- House Committee Substitute -

HCS/SB 788 - This act amends the law relating to "whistleblowing" by state employees. Current law prohibits agencies from disciplining employees for disclosing mismanagement, waste of funds and abuse of authority but allows discipline if the employee releases information with reckless disregard for its truth or falsity. This act allows discipline only if the employee knows that the information is false. The act also provides that agencies cannot prohibit employees from contacting the State Auditor.

This act requires hospitals and ambulatory surgical centers to establish a written policy regarding the protection of employees who disclose information relating to facility mismanagement, violations of federal or state laws, or the ability of employees to successfully perform their duties. Supervisors of such facilities shall not prohibit an employee from disclosing such information. A supervisor is also prohibited from harassing or discriminating against an employee who has reported this type of information.

All information disclosed to a corporate compliance program shall be collected, maintained and accessible to the Department of Health. The Department of Health shall review the information at least annually.

Each hospital or ambulatory surgical center shall establish a corporate compliance program where an employee can disclose such information. The corporate compliance program shall include a time frame for completion of investigations related to complaints, not to exceed 30 days, and a method of notifying the person disclosing the information. Each program shall designate a person for administering the reporting and investigation process of the program. The Department of Health shall review each corporate compliance program to ensure that the program is meeting the standards set forth by this act.

If an investigation leads to information of misconduct and the investigating officer has reason to believe a criminal, civil or administrative law has been violated, the hospital or ambulatory surgical center shall report the misconduct to the responsible governmental body within a minimum of 60 days. When reporting the misconduct, the hospital or ambulatory surgical center shall provide all evidence related to the alleged violation of the applicable federal or state law and the potential cost impact of the violation. The compliance officer shall notify the outcome of the investigation to the appropriate governmental authority, including a description of the impact of the alleged violation on the operation of the health care programs or their beneficiaries.

Each corporate compliance program shall allow employees to report such information anonymously and shall make safeguards to protect the confidentiality of the employees making the reports. Each hospital and surgical ambulatory center, within 48 hours, shall notify the employee that his or her report has been received and is being reviewed.

Employees shall first disclose any alleged misconduct to the corporate compliance program before reporting it to any other source.

STEPHEN WITTE