LOS ANGELES COUNTY
DEPARTMENT OF MENTAL HEALTH
  Policy 303.07 Reporting Named or Alleged Licensees to Licensing Boards
 
Policy Category:  Clinical 
Distribution Level:  Directly Operated
Responsible Party: Clinical Risk Management
 
Approved by Curley L. Bonds, MD, Chief Medical Officer, on Mar 09, 2023
I. PURPOSE
 
To establish a Los Angeles County Department of Mental Health (DMH/Department) process for apportioning, and subsequently reporting settlements, judgments, or arbitration awards exceeding certain dollar amounts in medical malpractice claims against a licensee to the National Practitioner Data Bank (NPDB) (45 CFR Part 60), and appropriate licensing bodies (California Business and Professions Code Sections 801.01 et seq.). 
 
II.  DEFINITIONS
 
Apportionment: The process of determining the percentage of a settlement that is attributed to a named or alleged licensed healthcare practitioner as a result of a claim for damages for death or personal injury allegedly resulting from a licensee’s negligence, error, or omission in practice by the unauthorized rendering of professional services.
 
Arbitration: The process of resolving a dispute through the use of an unbiased third person (arbitrator) designated by the involved parties, who agree in advance to comply with the award decision of the arbitrator.
 
Judgment: A decision by a court that resolves a dispute and determines the rights and obligations of the parties involved, including any required payout of money by the parties involved (such as named licensed healthcare practitioners in a medical malpractice lawsuit).
 
Licensee: An individual who is licensed and authorized by the State of California to provide healthcare services (e.g. physicians, residents with training licenses, nurses, psychologist, social worker, etc.).
 
Mediation: A process of resolving a dispute through a neutral third-party mediator who acts as a facilitator in negotiating an agreement between contesting parties. Mediation differs from arbitration in that the involved parties are not bound by the recommendations of the mediator.
 
National Practitioner Data Bank (NPDB): A clearinghouse developed by the federal government to collect and release certain information related to the professional competence and conduct of physicians, nurses, and other licensee(s).
 
Settlement: The process of resolving a dispute between parties without pursuing the matter through a trial.
 
III.  POLICY
 
DMH employees shall be covered by County of Los Angeles (COLA) Certificate of Self-Insurance Coverage for actions performed within the course and scope of their practice and verified employment period within DMH.

Federal law requires the reporting of all medical malpractice payments, regardless of amount, to the NPDB.

DMH shall report any medical malpractice payments, resulting from a written claim or judgment against a named licensee to the NPDB within 30 calendar days of the date the payment was made (45 CFR Part 60).

DMH shall report settlements, judgments, or arbitration awards exceeding those reporting thresholds referenced in the procedures to the licensing boards (CA Business and Professions Code Section 801.01 et seq.).


In the event of a:
  • Settlement, the specific amount apportioned to each named or alleged provider shall be determined through the apportionment process described in the procedures.
  • Judgment or arbitration award against a licensee, the specific amount apportioned to each named or alleged licensee exceeding those thresholds shall be reported to the appropriate licensing board.
  • Conflict of interest affecting COLA defense counsel's representation of the licensee and the County, a separate defense counsel may be assigned to represent the licensee. 
IV.  PROCEDURES
 
Procedures - Reporting Named or Alleged Licensees to Licensing Boards
 
V.  AUTHORITIES
 
VI.  ATTACHMENTS
 
No attachments are associated with this policy.