary must

appoint as initial members the same categories of individuals as are required for a

corporation to be designated to apply for and receive funding under the HITECH Act.