The Affordable Care Act of 2010 calls for states to create health
insurance exchanges, which must be operational by Jan. 1, 2014.
Health insurance exchanges are charged with expanding coverage
for the uninsured, improving health care quality, reducing costs,
and empowering consumers to choose a health plan that gives them
the best value.
By January 1, 2017, qualified health plans in insurance exchanges
may not contract with a hospital of 50 beds or more unless that
hospital has a patient safety evaluation system and reports data
to a PSO. The deadline originally was 2015, but has been extended
two years to allow hospitals time to choose a PSO and begin
Although January 1, 2017 may seem a way off, it is not. Contracts
with health plans are typically for terms of one year or more.
This means that by January 1, 2016, new contracts must comply
with 2017 requirements, or face cancellation at year end.
Members can call CHPSO at (916) 552-2600 to obtain support for
implementing a patient safety evaluation system and automating
Relevant text of the Affordable Care Act
(h) QUALITY IMPROVEMENT.—
(1) ENHANCING PATIENT SAFETY.—Beginning on January 1, 2015, a
qualified health plan may contract with—
(A) a hospital with greater than 50 beds only if such hospital—
(i) utilizes a patient safety evaluation system as described in
part C of title IX of the Public Health Service Act; and
(ii) implements a mechanism to ensure that each patient receives
a comprehensive program for hospital discharge that includes
patient-centered education and counseling, comprehensive
discharge planning, and post discharge reinforcement by an
appropriate health care professional; or
(B) a health care provider only if such provider implements such
mechanisms to improve health care quality as the Secretary may by
(2) EXCEPTIONS.—The Secretary may establish reasonable exceptions
to the requirements described in paragraph (1).
(3) ADJUSTMENT.—The Secretary may by regulation adjust the number
of beds described in paragraph (1)(A).
Relevant text of part C of title IX of the Public Health Service
Patient safety evaluation system means the collection,
management, or analysis of information for reporting to or by a