Legislative Update: Gov. Bredesen Signs Bill Amending Peer Review Law
Knoxville Academy of Medicine Bulletin – June 2009
By Ian P. Hennessey

In February 2009, state Sen. Douglas Overbey and state Rep. Kent Coleman introduced legislation extending the Peer Review Law (T.C.A. § 63-6-219) to physician group practices.  On April 9, 2009, Governor Bredesen signed the bill into law, which became effective immediately.

Originally passed in 1967, the Peer Review Law seeks to encourage committees of licensed physicians to “candidly, conscientiously, and objectively evaluate and review their peers’ professional conduct, competence, and ability to practice medicine.”  T.C.A. § 63-6-219.  The Peer Review Law empowers peer review committees to evaluate the quality of patient care, ensure that treatment is rendered within the standard of care, ensure that fees are reasonable, provide Medicare utilization review, and provide intervention, support, or rehabilitative referrals or services, among other duties. 

To provide incentive to engage in peer review activities, the statute protects peer review committees from liability for their good faith efforts.  Peer review committees are presumed to have acted in good faith.  In addition, the statute also provides legal immunity to witnesses and other persons providing information to peer review committees unless the information provided is false and the person knew it was false. 

The proceedings of peer review committees are also privileged and confidential.  In addition, all information generated by a peer review committee, including any findings, conclusions or recommendations, are privileged.  As long as such materials are used by a peer review committee for its proper functions, the materials are not considered public records and are not subject to court subpoenas or discovery proceedings. 

Under the original Peer Review Law, peer review committees could be formed only by licensed health care institutions, professional associations, medical care foundations, health maintenance organizations, or preferred provider organizations.  As such, a physician practice group could not form peer review committees to evaluate its own physicians.  However, under the recently passed legislation amending the Peer Review Law, physician practice groups are now free to establish their own peer review committees with the same powers, immunities, and other protections as those established by hospitals and other entities.

Disclaimer: The information contained herein is strictly informational; it is not to be construed as legal advice.