An Act To Establish the Patient Compensation System Act
Maine Legislature, Session 127, LD 1311
Committee: Insurance and Financial Services
Sponsors: SANDERSON
Amends: 5 MRSA §12004-G, 24 MRSA §2994

Legislative Document 
No. 1311 
H.P. 889 
House of Representatives, April 9, 2015 
An Act To Establish the Patient Compensation System Act 
Reference to the Committee on Insurance and Financial Services suggested and ordered 
printed. 
ROBERT B. HUNT 
Clerk 
Presented by Representative SANDERSON of Chelsea. 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1.  5 MRSA §12004-G, sub-§21-C is enacted to read: 
21-C.   
Sec. 2.  24 MRSA c. 21, sub-c. 11 is enacted to read: 
SUBCHAPTER 11 
PATIENT COMPENSATION SYSTEM ACT 
§2991.  Short title 
This subchapter may be known and cited as "the Patient Compensation System Act." 
§2992.  Definitions 
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings. 
1.  Applicant.  "Applicant" means a person who files an application. 
2.  Application.  "Application" means a request for investigation by the system of an 
alleged occurrence of a medical injury. 
3.  Board.  "Board" means the Patient Compensation Board established in section 
2994. 
4.  Collateral source.  "Collateral source" means any payment made to an applicant 
or on the applicant's behalf by or pursuant to: 
A.  The federal Social Security Act; any federal, state or local income disability act; 
or any other public program providing payment for medical expenses, disability 
payments or other similar benefits; 
B.  Any health, sickness or income disability insurance; any automobile accident 
insurance that provides health benefits or income disability coverage; or any other 
similar insurance benefits, except life insurance benefits, available to the applicant, 
whether purchased by the applicant or provided by others; 
C.  Any contract or agreement of any group, organization, partnership or corporation 
to provide, pay for or reimburse the costs of hospital, medical, dental or other health 
care services; or 
D.  Any contractual or voluntary wage continuation plan provided by employers or 
any other program intended to provide wages during a period of disability. 
Insurance 
Patient 
Compensation 
Board 
Legislative Per 
Diem and Expenses 
Only 
MRSA §2994 
5.  Compensation Committee. "Compensation Committee" means the committee 
created pursuant to section 2995. 
6.  Compensation schedule.  "Compensation schedule" means a schedule of 
damages for medical injuries. 
7.  Department.  "Department" means the Department of Professional and Financial 
Regulation. 
8.  Independent medical review panel.  "Independent medical review panel" or 
"panel" means a panel convened under section 2996. 
9.  Medical injury.  "Medical injury" means a personal injury or wrongful death due 
to medical treatment, including a missed diagnosis, that reasonably could have been 
avoided in care provided by: 
A.  An individual participating provider under the supervision of an experienced 
specialist provider practicing in the same field of care under the same or similar 
circumstances or, for a general practitioner provider, under the supervision of an 
experienced general practitioner provider practicing under the same or similar 
circumstances; or 
B.  A participating provider in a system of care, if such care is rendered within an 
optimal system of care under the same or similar circumstances. 
"Medical injury" includes consideration of an alternate course of treatment only if the 
personal injury or death could have been avoided through a different but equally effective 
manner of treatment for the underlying condition.  "Medical injury" includes 
consideration only of information that would have been known to an experienced 
specialist or readily available to an optimal system of care at the time of the medical 
treatment. 
"Medical injury" does not include a personal injury or wrongful death if the medical 
treatment conformed with national practice standards for the care and treatment of 
patients as determined by the independent medical review panel. 
10.  Medical Review Committee.  "Medical Review Committee" means the 
committee created pursuant to section 2995. 
11.  Office of Compensation.  "Office of Compensation" means the office 
established in section 2994, subsection 6, paragraph B. 
12.  Office of Medical Review.  "Office of Medical Review" means the office 
established in section 2994, subsection 6, paragraph A. 
13.  Office of Quality Improvement.  "Office of Quality Improvement" means the 
office established in section 2994, subsection 6, paragraph C. 
14.  Participating provider.  "Participating provider" means a provider that, at the 
time of a medical injury, has paid the contribution required for participation in the system 
for the year in which the medical injury occurred. 
