A1987

An Act concerning licenses to practice medicine and amending P.L.1997, c.365 and supplementing Title 45 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 1 of P.L.1997, c.365 (C.45:9-19.17) is amended to read as follows:

1. a. A physician who maintains a professional medical practice in this State and has responsibility for patient care is required to be covered by medical malpractice liability insurance issued by a carrier authorized to write medical malpractice liability insurance policies in this State, in the sum of $1,000,000 per occurrence and $3,000,000 per policy year and unless renewal coverage includes the premium retroactive date, the policy shall provide for extended reporting endorsement coverage for claims made policies, also known as "tail coverage," or, if such liability coverage is not available, by a letter of credit for at least $500,000.

The physician shall notify the State Board of Medical Examiners of the name and address of the insurance carrier or the institution issuing the letter of credit, pursuant to section 7 of P.L.1989, c.300 (C.45:9-19.7).

Notwithstanding any law, rule, or regulation to the contrary, no person holding a limited license to practice medicine and surgery pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), and practicing under the scope of that license, shall be required to be covered by medical malpractice liability insurance.

b. A physician who is in violation of this section is subject to disciplinary action and civil penalties pursuant to sections 8, 9 and 12 of P.L.1978, c.73 (C.45:1-21 to 22 and 45:1-25).

c. The State Board of Medical Examiners may, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), establish by regulation, minimum amounts for medical malpractice liability insurance coverage and lines of credit in excess of those amounts required pursuant to subsection a. of this section.

d. The State Board of Medical Examiners shall notify all physicians licensed by the board of the requirements of this section within 30 days of the date of enactment of P.L.2004, c.17.

(cf: P.L.2004, c.17, s.25)

2. (New section) There is established a limited license to practice medicine and surgery available to retired licensees who may wish to continue the practice of medicine and surgery in a limited capacity.

a. Any person desiring to obtain a limited license to practice medicine and surgery shall submit to the board an application and fee not to exceed $300 and demonstrate that the applicant has been licensed to practice medicine in any jurisdiction in the United States for at least 10 years and intends to practice only pursuant to the restrictions of a limited license to practice medicine and surgery granted pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill). A physician who is not fully retired in all jurisdictions may use a limited license to practice medicine and surgery only for uncompensated practice. Application and licensure fees shall be waived for applicants who submit a statement from the employing agency or institution stating that the applicant will not receive compensation for any service involving the practice of medicine and surgery. Any person who receives a waiver of fees for a limited license to practice medicine and surgery shall be required to pay the fees if the person receives compensation for the practice of medicine and surgery.

b. If the applicant has not practiced in more than 3 years, the health officer of the county or municipal health department, or a licensed physician approved by the board, shall supervise the applicant for a period of 6 months after the applicant is granted a limited license to practice medicine and surgery, unless the board determines that a shorter period of supervision will be sufficient to ensure that the applicant is qualified for licensure. Procedures for this supervision shall be established by the board.

c. The recipient of a limited license to practice medicine and surgery shall practice only in the employ of public agencies or institutions, or nonprofit agencies or institutions meeting the requirements of section 501(c)(3) of the Internal Revenue Code (26 U.S.C. s.501(c)(3)), which agencies or institutions are located in medically underserved areas, as determined by the board. Determination of medically underserved areas shall be made by the board after consultation with the Department of Health and statewide medical organizations. The determination shall include, but not be limited to, health professional shortage areas designated by the United States Department of Health and Human Services. A licensee may work for any approved employer in any medically underserved area approved by the board.

d. The recipient of a limited license to practice medicine and surgery shall, within 30 days after accepting employment, notify the board of all approved institutions in which the licensee practices and of all approved institutions where practice privileges have been denied.

e. The board may refuse to authorize a physician otherwise qualified to practice in the employ of any agency or institution otherwise qualified if the agency or institution has caused or permitted violations of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) which it was aware or should have been aware were occurring.

f. The board shall notify the health officer of the county or municipal health department of any county in which a licensee intends to practice under the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). The county or municipal health officer shall assist in the supervision of any licensee within the county or municipality and shall notify the board if the health officer becomes aware of any actions by the licensee which would be grounds for revocation of the limited license to practice medicine and surgery. The board shall establish procedures for the supervision of licensees.

g. The board shall review the practice of each licensee biennially to verify compliance with the provisions established in P.L. , c. (C. ) (pending before the Legislature as this bill).

h. Any person holding an active license to practice medicine and surgery in this State may convert that license to a limited license to practice medicine and surgery for the purpose of providing volunteer, uncompensated care for low-income residents of New Jersey. The applicant must submit a statement from the employing agency or institution stating that the applicant will not receive compensation for any service involving the practice of medicine and surgery. The application and all licensure fees shall be waived.

3. This act shall take effect on the first day of the seventh month next following the date of enactment, but the board may take such anticipatory administrative action in advance thereof as shall be necessary for the implementation of this act.

STATEMENT

This bill establishes a limited license to practice for physicians. Under the bill, physicians who retire may continue to practice in certain situations. Physicians who choose to use the limited license will not be required to carry medical malpractice insurance.

In order to receive a limited medical license, an applicant must submit to the board an application and fee and demonstrate that he or she has been licensed to practice medicine in any jurisdiction in the United States for at least 10 years and intends to practice only pursuant to the restrictions of a limited license to practice medicine and surgery. If the applicant has not practiced in more than 3 years, the health officer of the county or municipality health department or a licensed physician, approved by the board, shall supervise the applicant for a period of 6 months after he or she is granted a limited license to practice medicine and surgery, unless the board determines that a shorter period of supervision will be sufficient to ensure that the applicant is qualified for licensure.

The recipient of a limited license to practice medicine and surgery shall practice only in the employ of public agencies or institutions, or nonprofit agencies or institutions meeting the requirements of s.501(c)(3) of the Internal Revenue Code, which agencies or institutions are located in medically underserved areas, as determined by the board. Determination of medically underserved areas shall be made by the board after consultation with the Department of Health and statewide medical organizations; however, the determination shall include, but not be limited to, health professional shortage areas designated by the United States Department of Health and Human Services. A licensee may work for any approved employer in any medically underserved area approved by the board.