I 

109TH CONGRESS 

1ST SESSION H. R. 3139

To amend the Public Health Service Act to provide for the public disclosure 

of charges for certain hospital and ambulatory surgical center services 

and drugs. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 30, 2005

Mr. LIPINSKI (for himself and Mr. INGLIS of South Carolina) introduced the 

following bill; which was referred to the Committee on Energy and Commerce 

A BILL

To amend the Public Health Service Act to provide for 

the public disclosure of charges for certain hospital and 

ambulatory surgical center services and drugs.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Hospital Price Report5 ing and Disclosure Act of 2005’’. 

6 SEC. 2. PUBLIC DISCLOSURE OF HOSPITAL DATA. 

7 Part B of title II of the Public Health Service Act 

8 (42 U.S.C. 238 et seq.) is amended by adding at the end 

9 the following new section: 
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1 ‘‘DATA REPORTING BY HOSPITALS AND AMBULATORY

2 SURGICAL CENTERS AND PUBLIC POSTING

3 ‘‘SEC. 249. (a) SEMIANNUAL REPORTING REQUIRE4 MENT.—Not later than 80 days after the end of each semi5 annual period beginning January 1 or July 1 (beginning 

6 more than one year after the date of the enactment of 

7 this section), a hospital and an ambulatory surgical center 

8 shall report to the Secretary the following data: 

9 ‘‘(1) In the case of a hospital—

10 ‘‘(A) the frequency with which the hospital 

11 performed each service selected under subpara12 graph (A) or (B) of subsection (c)(1) in an in13 patient or outpatient setting, respectively, dur14 ing such period; 

15 ‘‘(B) the frequency with which the hospital 

16 administered a drug selected under subpara17 graph (D) of such subsection in an inpatient 

18 setting during such period; and 

19 ‘‘(C) if the service was so performed or the 

20 drug was so administered during such period—

21 ‘‘(i) the total number of times the 

22 service was so performed or the drug was 

23 so administered during such period; and 
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1 ‘‘(ii) the average and the median 

2 charge by the hospital for such service or 

3 drug during such period; and 

4 ‘‘(2) In the case of an ambulatory surgical cen5 ter—

6 ‘‘(A) the frequency with which the center 

7 performed each service selected under subpara8 graph (C) of subsection (c)(1) during such pe9 riod; and 

10 ‘‘(B) if the service was so performed dur11 ing such period—

12 ‘‘(i) the total number of times the 

13 service was so performed during such pe14 riod; and 

15 ‘‘(ii) the average and the median 

16 charge by the center for such service dur17 ing such period. 

18 ‘‘(b) PUBLIC AVAILABILITY OF DATA.—

19 ‘‘(1) PUBLIC POSTING OF DATA.—The Sec20 retary shall promptly post, on the official public 

21 Internet site of the Department of Health and 

22 Human Services, the data reported under subsection 

23 (a). Such data shall be set forth in a manner that 

24 promotes charge comparison among hospitals and 

25 ambulatory surgical centers. 
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1 ‘‘(2) NOTICE OF AVAILABILITY.—A hospital 

2 and an ambulatory surgical center shall prominently 

3 post at each admission site of the hospital or center 

4 a notice of the availability of the data reported 

5 under subsection (a) on the official public Internet 

6 site under paragraph (1). 

7 ‘‘(c) SELECTION OF SERVICES AND DRUGS.—For 

8 purposes of this section: 

9 ‘‘(1) INITIAL SELECTION.—Based on national 

10 data, the Secretary shall select the following: 

11 ‘‘(A) The 25 most frequently performed 

12 services in a hospital inpatient setting. 

13 ‘‘(B) The 25 most frequently performed 

14 services in a hospital outpatient setting. 

15 ‘‘(C) The 25 most frequently performed 

16 services in an ambulatory surgical center set17 ting. 

18 ‘‘(D) The 50 most frequently administered 

19 drugs in a hospital inpatient setting. 

20 ‘‘(2) UPDATING SELECTION.—The Secretary 

21 shall periodically update the services and drugs se22 lected under paragraph (1). 

23 ‘‘(d) CIVIL MONEY PENALTY.—The Secretary may 

24 impose a civil money penalty of not more than $10,000 

25 for each knowing violation of subsection (a) or (b)(2) by 
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1 a hospital or an ambulatory surgical center. The provi2 sions of subsection (i)(2) of section 351A shall apply with 

3 respect to civil money penalties under this subsection in 

4 the same manner as such provisions apply to civil money 

5 penalties under subsection (i)(1) of such section. 

6 ‘‘(e) ADMINISTRATIVE PROVISIONS.—

7 ‘‘(1) IN GENERAL.—The Secretary shall pre8 scribe such regulations and issue such guidelines as 

9 may be required to carry out this section. 

10 ‘‘(2) CLASSIFICATION OF SERVICES.—The regu11 lations and guidelines under paragraph (1) shall in12 clude rules on the classification of different services 

13 and the assignment of items and procedures to those 

14 services. 

15 ‘‘(3) RULES.—The regulations and guidelines 

16 under paragraph (1) shall include rules regarding 

17 reporting of inpatient diagnostic related groups 

18 (DRGs), outpatient procedures and tests and classi19 fication of drugs. Classification of drugs may include 

20 unit, strength, and dosage information for reporting. 

21 ‘‘(4) COMPUTATION OF AVERAGE AND MEDIAN

22 CHARGES.—

23 ‘‘(A) IN GENERAL.—The regulations and 

24 guidelines under paragraph (1) shall include a 

25 methodology for computing an average and me-
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1 dian charge for a service or drug, in accordance 

2 with subparagraph (B). 

3 ‘‘(B) METHODOLOGY.—The methodology 

4 prescribed by the Secretary under subparagraph 

5 (A) shall ensure that an average and median 

6 charge for a service reflects the amount charged 

7 before any adjustment based on a negotiated 

8 rate with a third party. 

9 ‘‘(5) FORM OF REPORT AND NOTICE.—The reg10 ulations and guidelines under paragraph (1) shall 

11 specify the electronic form and manner by which a 

12 hospital or an ambulatory surgical center shall re13 port data under subsection (a) and the form for 

14 posting of notices under subsection (b)(2). 

15 ‘‘(f) RULES OF CONSTRUCTION.—

16 ‘‘(1) NON-PREEMPTION OF STATE LAWS.—

17 Nothing in this section shall be construed as pre18 empting or otherwise affecting any provision of 

19 State law relating to the disclosure of charges or 

20 other information for a hospital or an ambulatory 

21 surgical center. 

22 ‘‘(2) CHARGES.—Nothing in this section shall 

23 be construed to regulate or set hospital or ambula24 tory surgical center charges. 

25 ‘‘(g) DEFINITIONS.—In this section: 
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1 ‘‘(1) HOSPITAL AND AMBULATORY SURGICAL

2 CENTER.—The terms ‘hospital’ and ‘ambulatory sur3 gical center’ have the meaning given such terms by 

4 the Secretary. 

5 ‘‘(2) DRUG.—For purposes of this section, the 

6 term ‘drug’ includes a biological and a non-prescrip7 tion drug, such as an ointment.’’.

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