II 

109TH CONGRESS 

1ST SESSION S. 1827 

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

of charges for certain hospital services and drugs. 

IN THE SENATE OF THE UNITED STATES 

OCTOBER 6, 2005 

Mr. DEMINT (for himself, Mr. DURBIN, and Mr. CORNYN) introduced the following bill; which was read twice and referred to the Committee on 

Health, Education, Labor, and Pensions 

A BILL 

To amend the Public Health Service Act to provide for 

the public disclosure of charges for certain hospital 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 PUBLIC POSTING

2 ‘‘SEC. 249. (a) SEMIANNUAL REPORTING REQUIRE3 MENT.—Not later than 80 days after the end of each semi4 annual period beginning January 1 or July 1 (beginning 

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

6 this section), a hospital shall report to the Secretary the 

7 following data: 

8 ‘‘(1) The frequency with which the hospital per9 formed each service selected under subparagraph (A) 

10 or (B) of subsection (c)(1) in an inpatient or out11 patient setting, respectively, during such period. 

12 ‘‘(2) The frequency with which the hospital ad13 ministered a drug selected under subparagraph (C) 

14 of such subsection in an inpatient setting during 

15 such period. 

16 ‘‘(3) If the service was so performed or the 

17 drug was so administered during such period, the 

18 average charge and the medium charge by the hos19 pital for such service or drug during such period. 

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

21 ‘‘(1) PUBLIC POSTING OF DATA.—The Sec22 retary shall promptly post, on the official public 

23 Internet site of the Department of Health and 

24 Human Services, the data reported under subsection 
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1 (a). Such data shall be set forth in a manner that 

2 promotes charge comparison among hospitals. 

3 ‘‘(2) NOTICE OF AVAILABILITY.—A hospital 

4 shall prominently post at each admission site of the 

5 hospital a notice of the availability of the data re6 ported under subsection (a) on the official public 

7 Internet site under paragraph (1). 

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

9 purposes of this section: 

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

11 data, the Secretary shall select the following: 

12 ‘‘(A) The 25 most frequently performed 

13 services in a hospital inpatient setting. 

14 ‘‘(B) The 25 most frequently performed 

15 services in a hospital outpatient setting. 

16 ‘‘(C) The 50 most frequently administered 

17 drugs in a hospital inpatient setting. 

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

19 shall periodically update the services and drugs se20 lected under paragraph (1). 

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

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

23 for each knowing violation of subsection (a) or (b)(2) by 

24 a hospital. The provisions of subsection (i)(2) of section 

25 351A shall apply with respect to civil money penalties 
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1 under this subsection in the same manner as such provi2 sions apply to civil money penalties under subsection (i)(1) 

3 of such section. 

4 ‘‘(e) ADMINISTRATIVE PROVISIONS.— 

5 ‘‘(1) IN GENERAL.—The Secretary shall pre6 scribe such regulations and issue such guidelines as 

7 may be required to carry out this section. 

8 ‘‘(2) CLASSIFICATION OF SERVICES.—The regu9 lations and guidelines under paragraph (1) shall in10 clude rules on the classification of different services 

11 and the assignment of items and procedures to those 

12 services (including inpatient diagnostic related 

13 groups (DRGs), outpatient procedures, and tests) 

14 and classification of drugs. For purposes of the pre15 ceding sentence, classification of drugs may include 

16 unit, strength, and dosage information. 

17 ‘‘(3) COMPUTATION OF AVERAGE AND MEDIAN

18 CHARGES.— 

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

20 guidelines under paragraph (1) shall include a 

21 methodology for computing an average charge 

22 and a median charge for a service or drug, in 

23 accordance with subparagraph (B). 

24 ‘‘(B) METHODOLOGY.—The methodology 

25 prescribed by the Secretary under subparagraph 
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1 (A) shall ensure that the average charge and 

2 the median charge for a service or drug reflect 

3 the amount charged before any adjustment 

4 based on a rate negotiated with a third party. 

5 ‘‘(4) FORM OF REPORT AND NOTICE.—The reg6 ulations and guidelines under paragraph (1) shall 

7 specify the electronic form and manner by which a 

8 hospital shall report data under subsection (a) and 

9 the form for posting of notices under subsection 

10 (b)(2). 

11 ‘‘(f) RULES OF CONSTRUCTION.— 

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

13 Nothing in this section shall be construed as pre14 empting or otherwise affecting any provision of 

15 State law relating to the disclosure of charges or 

16 other information for a hospital. 

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

18 be construed to regulate or set hospital charges. 

19 ‘‘(g) DEFINITIONS.—For purposes of this section: 

20 ‘‘(1) HOSPITAL.—The term ‘hospital’ has the 

21 meaning given such term by the Secretary. 

22 ‘‘(2) DRUG.—The term ‘drug’ includes a bio23 logical and a non-prescription drug, such as an oint24 ment.’’. 

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