Ch. 149             1997 Session Laws of Kansas             873

An Act concerning health care providers; relating to peer review and risk management;
amending K.S.A. 65-4925 and K.S.A. 1996 Supp. 65-4915 and repealing the existing
sections.

Be it enacted by the Legislature of the State of Kansas:

Section 1. K.S.A. 1996 Supp. 65-4915 is hereby amended to read as
follows: 65-4915. (a) As used in this section:

(1) ``Health care provider'' means: (A) Those persons and entities
defined as a health care provider under K.S.A. 40-3401 and amendments
thereto; and (B) a dentist licensed by the Kansas dental board, a dental
hygienist licensed by the Kansas dental board, a professional nurse li-
censed by the board of nursing, a practical nurse licensed by the board
of nursing, a mental health technician licensed by the board of nursing,
a physical therapist assistant certified by the state board of healing arts,
an occupational therapist registered by the state board of healing arts, an
occupational therapy assistant registered by the state board of healing
arts, a respiratory therapist registered by the state board of healing arts,
a physician's assistant registered by the state board of healing arts and
attendants and ambulance services certified by the emergency medical
services board.

(2) ``Health care provider group'' means:

(A) A state or local association of health care providers or one or more
committees thereof;

(B) the board of governors created under K.S.A. 40-3403 and amend-
ments thereto;

(C) an organization of health care providers formed pursuant to state
or federal law and authorized to evaluate medical and health care services;

(D) a review committee operating pursuant to K.S.A. 65-2840b
through 65-2840d, and amendments thereto;

(E) an organized medical staff of a licensed medical care facility as
defined by K.S.A. 65-425 and amendments thereto, an organized medical
staff of a private psychiatric hospital licensed under K.S.A. 75-3307b and
amendments thereto or an organized medical staff of a state psychiatric
hospital or state institution for the mentally retarded, as follows: Larned
state hospital, Osawatomie state hospital, Rainbow mental health facility,
Topeka state hospital, Kansas neurological institute, Norton state hospital,
Parsons state hospital and training center and Winfield state hospital and
training center;

(F) a health care provider;

(G) a professional society of health care providers or one or more
committees thereof;

(H) a Kansas corporation whose stockholders or members are health

874             1997 Session Laws of Kansas             Ch. 149

care providers or an association of health care providers, which corpora-
tion evaluates medical and health care services; or

(I) an insurance company, health maintenance organization or ad-
ministrator of a health benefits plan which engages in any of the functions
defined as peer review under this section.

(3) ``Peer review'' means any of the following functions:

(A) Evaluate and improve the quality of health care services rendered
by health care providers;

(B) determine that health services rendered were professionally in-
dicated or were performed in compliance with the applicable standard of
care;

(C) determine that the cost of health care rendered was considered
reasonable by the providers of professional health services in this area;

(D) evaluate the qualifications, competence and performance of the
providers of health care or to act upon matters relating to the discipline
of any individual provider of health care;

(E) reduce morbidity or mortality;

(F) establish and enforce guidelines designed to keep within reason-
able bounds the cost of health care;

(G) conduct of research;

(H) determine if a hospital's facilities are being properly utilized;

(I) supervise, discipline, admit, determine privileges or control mem-
bers of a hospital's medical staff;

(J) review the professional qualifications or activities of health care
providers;

(K) evaluate the quantity, quality and timeliness of health care serv-
ices rendered to patients in the facility;

(L) evaluate, review or improve methods, procedures or treatments
being utilized by the medical care facility or by health care providers in
a facility rendering health care.

(4) ``Peer review officer or committee'' means:

(A) An individual employed, designated or appointed by, or a com-
mittee of or employed, designated or appointed by, a health care provider
group and authorized to perform peer review; or

(B) a health care provider monitoring the delivery of health care at
correctional institutions under the jurisdiction of the secretary of correc-
tions.

(b) Except as provided by K.S.A. 60-437 and amendments thereto
and by subsections (c) and (d), the reports, statements, memoranda, pro-
ceedings, findings and other records of submitted to or generated by peer
review committees or officers shall be privileged and shall not be subject
to discovery, subpoena or other means of legal compulsion for their re-
lease to any person or entity or be admissible in evidence in any judicial
or administrative proceeding. Information contained in such records shall
not be discoverable or admissible at trial in the form of testimony by an

Ch. 149             1997 Session Laws of Kansas             875

individual who participated in the peer review process. The peer review
officer or committee creating or initially receiving the record is the holder
of the privilege established by this section. This privilege may be claimed
by the legal entity creating the peer review committee or officer, or by
the commissioner of insurance for any records or proceedings of the
board of governors.

(c) Subsection (b) shall not apply to proceedings in which a health
care provider contests the revocation, denial, restriction or termination
of staff privileges or the license, registration, certification or other au-
thorization to practice of the health care provider. A licensing agency in
conducting a disciplinary proceeding in which admission of any peer re-
view committee report, record or testimony is proposed shall hold the
hearing in closed session when any such report, record or testimony is
disclosed. Unless otherwise provided by law, a licensing agency conduct-
ing a disciplinary proceeding may close only that portion of the hearing
in which disclosure of a report or record privileged under this section is
proposed. In closing a portion of a hearing as provided by this section,
the presiding officer may exclude any person from the hearing location
except the licensee, the licensee's attorney, the agency's attorney, the wit-
ness, the court reporter and appropriate staff support for either counsel.
The licensing agency shall make the portions of the agency record in which
such report or record is disclosed subject to a protective order prohibiting
further disclosure of such report or record. Such report or record shall
not be subject to discovery, subpoena or other means of legal compulsion
for their release to any person or entity. No person in attendance at a
closed portion of a disciplinary proceeding shall at a subsequent civil,
criminal or administrative hearing, be required to testify regarding the
existence or content of a report or record privileged under this section
which was disclosed in a closed portion of a hearing, nor shall such tes-
timony be admitted into evidence in any subsequent civil, criminal or
administrative hearing. A licensing agency conducting a disciplinary pro-
ceeding may review peer review committee records, testimony or reports
but must prove its findings with independently obtained testimony or
records which shall be presented as part of the disciplinary proceeding in
open meeting of the licensing agency. Offering such testimony or records
in an open public hearing shall not be deemed a waiver of the peer review
privilege relating to any peer review committee testimony, records or re-
port.