15.  Provider.  "Provider" means a physician, hospital or person that is licensed or 
otherwise authorized in this State to provide health care services. 
16.  System.  "System" means the Patient Compensation System established in 
section 2993. 
§2993.  Patient Compensation System 
The Patient Compensation System is established to provide a method for patients to 
be compensated for medical injuries.  The system is administered by the department. 
§2994.  Patient Compensation Board 
The Patient Compensation Board is established to govern the system. 
1.  Membership.  The board is composed of 11 members who represent the medical, 
legal, patient and business communities from diverse geographic areas throughout the 
State.  Members of the board are appointed by the Governor as follows: 
A.  One member who is an allopathic or osteopathic physician who actively practices 
in this State; 
B.  One member who is an executive in the business community who works in this 
State; 
C.  One member who is a hospital administrator who works in this State; 
D.  One member who is a certified public accountant who actively practices in this 
State; 
E.  One member who is licensed to practice law in this State who actively practices in 
this State; 
F.  Three members selected from a list of persons recommended by the President of 
the Senate, one of whom is an allopathic or osteopathic physician who actively 
practices in this State and one of whom is a patient advocate who resides in this State; 
and 
G.  Three members selected from a list of persons recommended by the Speaker of 
the House of Representatives, one of whom is an allopathic or osteopathic physician 
who actively practices in this State and one of whom is a patient advocate who 
resides in this State. 
The board shall annually elect from its membership one member to serve as chair of the 
board and one member to serve as vice-chair. 
2.  Terms.  A member of the board is appointed for a 4-year term.  If a vacancy 
occurs on the board before the expiration of a term, the Governor shall appoint a 
successor to serve the remainder of the term. 
3.  Meetings.  The board shall meet at least quarterly upon the call of the chair.  A 
majority of the board members constitutes a quorum.  Meetings may be held by 
teleconference, Internet-based conference or other electronic means. 
4.  Compensation.  Members of the board serve without compensation but are 
entitled to the legislative per diem and travel expenses under Title 3, section 2 for 
required attendance at board meetings. 
5.  Powers and duties.  The board has the following powers and duties: 
A.  Ensuring the operation of the system in accordance with applicable federal and 
state laws, rules and regulations; 
B.  Entering into contracts as necessary to administer this subchapter; 
C.  Employing an executive director and other staff as necessary to perform the 
functions of the system, except that the Governor shall appoint the initial executive 
director; 
D.  Approving the hiring of a chief compensation officer and chief medical officer, as 
recommended by the executive director; 
E.  Approving a compensation schedule, as recommended by the Compensation 
Committee pursuant to section 2995, subsection 7, paragraph B; 
F.  Approving independent medical review panelists as recommended by the Medical 
Review Committee pursuant to section 2995, subsection 7, paragraph A; 
G.  Approving an annual budget; and 
H.  Annually approving participating provider fees under section 2999-C, subsection 
1. 
6.  Offices.  The following offices are established within the system. 
A.  The Office of Medical Review is established and shall evaluate and, as necessary, 
investigate all applications in accordance with this subchapter.  For the purpose of an 
investigation of an application, the office has the power to administer oaths, take 
depositions, issue subpoenas, compel the attendance of witnesses and the production 
of papers, documents and other evidence and obtain patient records pursuant to the 
applicant's release of protected health information.  The office staff must include 
individuals representing multidisciplinary clinical expertise to facilitate the review of 
applications. 
B.  The Office of Compensation is established and shall allocate compensation for 
each application in accordance with the compensation schedule as approved pursuant 
to subsection 5, paragraph E. 
C.  The Office of Quality Improvement is established and shall regularly review 
application data to conduct root cause analyses and develop and disseminate best 
practices based on the reviews.  The office shall capture and record safety-related 
data obtained during an investigation conducted by the Office of Medical Review, 
including the cause of, the factors contributing to and any interventions that may have 
prevented the medical injury. 
7.  Powers and duties of staff.  The executive director shall oversee the operation of 
the system in accordance with this subchapter.  The following staff report directly to and 
serve at the pleasure of the executive director. 
