Authorizes the Secretary of HHS to award 5-year demonstration grants to states for the development, implementation, and evaluation of alternatives to current tort litigation for resolving disputes over injuries allegedly caused by health care providers or health care organizations. Specifies an annual report and an evaluation to begin no later than 18 months following the date of implementation. Calls for independent reviews from MedPAC and MACPAC of the alternatives to current tort litigation that are implemented under such grants, and requires reports from both Commissions to this effect by
December 31, 2016. Authorizes to be appropriated (but does not allocate funds) $50 million for the 5-fiscal year period beginning with FY 2011, with an option to provide up to $500,000 of that amount in the form of initial planning grants.