To amend the Public Health Service Act to authorize grants to hospitals for measurement-based strategies to improve the quality and efficiency of health care.

April 2, 2004

Mr. KIND (for himself and Mr. UPTON) introduced the following bill; which was referred to the Committee on Energy and Commerce

To amend the Public Health Service Act to authorize grants to hospitals for measurement-based strategies to improve the quality and efficiency of health care.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Improving Efficiency and Quality in Hospitals Act of 2004'.

SEC. 2. FINDINGS.

The Congress finds as follows:

(1) The goals of the Institute of Medicine, as expressed in its report entitled `Crossing the Quality Chasm: A New Health System for the 21st Century', are to increase quality and efficiency in hospitals and health care systems.

(2) Approaches such as Six Sigma, Root Cause Analysis, and Failure Mode and Effect Analysis have succeeded in reducing errors, cutting costs, and improving services.

SEC. 3. DEMONSTRATION PROJECT FOR IMPROVING QUALITY AND EFFICIENCY AT HOSPITALS.

Part A of title IX of the Public Health Service Act (42 U.S.C. 299 et seq.) is amended by adding at the end the following:

`SEC. 904. DEMONSTRATION PROJECT FOR IMPROVING QUALITY AND EFFICIENCY AT HOSPITALS.

`(a) Grants- The Secretary, acting through the Director, may make grants to hospitals for developing and implementing measurement-based strategies to improve the quality and efficiency of health care.

`(b) Use of Funds- The Secretary may not make a grant to a hospital under this section unless the hospital agrees to use the grant, with respect to health care at the hospital, to improve the following:

`(1) Safety.

`(2) Injury avoidance.

`(3) Effectiveness of services, based on scientific knowledge and focusing on patients.

`(4) Timeliness.

`(5) Efficiency.

`(6) Equitable distribution of services.

`(c) Distribution- The Secretary shall make grants under this section to urban hospitals, non-urban hospitals, teaching hospitals, and hospitals with fewer than 50 acute care beds.

`(d) Report- Not later than 3 years after the date of the enactment of this section, the Secretary shall conduct an assessment of the results of grants under this section and submit to the Congress a report on the findings and conclusions of the assessment.

`(e) Authorization of Appropriations- There are authorized to be appropriated to carry out this section such sums as may be necessary for the period of fiscal years 2005 through 2007.'.

END