SECTION 1. BAN ON DISCLOSURE OF MEDICAL QUALITY ASSURANCE INFORMATION.

    Subsection (a) of section 5705 of title 38, United States Code, is 
amended--
            (1) by inserting ``(1)'' after ``(a)''; and
            (2) by adding at the end the following:
    ``(2)(A) Except as provided in subsection (b), no part of any 
medical quality assurance record or document described in subsection 
(a)(1) may be subject to discovery or admitted into evidence in any 
judicial or administrative proceeding.
    ``(B) An individual who reviews or creates medical quality 
assurance records or documents for the Department or who participates 
in any proceeding that reviews or creates such records or documents may 
not be permitted or required to testify in any judicial or 
administrative proceeding with respect to such records or documents or 
with respect to any finding, recommendation, evaluation, opinion, or 
action taken by such person in connection with such records or 
documents except as provided in this section.''.

SEC. 2. DISCLOSURE AUTHORITY.

    (a) Clarification of Coverage.--Subsection (b)(1) of section 5705 
of title 38, United States Code, is amended by striking out ``or 
document'' in the matter above subparagraph (A) and inserting in lieu 
thereof ``, document, or testimony''.
    (b) Disclosure for Professional Use.--Such subsection is further 
amended by adding at the end the following:
            ``(E) In an administrative or judicial proceeding commenced 
        by a criminal or civil law enforcement agency or 
        instrumentality referred to in subparagraph (C), but only 
        concerning the subject of such proceeding.
            ``(F) To a governmental board or agency or to a 
        professional health care society or organization, if such 
        record or document is needed by the board, agency, society, or 
        organization to issue a professional license or credential to 
        or to monitor the compliance with professional standards of any 
        health care provider who is or was an employee of the 
        Department.
            ``(G) To a hospital, medical center, or other institution 
        that provides health care services, if such record or document 
        is needed by the institution to assess the professional 
        qualifications of any health care provider who is or was an 
        employee of the Department and who has applied for or been 
        granted authority or employment to provide health care services 
        in or on behalf of such institution.
            ``(H) To an administrative or judicial proceeding commenced 
        by a present or former Department health care provider 
        concerning the termination, suspension or limitation of the 
        clinical privileges of such health care provider, or concerning 
        any adverse action involving such health care provider, but 
        only to the extent that such records or documents relate to the 
        clinical conduct or performance of the individual who has 
        commenced the action.''.
    (c) Removal of Identities.--Subsection (b)(2) of such section is 
amended by striking out ``if disclosure'' and all that follows through 
``personal privacy'' and inserting in lieu thereof ``subparagraphs 
(1)(A) and (1)(B) of this subsection''.

SEC. 3. LIMITATION ON DISCLOSURE.

    Paragraph (3) of section 5705(b) of title 38, United States Code, 
is amended to read as follows:
    ``(3) A person or entity having possession of, or access to, 
information, records, or documents, or testimony relating thereto, that 
is subject to the provisions of this section may not disclose such 
information, records, or documents, or any testimony relating thereto, 
in any manner or for any purpose except for a purpose as provided in 
this subsection. No person or entity to whom a record or document has 
been disclosed under this subsection shall make further disclosure of 
such record or document except for a purpose provided in this 
subsection.''.

SEC. 4. ACCESS TO RECORDS.

    Subsection (b) of section 5705 of title 38, United States Code, is 
amended by adding at the end the following:
    ``(7) Medical quality assurance records and documents described in 
subsection (a) which are subject to section 552a of title 5 may not be 
disclosed in accordance with that section except to the extent that 
such disclosure is also authorized under this section.
    ``(8) Medical quality assurance records or documents described in 
subsection (a) which are also subject to section 552a of title 5--
            ``(A) shall not be subject to the access provisions of such 
        section 552a to the extent that such access would reveal the 
        identities of participants in the quality assurance process 
        which generated the records or documents; and
            ``(B) are not subject to the amendment provisions of such 
        section 552a.
    ``(9) Medical quality assurance records and documents described in 
subsection (a) may not be made available to any person under section 
552 of title 5.''.

SEC. 5. REGULATIONS.

    Subsection (d)(2) of section 5705 of title 38, United States Code, 
is amended by striking out ``specified in'' and inserting in lieu 
thereof ``accomplished in accordance with''.
Output: Prohibits Department of Veterans Affairs medical quality assurance records from being subject to discovery or admitted into evidence in any judicial or administrative proceeding.  Prohibits an individual who participates in the production of such records from being required to testify at such a proceeding. 
Allows testimony concerning such records (currently, only the records or documents themselves) to be disclosed to Federal agencies for certain limited purposes (licensing, accreditation).  Specifies additional uses for which such information may be disclosed. 
Includes information and testimony related to such records within certain disclosure limitation provisions. 
Prohibits the disclosure of such records by the Department as public information to the extent that such disclosure would reveal the identities of the participants in the quality assurance process which generated the records or documents.