A.  The advocacy director shall ensure that each applicant is provided high-quality 
individual assistance throughout the application process, from initial filing to 
disposition of the application.  The advocacy director shall assist each applicant in 
determining whether to retain an attorney, including an explanation of possible fee 
arrangements and the advantages and disadvantages of retaining an attorney.  If an 
applicant seeks to file an application without an attorney, the advocacy director shall 
assist the applicant in filing the application.  The advocacy director shall regularly 
provide status reports to an applicant regarding an application. 
B.  The chief compensation officer shall manage the Office of Compensation. The 
chief compensation officer shall recommend to the Compensation Committee a 
compensation schedule for each type of medical injury.  The chief compensation 
officer may not be a licensed physician or an attorney. 
C.  The chief financial officer is responsible for overseeing the financial operations of 
the system, including the development of an annual budget. 
D.  The chief legal officer shall represent the system in all contested applications, 
oversee the operation of the system to ensure compliance with established procedures 
and ensure adherence to all applicable federal and state laws, rules and regulations. 
E.  The chief medical officer must be a physician licensed under Title 32, chapter 36 
or 48 and shall manage the Office of Medical Review.  The chief medical officer 
shall prepare for the Medical Review Committee a list of qualified panelists from 
multiple disciplines for independent medical review panels.  The chief medical 
officer shall convene independent medical review panels as necessary to review 
applications. 
F.  The chief quality officer shall manage the Office of Quality Improvement. 
§2995.  Committees 
The board shall create a Medical Review Committee and a Compensation 
Committee.  The board may create additional committees as necessary to assist in the 
performance of its duties and responsibilities.  Each committee is composed of 3 board 
members chosen by a majority vote of the board. 
1.  Medical Review Committee.  The Medical Review Committee is composed of 2 
physicians who are licensed in this State and a board member who is not an attorney and 
who resides in this State.  The board shall designate a physician committee member as 
chair of the committee. 
2.  Compensation Committee.  The Compensation Committee is composed of a 
certified public accountant who practices in this State and 2 board members who are not 
physicians or attorneys and who reside in this State.  The certified public accountant shall 
serve as chair of the committee. 
3.  Terms of appointment.  Members of each committee serve 2-year terms 
concurrent with their respective terms as board members.  If a vacancy occurs on a 
committee, the board shall appoint a successor to serve the remainder of the term.  A 
committee member who is removed or resigns from the board must be removed from the 
committee. 
4.  Vice-chair.  The board annually shall designate a vice-chair of each committee. 
5.  Meetings.  Each committee shall meet at least quarterly or at the specific direction 
of the board.  Meetings may be held by teleconference, Internet-based conference or other 
electronic means. 
6.  Compensation.  Members of the committees serve without compensation but are 
entitled to the legislative per diem and travel expenses under Title 3, section 2 for 
required attendance at committee meetings. 
7.  Committee powers and duties.  The committees have the following powers and 
duties. 
A.  The Medical Review Committee, in consultation with the chief medical officer 
pursuant to section 2994, subsection 7, paragraph E, shall prepare for the board a 
comprehensive list of qualified panelists from multiple disciplines to serve on 
independent medical review panels as needed. 
B.  The Compensation Committee, in consultation with the chief compensation 
officer pursuant to section 2994, subsection 7, paragraph B, shall recommend to the 
board: 
(1)  A compensation schedule, formulated so that the aggregate cost of medical 
malpractice and the aggregate of participating provider fees are equal to or less 
than the prior fiscal year's aggregate cost of medical malpractice.  Compensation 
awards for each injury must be no less than the average indemnity payment 
reported by the Physician Insurers Association of America or a successor 
organization for similar medical injuries with similar severity.  The committee 
shall annually review the compensation schedule and, if necessary, recommend a 
revised schedule so that a projected increase in the upcoming fiscal year's 
aggregate cost of medical malpractice does not exceed the percentage change 
from the prior year in the medical care component of the Consumer Price Index 
for All Urban Consumers as compiled by the Bureau of Labor Statistics, United 
States Department of Labor; 
(2)  Guidelines for the payment of compensation awards through periodic 
payments; and 
(3)  Guidelines for the apportionment of the cost of compensation among 
multiple providers, which must be based on the historical apportionment among 
multiple providers for similar injuries with similar severity. 
