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settlement. The hospital’s management team may need to spend time and money to invand modify policies to minimize future errors. Cumulative errors could also affect the reputation and re-accreditation.LegislationThe HEALTH Act of 2005Passed into law, the HEALTH Act (or Help Efficient, Accessible, Low-cost, Timely HeAct), places multiple limits on liability claims. The law caps noneconomic damages inmalpractice suits at $250,000 for compensating patient injury, limits attorneys’ contingand requires a finding of malicious intent to support an award of punitive damages. Thexempts manufacturers and distributors of medical products from punitive damage awU.S. Food and Drug Administration approved the product (Jarred, 2018).The Patient Safety and Quality Improvement Act of 2005
Also signed into law, this act establishes a voluntary, confidential reporting structure fophysicians, hospitals, and other healthcare professional and entities. This law renders rmedical errors into confidential, privileged data and allows healthcare providers to repmedical errors under a “patient safety activity” umbrella that prohibits the informationused in a civil action (i.e. liability case). All medical errors reported are covered by thenot subject to subpoena, Freedom of Information Act request, or use in a disciplinary p(Jarred, 2018).The National Medical Error Disclosure and Compensation Act of 2005Also known as the MEDiC Act, this bill was introduced in the Senate in September 20Senator Hillary Rodham Clinton (D-N.Y.) and Senator Barack Obama (D-Ill.) (Jarred, Designed to extend the Patient Safety and Quality Improvement Act of 2005 and “promculture of safety within hospitals, health systems, clinics, and other sites of healthcare,would establish a federal Office of Patient Safety and Health Care Quality to implemenoversee a new national patient safety database, as well as the MEDiC Program. This prwould provide funding to those healthcare providers with systems to disclose medical patients and offer fair compensation to patients if the provider is at fault.In reducing administrative and legal costs for medical malpractice claims, the MEDiC require participating medical liability insurance companies and healthcare providers topercentage of their savings toward reducing medical errors. The bill also requires that, extent possible, some of these cost savings be passed along to providers as lower malpinsurance premiums (Jarred, 2018).Legislation addressing medical errors has been introduced in both houses of Congress.The Medical Errors Reduction Act of 2000called for the implementation of 15 demonsprojects in order to determine optimal strategies for gathering medical error data and tothe impact of mandatory and voluntary reporting mechanisms and public disclosure ofThe bill also called for demonstration projects to test technologic means of reducing thof errors (Kim, & Schulman, 2000).