2005 - 2006 LEGISLATURE
ASSEMBLY SUBSTITUTE AMENDMENT 2,
TO 2005 ASSEMBLY BILL 259
May 24, 2005 - Offered by Representative Gielow.
AB259-ASA2,1,3 1An Act to amend 655.001 (7t), 655.005 (2t), 655.23 (5m) and 655.27 (3) (a) 4.;
2and to create 655.002 (1) (em) of the statutes; relating to: provider
3organizations subject to health care liability requirements.
Analysis by the Legislative Reference Bureau
Under current law, certain health care providers are required to carry health
care liability insurance with liability limits of at least $1,000,000 for each occurrence
and at least $3,000,000 for all occurrences in a policy year. If a medical malpractice
claim against a health care provider who is subject to the health care liability
insurance requirements exceeds the limits of the provider's health care liability
insurance, the injured patients and families compensation fund pays the portion of
the claim that exceeds the limits. The injured patients and families compensation
fund is funded by assessments paid by the health care providers who are subject to
the health care liability requirements.
Health care providers who are currently subject to the health care liability
requirements include physicians, nurse anesthetists, partnerships composed of
physicians or nurse anesthetists, corporations that operate for the primary purpose
of providing the medical services of physicians or nurse anesthetists, cooperative
sickness care associations, and such entities as hospitals, ambulatory surgery
centers, and nursing homes whose operations are combined as a single entity with
a hospital. This substitute amendment adds, as another type of health care provider

that is subject to the health care liability requirements, any organization or
enterprise organized and operated in this state for the primary purpose of providing
the medical services of physicians or nurse anesthetists.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB259-ASA2, s. 1 1Section 1. 655.001 (7t) of the statutes is amended to read:
AB259-ASA2,2,62 655.001 (7t) "Health care practitioner" means a health care professional, as
3defined in s. 180.1901 (1m), who is an employee of a health care provider described
4in s. 655.002 (1) (d), (e), (em), or (f) and who has the authority to provide health care
5services that are not in collaboration with a physician under s. 441.15 (2) (b) or under
6the direction and supervision of a physician or nurse anesthetist.
AB259-ASA2, s. 2 7Section 2. 655.002 (1) (em) of the statutes is created to read:
AB259-ASA2,2,108 655.002 (1) (em) Any organization or enterprise not specified under par. (d) or
9(e) that is organized and operated in this state for the primary purpose of providing
10the medical services of physicians or nurse anesthetists.
AB259-ASA2, s. 3 11Section 3. 655.005 (2t) of the statutes is amended to read:
AB259-ASA2,2,1312 655.005 (2t) Subsection (2) does not affect the liability of a health care provider
13described in s. 655.002 (1) (d), (e), (em), or (f) for the acts of its employees.
AB259-ASA2, s. 4 14Section 4. 655.23 (5m) of the statutes is amended to read:
AB259-ASA2,2,1715 655.23 (5m) The limits set forth in sub. (4) shall apply to any joint liability of
16a physician or nurse anesthetist and his or her corporation or, partnership, or other
17organization or enterprise
under s. 655.002 (1) (d) or , (e), or (em).
AB259-ASA2, s. 5 18Section 5. 655.27 (3) (a) 4. of the statutes is amended to read:
AB259-ASA2,3,219 655.27 (3) (a) 4. For a health care provider described in s. 655.002 (1) (d), (e),
20(em),
or (f), risk factors and past and prospective loss and expense experience

1attributable to employees of that health care provider other than employees licensed
2as a physician or nurse anesthetist.
AB259-ASA2, s. 6 3Section 6 . Initial applicability.
AB259-ASA2,3,54 (1) Organizations subject to insurance requirements. This act first applies
5to all of the following:
AB259-ASA2,3,106 (a) Policies that are issued or renewed on the effective date of this paragraph
7and to policies that are in effect on the effective date of this paragraph, that are in
8compliance with chapter 655 of the statutes, as affected by this act, and that cover
9organizations or enterprises that are in compliance with chapter 655 of the statutes,
10as affected by this act.
AB259-ASA2,3,1511 (b) Claims made under policies that are issued or renewed on the effective date
12of this paragraph and to claims made under policies that are in effect on the effective
13date of this paragraph, that are in compliance with chapter 655 of the statutes, as
14affected by this act, and that cover organizations or enterprises that are in
15compliance with chapter 655 of the statutes, as affected by this act.
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