§2996.  Independent medical review panels 
The chief medical officer of the system shall convene an independent medical review 
panel to evaluate each application to determine whether a medical injury occurred.  Each 
panel must be composed of an odd number of at least 3 panelists chosen from a list of 
panelists that represent the same or a similar specialty as the provider and convenes, 
either in person or by teleconference, at the call of the chief medical officer.  Each 
panelist must be paid a stipend as determined by the board for service on the panel.  In 
order to expedite the review of applications, the chief medical officer may, whenever 
practicable, group related applications together for consideration by a single panel. 
§2997.  Conflict of interest 
A board member, panelist of an independent medical review panel or employee of the 
system may not engage in any conduct that constitutes a conflict of interest.  For purposes 
of this section, "conflict of interest" means a situation in which the private interest of a 
board member, panelist or employee could influence that person's judgment in the 
performance of that person's duties under this subchapter.  A board member, panelist or 
employee shall immediately disclose in writing the presence of a conflict of interest when 
the board member, panelist or employee knows or reasonably should have known that the 
factual circumstances surrounding a particular application constitute or constituted a 
conflict of interest.  A board member, panelist or employee who violates this section is 
subject to disciplinary action as determined by the board.  "Conflict of interest" includes, 
but is not limited to: 
1.  Bias.  Conduct that would lead a reasonable person having knowledge of all of the 
circumstances to conclude that a board member, panelist or employee is biased against or 
in favor of an applicant; and 
2.  Financial interest.  Participation in an application in which the board member, 
panelist or employee or the parent, spouse or child of a board member, panelist or 
employee has a financial interest. 
§2998.  Rulemaking 
The board shall adopt routine technical rules pursuant to Title 5, chapter 375, 
subchapter 2-A to implement and administer this subchapter, including rules addressing: 
1.  Applications.  The application process, including forms necessary to collect 
relevant information from applicants; 
2.  Disciplinary procedures.  Disciplinary procedures for a board member, panelist 
of an independent medical review panel or employee of the system who violates the 
conflict of interest provisions of section 2997; 
3.  Stipends.  Stipends paid pursuant to section 2996 to panelists, which may be 
adjusted in accordance with the relative scarcity of the panelist's specialty, if applicable; 
4.  Compensation.  Payment of compensation awards through periodic payments and 
the apportionment of the cost of compensation among multiple providers, as 
recommended by the Compensation Committee; and 
5.  Opt-out process.  The opt-out process for providers under section 2999-C, 
subsection 5. 
§2999.  Filing of applications 
1.  Content.  In order to obtain compensation for a medical injury, an applicant or the 
applicant's legal representative must file an application with the system.  The application 
must include the following: 
A.  The name and address of the applicant and the applicant's legal representative and 
the basis of the representation; 
B.  The name and address of any participating provider who provided medical 
treatment allegedly resulting in the medical injury; 
C.  A brief statement of the facts and circumstances surrounding the medical injury; 
D.  An authorization for release to the Office of Medical Review of all protected 
health information that is potentially relevant to the application; 
E.  Any other information that the applicant believes will be beneficial to the 
investigatory process, including the names of potential witnesses; and 
F.  Documentation of any applicable collateral source relative to the medical injury. 
2.  Incomplete applications.  If an application is not complete, the system shall, 
within 30 days after the receipt of the initial application, notify the applicant in writing of 
any errors or omissions.  An applicant has 30 days after receipt of the notice in which to 
correct the errors or omissions in the initial application. 
3.  Time limit on applications.  An application must be filed within the time period 
specified in section 2902 for professional negligence actions. 
4.  Supplemental information.  After the filing of an application, the applicant may 
supplement the initial application with additional information that the applicant believes 
may be beneficial in the resolution of the application. 
5.  Legal counsel.  This section does not prohibit an applicant or participating 
provider from retaining an attorney to represent the applicant or participating provider in 
the review and resolution of an application. 
