length of time and estimated costs to all par-
ties; 
‘‘(D) the medical liability environment; 
‘‘(E) health care quality; 
‘‘(F) patient safety in terms of detecting, 
analyzing, and reducing medical errors and ad-
verse events; and 
‘‘(G) patient and health care provider and 
organization satisfaction with the alternative 
under subsection (a) and with the medical li-
ability environment. 
‘‘(4) FUNDING.—The Secretary shall reserve 5 
percent of the amount appropriated in each fiscal 
year under subsection (j) to carry out this sub-
section. 
‘‘(h) OPTION TO PROVIDE FOR INITIAL PLANNING 
GRANTS.—Of the funds appropriated pursuant to sub-
section (j), the Secretary may use a portion not to exceed 
$500,000 per State to provide planning grants to such 
States for the development of demonstration project appli-
cations meeting the criteria described in subsection (c). 
In selecting States to receive such planning grants, the 
Secretary shall give preference to those States in which 
State law at the time of the application would not prohibit 
the adoption of an alternative to current tort litigation. 
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‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) HEALTH
CARE
SERVICES.—The term 
‘health care services’ means any services provided by 
a health care provider, or by any individual working 
under the supervision of a health care provider, that 
relate to— 
‘‘(A) the diagnosis, prevention, or treat-
ment of any human disease or impairment; or 
‘‘(B) the assessment of the health of 
human beings. 
‘‘(2) HEALTH CARE ORGANIZATION.—The term 
‘health care organization’ means any individual or 
entity which is obligated to provide, pay for, or ad-
minister health benefits under any health plan. 
‘‘(3) HEALTH
CARE
PROVIDER.—The term 
‘health care provider’ means any individual or enti-
ty— 
‘‘(A) licensed, registered, or certified under 
Federal or State laws or regulations to provide 
health care services; or 
‘‘(B) required to be so licensed, registered, 
or certified but that is exempted by other stat-
ute or regulation. 
‘‘(4) NET ECONOMIC LOSS.—The term ‘net eco-
nomic loss’ means— 
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‘‘(A) reasonable expenses incurred for 
products, services, and accommodations needed 
for health care, training, and other remedial 
treatment and care of an injured individual; 
‘‘(B) reasonable and appropriate expenses 
for rehabilitation treatment and occupational 
training; 
‘‘(C) 100 percent of the loss of income 
from work that an injured individual would 
have performed if not injured, reduced by any 
income from substitute work actually per-
formed; and 
‘‘(D) reasonable expenses incurred in ob-
taining ordinary and necessary services to re-
place services an injured individual would have 
performed for the benefit of the individual or 
the family of such individual if the individual 
had not been injured. 
‘‘(5) NON-ECONOMIC
DAMAGES.—The term 
‘non-economic damages’ means losses for physical 
and emotional pain, suffering, inconvenience, phys-
ical impairment, mental anguish, disfigurement, loss 
of enjoyment of life, loss of society and companion-
ship, loss of consortium (other than loss of domestic 
service), injury to reputation, and all other non-pe-
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