Requires (current law authorizes) health care entities to report specified information to State licensing boards and the Data Bank regarding any action that adversely affects the clinical privileges of a health care practitioner who is not a physician if the entity would be required to report such information if the practitioner were a physician.

Allows the Secretary to impose fines for violations of reporting requirements by health care entities.

Requires health care entities and other agencies that employ physicians or other licensed health care providers (currently, requires hospitals) to request from the Data Bank and the State licensing board reported information on licensed health care practitioners who apply to be on the medical staff or who apply for clinical privileges or employment.

Provides immunity from civil liability for health care entities that disclose information about employees pursuant to mandatory reporting requirements unless the employer knowingly disclosed false information or violated any legal right of the employee. Prohibits health care entities from retaliating against any employee who, in good faith, reports conduct that may be construed to violate a Federal or State law to a State authority, licensing authority, peer review organization, or employer.

Amends title XIX (Medicaid) of the Social Security Act to require States to implement a system to report criminal background information to the Data Bank.