§2999-A.  Disposition of applications 
1.  Initial medical review.  The Office of Medical Review shall, within 10 days after 
the receipt of a completed application, determine whether the application, prima facie, 
constitutes a medical injury. 
A.  If the Office of Medical Review determines that the application, prima facie, 
constitutes a medical injury, the office shall immediately notify by registered or 
certified mail each participating provider named in the application and, for 
participating providers that are not self-insured, the insurer that provides coverage for 
the participating provider.  The notification must inform the participating provider 
that the participating provider may support the application to expedite the processing 
of the application.  A participating provider has 15 days after the receipt of 
notification of an application to support the application.  If the participating provider 
supports the application, the office shall review the application in accordance with 
subsection 2. 
B.  If the Office of Medical Review determines that the application does not, prima 
facie, constitute a medical injury, the office shall send a rejection letter to the 
applicant by registered or certified mail informing the applicant of the right to appeal 
the determination of the office. The applicant has 15 days after the receipt of the 
letter in which to appeal the determination of the office pursuant to section 2999-B. 
2.  Expedited medical review.  An application that is supported by a participating 
provider in accordance with subsection 1 must be reviewed by the Office of Medical 
Review within 30 days after notification of the participating provider's support of the 
application to determine the validity of the application.  If the Office of Medical Review 
finds that the application is valid, the Office of Compensation shall determine a 
compensation award in accordance with subsection 4.  If the Office of Medical Review 
finds that the application is not valid, the office shall immediately notify the applicant by 
registered or certified mail of the rejection of the application and the right to appeal the 
determination of the office. In the case of suspected fraud, the Office of Medical Review 
shall immediately notify relevant law enforcement authorities. 
3.  Formal medical review.  If the Office of Medical Review determines that the 
application, prima facie, constitutes a medical injury and the participating provider does 
not elect to support the application, the office shall complete a thorough investigation of 
the application within 60 days after the determination by the office.  The investigation 
must include a thorough investigation of all available documentation, witnesses and other 
information.  Within 15 days after the completion of the investigation, the chief medical 
officer shall allow the applicant and the participating provider to access records, 
statements and other information obtained in the course of the investigation, in 
accordance with relevant state and federal laws, rules and regulations. 
Within 30 days after the completion of the investigation under this subsection, the chief 
medical officer shall convene an independent medical review panel to determine whether 
the application constitutes a medical injury.  The independent medical review panel must 
have access to all information, with names redacted, obtained by the office in the course 
of the investigation of the application and shall make a written determination, which must 
be immediately provided to the applicant and the participating provider. 
A.  If the independent medical review panel determines that: 
(1)  The medical treatment conformed to national practice standards for the care 
and treatment of patients, then the application must be dismissed and the 
participating provider is not held responsible for the applicant's medical injury; or 
(2)  All of the following criteria exist by a preponderance of the evidence, then 
the panel shall report that the application constitutes a medical injury: 
(a)  The participating provider performed a medical treatment on the 
applicant; 
(b)  The applicant suffered a personal injury or wrongful death; 
(c)  The medical treatment was the proximate cause of the personal injury or 
wrongful death; and 
(d)  One or more of the following has occurred: 
(i)  An accepted medical treatment was not used; 
(ii)  An accepted medical treatment was used but was executed in a 
substandard fashion; and 
(iii)  An accepted medical treatment was used, but, as determined by a 
prospective analysis, personal injury or wrongful death could have been 
avoided by using a less hazardous but equally effective medical 
treatment. 
B.  If the independent medical review panel determines that the application 
constitutes a medical injury, the Office of Medical Review shall immediately notify 
the participating provider by registered or certified mail of the right to appeal the 
determination of the panel.  The participating provider has 15 days after the receipt of 
the letter in which to appeal the determination of the panel pursuant to section 
2999-B. 
C.  If the independent medical review panel determines that the application does not 
constitute a medical injury, the Office of Medical Review shall immediately notify 
the applicant by registered or certified mail of the right to appeal the determination of 
the panel.  The applicant has 15 days from the receipt of the letter to appeal the 
determination of the panel pursuant to section 2999-B. 
