This bill mandates the Secretary of Health and Human Services to establish regulations guaranteeing due process rights for physicians holding medical staff privileges at hospitals. These regulations will ensure physicians receive a fair hearing and appellate review through established medical staff mechanisms before any adverse action affecting their professional activity or staff privileges. The regulations must specifically prevent the denial of these hearings or reviews through third-party contracts and prohibit requiring physicians to waive these rights as a condition of employment. Furthermore, such hearings and reviews are to remain confidential and generally not reportable to entities like the National Practitioner Data Bank or future employers, unless there is an ongoing threat to patient safety or existing NPDB reporting requirements apply. The Secretary is required to issue these final regulations within 18 months of the bill's enactment.