The Physician and Patient Safety Act requires the Secretary of Health and Human Services to establish federal regulations protecting physicians' due process rights when hospitals consider terminating or restricting their medical staff privileges. The bill ensures physicians receive a fair hearing and the ability to appeal before losing their privileges, and prohibits hospitals from denying these rights through third-party contracts or requiring physicians to waive them as a condition of employment. The regulations must also keep these hearings confidential and prevent reporting to the National Practitioner Data Bank unless there is an ongoing threat to patient safety or other legally required reporting. The legislation affects physicians working at hospitals across the country and the hospitals themselves, which must comply with the new procedural requirements. The Secretary must issue final regulations no later than 18 months after the bill becomes law.