4.  Compensation review.  If the Office of Medical Review finds that an application 
under expedited medical review under subsection 2 is valid, or if an independent medical 
review panel finds that an application constitutes a medical injury under subsection 3 and 
all appeals of that finding have been exhausted by the participating provider pursuant to 
section 2999-B, the Office of Compensation shall, within 30 days after the finding or the 
exhaustion of all appeals of that finding, whichever occurs later, make a written 
determination of a compensation award in accordance with the compensation schedule 
and the finding.  The office shall notify the applicant and the participating provider by 
registered or certified mail of the amount of the compensation award and shall also 
explain to the applicant the process to appeal the determination of the office.  The 
applicant has 15 days from the receipt of the letter to appeal the determination of the 
office pursuant to section 2999-B. 
5.  Limitation on compensation.  Compensation for each application must be offset 
by any past and future collateral source payments. Compensation may be paid by periodic 
payments as determined by the Office of Compensation in accordance with rules adopted 
by the board under section 2998. 
6.  Payment of compensation.  Within 14 days after the acceptance of a 
compensation award by the applicant or the conclusion of all appeals pursuant to section 
2999-B, whichever occurs later, the participating provider, or the insurer for a 
participating provider who has insurance coverage, shall remit the compensation award to 
the system, which shall immediately provide compensation to the applicant. Beginning 45 
days after the acceptance of a compensation award by the applicant or the conclusion of 
all appeals pursuant to section 2999-B, whichever occurs later, an unpaid award begins to 
accrue interest at the rate of 18% per year. 
7.  Professional board notice.  The system shall provide the department with 
electronic access to applications for which a medical injury was determined to exist 
related to a participating provider licensed under Title 32, chapter 36 or 48 when the 
participating provider represents an imminent risk of harm to the public.  The department 
shall review such applications to determine whether any of the incidents that resulted in 
the application potentially involved conduct by the licensee that is subject to disciplinary 
action, in which case chapter 36 or 48 applies as appropriate. 
§2999-B.  Review by Superior Court; appellate review; extensions of time 
1.  Review by Superior Court.  The Superior Court shall hear and determine appeals 
filed under this subchapter.  The Superior Court is limited to determining whether the 
Office of Medical Review, the independent medical review panel or the Office of 
Compensation, as appropriate, has faithfully followed the requirements of this subchapter 
and rules adopted under this subchapter in reviewing applications.  If the Superior Court 
determines that such requirements were not followed in reviewing an application, the 
court shall require the office to perform another initial medical review or shall require the 
chief medical officer to either reconvene the original independent medical review panel 
or convene a new independent medical review panel or shall require the Office of 
Compensation to redetermine the compensation amount, in accordance with the 
determination of the court. 
2.  Appellate review.  A determination by the Superior Court under subsection 1 
regarding the award or denial of compensation under this subchapter is conclusive and 
binding as to all questions of fact and must be provided to the applicant and the 
participating provider.  An applicant may appeal the compensation award or the denial of 
compensation to the Supreme Judicial Court.  Appeals must be filed in accordance with 
rules of procedure adopted by the Supreme Judicial Court. 
3.  Extensions of time.  Upon a written petition by either the applicant or the 
participating provider, the Superior Court may grant, for good cause, an extension of any 
of the time periods specified in this subchapter.  The relevant time period is tolled from 
the date of the written petition until the date the Superior Court issues a determination. 
§2999-C.  Expenses of administration; opt out 
1.  Fees.  The board annually shall determine a fee that must be paid by each 
provider, unless the provider opts out of participation in the system pursuant to subsection 
5. The fee amount must be determined by July 1st of each year and must be based on the 
anticipated expenses of the administration of this subchapter for the next fiscal year. 
2.  Schedule.  The fee determined under this section must be payable by each 
provider upon notice delivered by July 1st each year.  Each provider shall pay the fee 
within 30 days after the date the notice is delivered to the provider.  If a provider fails to 
pay the fee determined under this section within 30 days after notice, the board shall 
notify the provider by certified or registered mail that the provider's license is subject to 
revocation if the fee is not paid within 60 days from the date of the original notice. 
