SEC. 1443. MULTI-STAKEHOLDER PRE-RULEMAKING INPUT INTO SELECTION OF QUALITY MEASURES.

Section- 1808 of the Social Security Act [42 U.S.C. 1395b-9] is amended by adding at the end the following new subsection:

'[d] Multi-stakeholder Pre-rulemaking Input Into Selection of Quality Measures-

'[1] LIST OF MEASURES- Not later than December 1 before each year [beginning with 2011], the Secretary shall make public a list of measures being considered for selection for quality measurement by the Secretary in rulemaking with respect to payment systems under this title beginning in the payment year beginning in such year and for payment systems beginning in the calendar year following such year, as the case may be.

'[2] CONSULTATION ON SELECTION OF ENDORSED QUALITY MEASURES- A consensus-based entity that has entered into a contract under section 1890 shall, as part of such contract, convene multi-stakeholder groups to provide recommendations on the selection of individual or composite quality measures, for use in reporting performance information to the public or for use in public health care programs.

'[3] MULTI-STAKEHOLDER INPUT- Not later than February 1 of each year [beginning with 2011], the consensus-based entity described in paragraph [2] shall transmit to the Secretary the recommendations of multi-stakeholder groups provided under paragraph [2]. Such recommendations shall be included in the transmissions the consensus-based entity makes to the Secretary under the contract provided for under section 1890.

'[4] REQUIREMENT FOR TRANSPARENCY IN PROCESS-

'[A] IN GENERAL- In convening multi-stakeholder groups under paragraph [2] with respect to the selection of quality measures, the consensus-based entity described in such paragraph shall provide for an open and transparent process for the activities conducted pursuant to such convening.

'[B] SELECTION OF ORGANIZATIONS PARTICIPATING IN MULTI-STAKEHOLDER GROUPS- The process under paragraph [2] shall ensure that the selection of representatives of multi-stakeholder groups includes provision for public nominations for, and the opportunity for public comment on, such selection.

'[5] USE OF INPUT- The respective proposed rule shall contain a summary of the recommendations made by the multi-stakeholder groups under paragraph [2], as well as other comments received regarding the proposed measures, and the extent to which such proposed rule follows such recommendations and the rationale for not following such recommendations.

'[6] MULTI-STAKEHOLDER GROUPS- For purposes of this subsection, the term 'multi-stakeholder groups' means, with respect to a quality measure, a voluntary collaborative of organizations representing persons interested in or affected by the use of such quality measure, such as the following:

'[A] Hospitals and other institutional providers.

'[B] Physicians.

'[C] Health care quality alliances.

'[D] Nurses and other health care practitioners.

'[E] Health plans.

'[F] Patient advocates and consumer groups.

'[G] Employers.

'[H] Public and private purchasers of health care items and services.

'[I] Labor organizations.

'[J] Relevant departments or agencies of the United States.

'[K] Biopharmaceutical companies and manufacturers of medical devices.

'[L] Licensing, credentialing, and accrediting bodies.

'[7] FUNDING-

'[A] IN GENERAL- The Secretary shall provide for the transfer, from the Federal Hospital Insurance Trust Fund under section 1817 and the Federal Supplementary Medical Insurance Trust Fund under section 1841 [in such proportion as the Secretary determines appropriate], of $1,000,000, to the Secretary for purposes of carrying out this subsection for each of the fiscal years 2010 through 2014.

'[B] AUTHORIZATION OF APPROPRIATIONS- For purposes of carrying out the provisions of this subsection, in addition to funds otherwise available, out of any funds in the Treasury not otherwise appropriated, there are appropriated to the Secretary of Health and Human Services $1,000,000 for each of the fiscal years 2010 through 2014.'.