(d) Nothing in this section shall limit the authority, which may oth-
erwise be provided by law, of the commissioner of insurance, the state
board of healing arts or other health care provider licensing or disciplinary
boards of this state to require a peer review committee or officer to report
to it any disciplinary action or recommendation of such committee or
officer; to transfer to it records of such committee's or officer's proceed-
ings or actions to restrict or revoke the license, registration, certification

876             1997 Session Laws of Kansas             Ch. 149

or other authorization to practice of a health care provider; or to terminate
the liability of the fund for all claims against a specific health care provider
for damages for death or personal injury pursuant to subsection (i) of
K.S.A. 40-3403 and amendments thereto. Reports and records so fur-
nished shall not be subject to discovery, subpoena or other means of legal
compulsion for their release to any person or entity and shall not be
admissible in evidence in any judicial or administrative proceeding other
than a disciplinary proceeding by the state board of healing arts or other
health care provider licensing or disciplinary boards of this state.

(e) A peer review committee or officer may report to and discuss its
activities, information and findings to other peer review committees or
officers or to a board of directors or an administrative officer of a health
care provider without waiver of the privilege provided by subsection (b)
and the records of all such committees or officers relating to such report
shall be privileged as provided by subsection (b).

(f) Nothing in this section shall be construed to prevent an insured
from obtaining information pertaining to payment of benefits under a
contract with an insurance company, a health maintenance organization
or an administrator of a health benefits plan.

Sec. 2. K.S.A. 65-4925 is hereby amended to read as follows: 65-
4925. (a) The reports and records made pursuant to K.S.A. 65-4923 or
65-4924, and amendments thereto, shall be confidential and privileged,
including:

(1) Reports and records of executive or review committees of medical
care facilities or of a professional society or organization;

(2) reports and records of the chief of the medical staff, chief admin-
istrative officer or risk manager of a medical care facility;

(3) reports and records of any state licensing agency or impaired pro-
vider committee of a professional society or organization; and

(4) reports made pursuant to this act to or by a medical care facility
risk manager, any committee, the board of directors, administrative of-
ficer or any consultant.

Such reports and records shall not be subject to discovery, subpoena
or other means of legal compulsion for their release to any person or
entity and shall not be admissible in any civil or administrative action
other than a disciplinary proceeding by the appropriate state licensing
agency.

(b) No person in attendance at any meeting of an executive or review
committee of a medical care facility or of a professional society or organ-
ization while such committee is engaged in the duties imposed by K.S.A.
65-4923 shall be compelled to testify in any civil, criminal or administra-
tive action, other than a disciplinary proceeding by the appropriate li-
censing agency, as to any committee discussions or proceedings.

(c) No person in attendance at any meeting of an impaired provider

Ch. 149             1997 Session Laws of Kansas             877

committee shall be required to testify, nor shall the testimony of such
person be admitted into evidence, in any civil, criminal or administrative
action, other than a disciplinary proceeding by the appropriate state li-
censing agency, as to any committee discussions or proceedings.

(d) Any person or committee performing any duty pursuant to this
act shall be designated a peer review committee or officer pursuant to
K.S.A. 65-4915 and amendments thereto.

(e) A licensing agency in conducting a disciplinary proceeding in
which admission of any peer review committee report, record or testimony
is proposed shall hold the hearing in closed session when any such report,
record or testimony is disclosed. Unless otherwise provided by law, a
licensing agency conducting a disciplinary proceeding may close only that
portion of the hearing in which disclosure of a report or record privileged
under this section is proposed. In closing a portion of a hearing as pro-
vided by this section, the presiding officer may exclude any person from
the hearing location except the licensee, the licensee's attorney, the
agency's attorney, the witness, the court reporter and appropriate staff
support for either counsel. The licensing agency shall make the portions
of the agency record in which such report or record is disclosed subject
to a protective order prohibiting further disclosure of such report or rec-
ord. Such report or record shall not be subject to discovery, subpoena or
other means of legal compulsion for their release to any person or entity.
No person in attendance at a closed portion of a disciplinary proceeding
shall at a subsequent civil, criminal or administrative hearing, be required
to testify regarding the existence or content of a report or record privileged
under this section which was disclosed in a closed portion of a hearing,
nor shall such testimony be admitted into evidence in any subsequent civil,
criminal or administrative hearing. A licensing agency conducting a dis-
ciplinary proceeding may review peer review committee records, testi-
mony or reports but must prove its findings with independently obtained
testimony or records which shall be presented as part of the disciplinary
proceeding in open meeting of the licensing agency. Offering such testi-
mony or records in an open public hearing shall not be deemed a waiver
of the peer review privilege relating to any peer review committee testi-
mony, records or report.

Sec. 3. K.S.A. 65-4925 and K.S.A. 1996 Supp. 65-4915 are hereby
repealed.

Sec. 4. This act shall take effect and be in force from and after its
publication in the Kansas register.

Approved April 24, 1997.

Published in the Kansas Register: May 1, 1997.