3.  Licensure revocation.  A provider that has not opted out of participation in the 
system pursuant to subsection 5 that fails to pay the fee determined under this section 
within 60 days after receipt of the original notice is subject to a licensure revocation 
action by the department. 
4.  Account.  All fees collected under this section must be paid into the Patient 
Compensation System Fund established in section 2999-F. 
5.  Opt out.  A provider may elect to opt out of participation in the system.  The 
election to opt out must be made in writing no later than 15 days before the due date of 
the fee required under this section.  A provider that opts out may subsequently elect to 
participate by paying the appropriate fee for the current year. 
§2999-D.  Notice to patients of participation in the system 
1.  Notice.  Each participating provider shall provide notice to the participating 
provider's patients that the participating provider is participating in the system.  The 
notice must be provided on a form furnished by the system and include a concise 
explanation of a patient's rights and benefits under the system. 
2.  Exceptions.  Notice under subsection 1 is not required to be given to a patient 
when the patient has a medical emergency, as defined in Title 32, section 1525-A, 
subsection 2, or when notice is not practicable. 
§2999-E.  Annual report 
The board annually, beginning on October 1, 2016, shall submit to the Department of 
Professional and Financial Regulation, the Governor and the joint standing committee of 
the Legislature having jurisdiction over insurance matters a report that describes the filing 
and disposition of applications in the preceding fiscal year.  The report must include, in 
the aggregate, the number of applications, the disposition of the applications and the 
compensation awarded. 
§2999-F.  Patient Compensation System Fund 
The Patient Compensation System Fund, referred to in this section as "the fund," is 
established within the department as a nonlapsing fund for the purposes specified in this 
subchapter.  The fund is funded from the fees collected under section 2999-C and from 
other funds accepted by the department or allocated or appropriated by the Legislature.  
Allocations from the fund must be made for expenses of the administration of this 
subchapter, including the costs the board may incur for staff, administrative support 
services, legal representation and contracted services. 
§2999-G.  Exclusive remedy 
The rights and remedies granted by this subchapter due to a personal injury or 
wrongful death exclude all other rights and remedies of the applicant and the applicant's 
personal representative, parents, dependents and next of kin against any participating 
provider directly involved in providing the medical treatment resulting in the injury or 
death, arising out of or related to a professional negligence claim, whether in tort or in 
contract, with respect to the injury or death.  Notwithstanding any other law, this 
subchapter applies exclusively to applications submitted under this subchapter. 
§2999-H.  Early offer 
This subchapter does not prohibit a self-insured provider or an insurer from providing 
an early offer of settlement or apology in satisfaction of a medical injury.  A person who 
accepts a settlement or apology offer under this section may not file an application under 
this subchapter for the same medical injury.  If an application has been filed before the 
offer of settlement or apology, the acceptance of the settlement or apology offer by the 
applicant results in the withdrawal of the application. 
§2999-I.  Wrongful death 
Compensation may not be provided under this subchapter for an application that 
requests an investigation of an alleged wrongful death due to medical treatment if that 
application is filed by an adult child on behalf of the adult child's parent or by a parent on 
behalf of the parent's adult child. 
Sec. 3.  Staggered terms.  Notwithstanding the Maine Revised Statutes, Title 24, 
section 2994, subsection 2, of the initial appointments to the Patient Compensation 
Board, the 5 members appointed by the Governor under Title 24, section 2994, subsection 
1, paragraphs A to E are appointed to 2-year terms, and the remaining 6 members are 
appointed to 3-year terms.  
Sec. 4.  Application.  This Act applies to medical incidents for which a notice of 
intent to initiate litigation has not been mailed before July 1, 2016. 
SUMMARY 
This bill establishes within the Department of Professional and Financial Regulation 
the Patient Compensation System, which allows a person who has suffered a medical 
injury to receive compensation outside of the court system.  The Patient Compensation 
System is governed by a board of medical, legal, patient and business representatives.  
The bill establishes 3 offices within the system to provide medical review of claims, 
compensation allocations and quality review, as well as 2 committees to provide guidance 
in the selection of medical review panelists and the design of compensation schedules.  
The bill also creates the Patient Compensation System Fund, which is funded by fees paid 
by physicians participating in the system.