CALIFORNIA: Legislation that will prohibit cost and quality data gag clauses in hospital contracts passed the Assembly Health Committee (17-0) last week with strong bipartisan support. The measure now heads to the full Assembly for a floor vote. The California Hospital Association remains opposed, and the California Medical Association has raised concerns that the bill needs to include language to make clear the bill does not apply to them. As a result of this vote, the hospital association may step up its opposition.
Editor’s Note: If this bill passes, PPO hospital contracts will no longer be secret and confidential in California. Plan payers will finally be able to see what kind of discount arrangement has been made on their behalf.