1.1 	A bill for an act
1.2 	relating to insurance; specifying financial responsibility for hospital-caused 
1.3 	adverse health events;proposing coding for new law in Minnesota Statutes, 
1.4 	chapter 604.
1.5 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.6 	Section 1. [604.111] HOSPITAL FINANCIAL RESPONSIBILITY FOR 
1.7 	ADVERSE HEALTH EVENTS.
1.8 		Subdivision 1.Definition; adverse health events. For purposes of this section, 
1.9 	"adverse health events" has the meaning established in section 144.7065.
1.10 		Subd. 2.Payment for adverse health events. (a) A hospital is liable for all 
1.11 	corrective medical and hospital service costs that are reasonably necessary as a result of an 
1.12 	adverse health event created or increased by the hospital.
1.13 	(b) The patient may obtain the corrective medical or hospital services from any 
1.14 	appropriate medical or hospital provider, the cost of which must be paid by the hospital 
1.15 	responsible for the adverse health event.

1.16 	EFFECTIVE DATE. This section is effective August 1, 2012, and applies to 
1.17 	adverse health events created on or after that date.