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.
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 ‘‘Hospital Price Report-
ing and Disclosure Act of 2005’’. 
SEC. 2. PUBLIC DISCLOSURE OF HOSPITAL DATA. 
Part B of title II of the Public Health Service Act 
(42 U.S.C. 238 et seq.) is amended by adding at the end 
the following new section:
‘‘DATA REPORTING BY HOSPITALS AND AMBULATORY 
SURGICAL CENTERS AND PUBLIC POSTING 
‘‘SEC. 249. (a) SEMIANNUAL REPORTING REQUIRE-
MENT.—Not later than 80 days after the end of each semi-
annual period beginning January 1 or July 1 (beginning 
more than one year after the date of the enactment of 
this section), a hospital and an ambulatory surgical center 
shall report to the Secretary the following data: 
‘‘(1) In the case of a hospital—
‘‘(A) the frequency with which the hospital 
performed each service selected under subpara-
graph (A) or (B) of subsection (c)(1) in an in-
patient or outpatient setting, respectively, dur-
ing such period; 
‘‘(B) the frequency with which the hospital 
administered a drug selected under subpara-
graph (D) of such subsection in an inpatient 
setting during such period; and 
‘‘(C) if the service was so performed or the 
drug was so administered during such period—
‘‘(i) the total number of times the 
service was so performed or the drug was 
so administered during such period; and
‘‘(ii) the average and the median 
charge by the hospital for such service or 
drug during such period; and 
‘‘(2) In the case of an ambulatory surgical cen-
ter—
‘‘(A) the frequency with which the center 
performed each service selected under subpara-
graph (C) of subsection (c)(1) during such pe-
riod; and 
‘‘(B) if the service was so performed dur-
ing such period—
‘‘(i) the total number of times the 
service was so performed during such pe-
riod; and 
‘‘(ii) the average and the median 
charge by the center for such service dur-
ing such period. 
‘‘(b) PUBLIC AVAILABILITY OF DATA.—
‘‘(1) PUBLIC
POSTING
OF
DATA.—The Sec-
retary shall promptly post, on the official public 
Internet site of the Department of Health and 
Human Services, the data reported under subsection 
(a). Such data shall be set forth in a manner that 
promotes charge comparison among hospitals and 
ambulatory surgical centers.
‘‘(2) NOTICE
OF
AVAILABILITY.—A hospital 
and an ambulatory surgical center shall prominently 
post at each admission site of the hospital or center 
a notice of the availability of the data reported 
under subsection (a) on the official public Internet 
site under paragraph (1). 
‘‘(c) SELECTION OF SERVICES AND DRUGS.—For 
purposes of this section: 
‘‘(1) INITIAL SELECTION.—Based on national 
data, the Secretary shall select the following: 
‘‘(A) The 25 most frequently performed 
services in a hospital inpatient setting. 
‘‘(B) The 25 most frequently performed 
services in a hospital outpatient setting. 
‘‘(C) The 25 most frequently performed 
services in an ambulatory surgical center set-
ting. 
‘‘(D) The 50 most frequently administered 
drugs in a hospital inpatient setting. 
‘‘(2) UPDATING
SELECTION.—The Secretary 
shall periodically update the services and drugs se-
lected under paragraph (1). 
‘‘(d) CIVIL MONEY PENALTY.—The Secretary may 
impose a civil money penalty of not more than $10,000 
for each knowing violation of subsection (a) or (b)(2) by
a hospital or an ambulatory surgical center. The provi-
sions of subsection (i)(2) of section 351A shall apply with 
respect to civil money penalties under this subsection in 
the same manner as such provisions apply to civil money 
penalties under subsection (i)(1) of such section. 
‘‘(e) ADMINISTRATIVE PROVISIONS.—
‘‘(1) IN
GENERAL.—The Secretary shall pre-
scribe such regulations and issue such guidelines as 
may be required to carry out this section. 
‘‘(2) CLASSIFICATION OF SERVICES.—The regu-
lations and guidelines under paragraph (1) shall in-
clude rules on the classification of different services 
and the assignment of items and procedures to those 
services. 
‘‘(3) RULES.—The regulations and guidelines 
under paragraph (1) shall include rules regarding 
reporting of inpatient diagnostic related groups 
(DRGs), outpatient procedures and tests and classi-
fication of drugs. Classification of drugs may include 
unit, strength, and dosage information for reporting. 
‘‘(4) COMPUTATION OF AVERAGE AND MEDIAN 
CHARGES.—
‘‘(A) IN GENERAL.—The regulations and 
guidelines under paragraph (1) shall include a 
methodology for computing an average and me-
dian charge for a service or drug, in accordance 
with subparagraph (B). 
‘‘(B) METHODOLOGY.—The methodology 
prescribed by the Secretary under subparagraph 
(A) shall ensure that an average and median 
charge for a service reflects the amount charged 
before any adjustment based on a negotiated 
rate with a third party. 
‘‘(5) FORM OF REPORT AND NOTICE.—The reg-
ulations and guidelines under paragraph (1) shall 
specify the electronic form and manner by which a 
hospital or an ambulatory surgical center shall re-
port data under subsection (a) and the form for 
posting of notices under subsection (b)(2). 
‘‘(f) RULES OF CONSTRUCTION.—
‘‘(1) NON-PREEMPTION
OF
STATE
LAWS.—
Nothing in this section shall be construed as pre-
empting or otherwise affecting any provision of 
State law relating to the disclosure of charges or 
other information for a hospital or an ambulatory 
surgical center. 
‘‘(2) CHARGES.—Nothing in this section shall 
be construed to regulate or set hospital or ambula-
tory surgical center charges. 
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) HOSPITAL
AND
AMBULATORY
SURGICAL 
CENTER.—The terms ‘hospital’ and ‘ambulatory sur-
gical center’ have the meaning given such terms by 
the Secretary. 
‘‘(2) DRUG.—For purposes of this section, the 
term ‘drug’ includes a biological and a non-prescrip-
tion drug, such as an ointment.’’.
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