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(H.B. 3593) (Conference) (No. 229) (Approved August 24, 2004) AN ACT To amend Section 2 of Act No. 104 of June 29, 1955, as amended, in order to include within the limits mentioned in said Section, those health professionals that work in the fields of obstetrics, orthopedics, general surgery and trauma exclusively in public health institutions of the Commonwealth, its dependencies, instrumentalities and/or municipalities, regardless of whether said institutions are being administered or operated by a private entity, and for other purposes. STATEMENT OF MOTIVES Act No. 104 of June 29, 1955, as amended, limits the liability of the Commonwealth of Puerto Rico, its dependencies and instrumentalities to the amount of seventy-five thousand (75,000) dollars for damages and losses sustained by a person or his/her property and to up to one hundred and fifty thousand (150,000) dollars when the damages and losses are sustained by more than one person, or when there are several causes of action to which only one injured party is entitled. Within those limits, the University of Puerto Rico was included in later legislation regarding those cases of claims for medical-hospital malpractice. See, Section 41.050 of the Puerto Rico Insurance Code. Said institution serves the same public purposes as the municipal diagnostic and treatment centers and the public regional hospitals.

The changes brought about by the process of privatizing the health services that took place in the 90 s and the high costs of the malpractice insurance policies have affected the services provided by such health facilities as the Diagnostic and Treatment Centers and the public regional hospitals. Many of the municipalities of the Commonwealth, in spite of being the owners of their health centers, have privatized their administration or operation. Even though those health professionals who work there are rendering a public service that was delegated through government action, they would not be covered by the limits of the amounts provided by Act No. 104, supra, should any allegation of malpractice arise. In view of this fact, some of these professionals choose to render their services in private institutions because of the employment security and the many economic benefits these provide. Many of our public health centers, in spite of being privately administered, receive economic aid from the municipal governments as well as from the Legislature and the Executive Power, since they constitute the backbone of the hospital public service. More so, the public policy of the Commonwealth is directed towards strengthening the medical-hospital services and providing the people of Puerto Rico, especially the medically indigent population, with total access to their services. This Act is consonant with the intention of Act No. 104, supra, in that it gives the citizens the authority to initiate causes of action for alleged damages and losses against the Commonwealth, since it never impinges upon their right to initiate causes of action for alleged damages and losses. Considering that the health professionals are carrying out a public function in a public institution, regardless of the central administration, they must be protected by the provisions of Act No. 104, supra, the Actions Against the

Commonwealth of Puerto Rico Act. The purpose of the present Act is solely to safeguard and strengthen government health services by extending the benefits of Act No. 104, supra, to all public health professionals that render their services in facilities owned by the Commonwealth (ELA, Spanish acronym), its dependencies, instrumentalities and/or municipalities. Under no circumstances whatsoever must it be understood that the private administration of any public health institution is protected by the limits of the amounts provided by Act No. 104, supra. In other words, those health professionals who render their services in the aforementioned facilities shall receive the benefits of coverage and government representation in the case of claims for medical-hospital malpractice for up to the limits allowed by Act No, 104. The present Act hereby authorizes suing the government entity that owns of the medical-hospital facility for the acts of health professionals who, while providing medical services, are accused of malpractice. In those cases, said government entity shall answer for damages and losses for up to the limit allowed in Act No. 104. This Act places our health system in optimum conditions by providing the tools it needs to solidify the services it has been offering to the people of Puerto Rico. It also allows the public hospital institutions to compete in equal terms with private companies in the search for competent professionals. In consideration of the pressing interest of the Commonwealth to strengthen and broaden the medical services on the Island, this Act is hereby approved so that those health professionals who render services in hospitals owned by government entities may be covered by Act No. 104, supra, the Actions Against the Commonwealth of Puerto Rico Act.

BE IT ENACTED BY THE LEGISLATURE OF PUERTO RICO: Section 1.- Section 2 of Act No. 104 of June 29, 1955, as amended, is hereby amended to read as follows: Section 2.- Claims and suits against the Commonwealth-Authorization. Authorization is hereby granted to sue the Commonwealth of Puerto Rico before the Court of First Instance of Puerto Rico for the following causes of action: (a) Actions for damages and losses to a person or property for up to the sum of seventy-five thousand (75,000) dollars caused, whether by fault or negligence, by the action or omission of any officer, agent or employee of the Commonwealth, or of any other person acting in an official capacity within the scope of his/her duties, office or employment; or actions for damages and losses for alleged acts of medical-hospital malpractice to health professionals that work in the fields of obstetrics, orthopedics, general surgery and trauma exclusively in public health institutions of the Commonwealth, its dependencies, instrumentalities and/or municipalities, regardless of whether said institutions are being administered or operated by a private entity. When such an action or omission causes damages and losses to more than one person or when a single injured party is entitled to several causes of action, the compensation for all damages and losses caused by such action or omission shall not exceed the sum of one hundred and fifty thousand (150,000) dollars. If from the findings of the court it arises that the sum of the damages caused to each one of the persons exceeds one hundred and fifty thousand (150,000) dollars, the court shall

proceed to prorate said sum among the plaintiffs, taking as a basis the damages sustained by each. When an action is brought against the Commonwealth for damages to persons or property, the court shall direct, through the publication of edicts in a newspaper of general circulation, that all persons having a common interest be notified that they must appear together before the court on the date provided in the edicts for the purpose of distributing the amount of one hundred and fifty thousand (150,000) dollars among the plaintiffs as provided in this Act. (b) Actions to recover real or personal property or an interest therein, with or without compensation for damages sustained by said property or on account of revenues or profits therefrom and for the demarcation of rural property. (c) Civil actions in which the amount claimed does not exceed seventy-five thousand (75,000) dollars in principal and which are based on the Constitution or on any law of Puerto Rico, or on any regulation of any department or division of the Commonwealth, or on any contract, express or tacit with the Commonwealth. No authorization is granted to sue the Commonwealth of Puerto Rico, its agencies, instrumentalities and municipalities when, because of errors product of incorrect information obtained through a computer system, a contract is cancelled or actions are taken pursuant to the same, such as requiring documentation. To those ends, immunity shall be granted when errors attributable to mechanical malfunction or some atmospheric phenomenon, act of vandalism or computer virus (sequence of instructions

introduced in the memory of a computer so that when processed it makes for the anomalous functioning of the machine). The immunity herein granted does not exempt from liability for claims related to the cybernetic problem of the year 2000. Section 3.- This Act shall take effect immediately after its approval.

CERTIFICATION I hereby certify to the Secretary of State that the following Act No. 229 (H.B. 3593) (Conference) of the 7 th Session of the 14 th Legislature of Puerto Rico: AN ACT to amend Section 2 of Act No. 104 of June 29, 1955, as amended, in order to include within the limits mentioned in said Section, those health professionals that work in the fields of obstetrics, orthopedics, general surgery and trauma exclusively in public health institutions of the Commonwealth, its dependencies, instrumentalities and/or municipalities, regardless of whether said institutions are being administered or operated by a private entity, and for other purposes, has been translated from Spanish to English and that the English version is correct. In San Juan, Puerto Rico, today 29 th of September of 2005. Francisco J. Domenech Director