109 STAT. 780
PUBLIC LAW 104-73 —DEC. 26, 1995
condition under paragraph (1)(D) of such section (as added by
subsection (a) of this section) that an appHcation be approved with
respect to the entity does not apply until the expiration of the
180-day period beginning on such date.
SEC. 6. TIMELY RESPONSE TO FILING OF ACTION OR PROCEEDING.
Section 224 (42 U.S.C. 233) is amended by adding at the end
thereof the following subsection:
"(1)(1) If a civil action or proceeding is filed in a State court
against any entity described in subsection (g)(4) or any officer,
governing board member, employee, or any contractor of such an
entity for damages described in subsection (a), the Attorney General,
within 15 days after being notified of such filing, shall make an
appearance in such court and advise such court as to whether
the Secretary has determined under subsections (g) and (h), that
such entity, officer, governing board member, employee, or contractor of the entity is deemed to be an employee of the Public Health
Service for purposes of this section with respect to the actions
or omissions that are the subject of such civil action or proceeding.
Such advice shall be deemed to satisfy the provisions of subsection
(c) that the Attorney General certify that an entity, officer, governing board member, employee, or contractor of the entity was acting
within the scope of their employment or responsibility.
"(2) If the Attorney General fails to appear in State court
within the time period prescribed under paragraph (1), upon petition
of any entity or officer, governing board member, employee, or
contractor of the entity named, the civil action or proceeding shall
be removed to the appropriate United States district court. The
civil action or proceeding shall be stayed in such court until such
court conducts a hearing, and makes a determination, as to the
appropriate forum or procedure for the assertion of the claim for
damages described in subsection (a) and issues an order consistent
with such determination.".
SEC. 7. APPLICATION OF COVERAGE TO MANAGED CARE PLANS.
42 USC 233.
Section 224 (42 U.S.C. 223) (as amended by section 6) is amended by adding at the end thereof the following subsection:
"(m)(l) An entity or officer, governing board member, employee,
or contractor of an entity described in subsection (g)(1) shall, for
purposes of this section, be deemed to be an employee of the
Public Health Service with respect to services provided to individuals who are enrollees of a managed care plan if the entity contracts
with such managed care plan for the provision of services.
"(2) Each managed care plan which enters into a contract
with an entity described in subsection (g)(4) shall deem the entity
and any officer, governing board member, employee, or contractor
of the entity as meeting whatever malpractice coverage requirements such plan may require of contracting providers for a calendar
year if such entity or officer, governing board member, employee,
or contractor of the entity has been deemed to be an employee
of the Public Health Service for purposes of this section for such
calendar year. Any plan which is found by the Secretary on the
record, after notice and an opportunity for a full and fair hearing,
to have violated this subsection shall upon such finding cease,
for a period to be determined by the Secretary, to receive and
to be eligible to receive any Federal funds under titles XVIII or
XIX of the Social Security Act.
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