This Act may be cited as the Physician and Patient Safety Act.

(a) In general The Secretary of Health and Human Services shall issue final regulations to provide that physicians who have been granted medical staff privileges at a hospital have a fair hearing and appellate review through appropriate medical staff mechanisms before any termination, restriction, or reduction of the professional activity of such physicians or staff privileges of such physicians at such hospital. (b) Requirements of regulations The regulations described in subsection (a) shall provide that— (1) a hearing or appellate review may not be denied through a third-party contract; (2) a physician shall not be requested or required to waive their rights to such a hearing or appellate review as a condition of employment, either with the hospital or with a third-party contractor; and (3) any such hearing or appellate review shall be confidential and not reportable to any entity, including the National Practitioner Data Bank or future workplaces or employers, unless there is an ongoing threat to patient safety, or as otherwise required under the reporting requirements for hospitals established by the National Practitioner Data Bank. (c) Effective date The final regulations promulgated under subsection (a) shall take effect not later than 18 months after the date of enactment of this Act.