I 
108TH CONGRESS 
1ST SESSION H. R. 3035
To establish an informatics grant program for hospitals and skilled nursing 
facilities in order to encourage health care providers to make major 
information technology advances. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 9, 2003
Mr. HOUGHTON (for himself and Mr. POMEROY) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Energy and Commerce, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To establish an informatics grant program for hospitals and 
skilled nursing facilities in order to encourage health 
care providers to make major information technology ad-
vances.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Medication Errors Re-
duction Act of 2003’’.
SEC. 2. INFORMATICS SYSTEMS GRANT PROGRAM FOR 
HOSPITALS AND SKILLED NURSING FACILI-
TIES. 
(a) GRANTS.—
(1) IN GENERAL.—The Secretary of Health and 
Human Services (in this section referred to as the 
‘‘Secretary’’) shall establish a program to make 
grants to eligible entities that have submitted appli-
cations in accordance with subsection (b) for the 
purpose of assisting such entities in offsetting the 
costs related to purchasing, leasing, developing, and 
implementing clinical health care informatics sys-
tems that utilize open data standards and that are 
designed to improve patient safety and reduce ad-
verse events and health care complications resulting 
from medication errors. 
(2) DURATION.—The authority of the Secretary 
to make grants under this section shall terminate on 
September 30, 2013. 
(3) COSTS DEFINED.—For purposes of this sec-
tion, the term ‘‘costs’’ shall include total expendi-
tures incurred for—
(A) purchasing, leasing, and installing 
computer software and hardware, including 
handheld computer technologies;
(B) making improvements to existing com-
puter software and hardware; 
(C) purchasing or leasing communications 
capabilities necessary for clinical data access, 
storage, and exchange; and 
(D) providing education and training to el-
igible entity staff on computer patient safety in-
formation systems. 
(4) ELIGIBLE ENTITY DEFINED.—For purposes 
of this section, the term ‘‘eligible entity’’ means the 
following entities: 
(A) HOSPITAL.—A hospital (as defined in 
section 1861(e) of the Social Security Act (42 
U.S.C. 1395x(e))). 
(B) 
SKILLED
NURSING
FACILITY.—A 
skilled nursing facility (as defined in section 
1819(a) of such Act (42 U.S.C. 1395i–3(e))). 
(b) APPLICATION.—An eligible entity seeking a grant 
under this section shall submit an application to the Sec-
retary at such time, in such form and manner, and con-
taining such information as the Secretary specifies. 
(c) SPECIAL CONSIDERATIONS
AND RURAL HOS-
PITAL RESERVE.—
(1) SPECIAL
CONSIDERATION
FOR
ELIGIBLE 
ENTITIES THAT SERVE A LARGE NUMBER OF MEDI-
CARE, MEDICAID, AND
SCHIP
ELIGIBLE
INDIVID-
UALS.—In awarding grants under this section, the 
Secretary shall give special consideration to eligible 
entities in which individuals that are eligible for ben-
efits under the medicare program under title XVIII 
of the Social Security Act, the medicaid program 
under title XIX of such Act, or under the State chil-
dren’s health insurance program under title XXI of 
such Act make up a high percentage of the total pa-
tient population of the entity. 
(2) RESERVE 20 PERCENT OF GRANT FUNDS 
FOR RURAL HOSPITALS.—
(A) IN
GENERAL.—Subject to subpara-
graph (C), the Secretary shall ensure that at 
least 20 percent of the funds available for mak-
ing grants under this section are used for mak-
ing grants to eligible entities that are rural hos-
pitals. 
(B) RURAL HOSPITAL DEFINED.—For pur-
poses of subparagraph (A), the term ‘‘rural hos-
pital’’ means a hospital that—
(i) is located in a rural area (as such 
term is defined for purposes of section 
1886(d) of the Social Security Act (42 
U.S.C. 1395ww(d)));