65-4957. Same; cooperative agreements; application for certificate of public advantage; application fees; issuance of certificate of public advantage, when; evaluation of cooperative agreement; amendm
65-4957
65-4957. Same; cooperative agreements; application for certificate ofpublic advantage; application fees; issuance of certificate of publicadvantage, when; evaluation of cooperative agreement; amendment of approvedagreement.(a) A health care provider may negotiate and enter intocooperative agreements with other health care providers in the state if thelikely benefits resulting from the agreements outweigh any disadvantagesattributable to a reduction in competition that may result from the agreements.
(b) Parties to a cooperative agreement may apply to the secretary for acertificate of public advantage approving and governing that cooperativeagreement. The application shall include an executed copy of the cooperativeagreement and shall describe the nature and scope of the cooperation in theagreement and any consideration passing to any party under the agreement. Theapplication shall be accompanied by an application fee fixed by the secretarybyrules and regulations in an amount necessary to defray all or part of the costsof the agency in the determination of whether to grant or deny a certificate ofpublic advantage under thehealth care provider cooperation act.
(c) The secretary shall review the application in accordance with thestandards set forth in subsections (e) and (f) of this section, and shall holda public hearing in accordance with rules and regulations adopted by thesecretary. The secretary shall approve or deny the application within 90 daysof the date of filing of the application and that decision shall be in writingand set forth the basis for the decision.
(d) The secretary shall issue a certificate of public advantage for acooperative agreement if the secretary determines the applicants havedemonstrated thatthe benefits resulting from the agreement outweigh any disadvantagesattributable to a reduction in competition that may result from the agreement.
(e) In evaluating the potential benefits of a cooperative agreement, thesecretary shall consider whether one or more of the following benefits mayresult from the cooperative agreement:
(1) Enhancement of the quality of health care provided to Kansas citizens;
(2) preservation of health care facilities or providers, or both, ingeographical proximity to the communities traditionally served by thosefacilities or providers, or both;
(3) increased cost efficiency of services provided by the health careproviders involved;
(4) improvements in the utilization of health care resources and equipment;and
(5) avoidance of duplication of resources.
(f) The secretary's evaluation of any disadvantages attributable to areduction in competition likely to result from the agreement shall include, butnot be limited to, the following factors:
(1) The extent of any adverse impact on the ability of health maintenanceorganizations, preferred provider organizations, managed health care serviceagents or other health care payers to negotiate optimal payment and servicearrangements with hospitals, physicians, allied health care professionals orother health care providers;
(2) the extent of any reduction in competition among health care providersor other persons furnishing goods or services to, or in competition with,health care providers that may result directly or indirectly from thecooperative agreement;
(3) the extent of any adverse impact on patients in the quality,availability and cost of health care services; and
(4) the availability of arrangements that are less restrictive tocompetition and achieve the same benefits or a more favorable balance ofbenefits over disadvantages attributable to any reduction in competition whichmay result from the agreement.
(g) A cooperative agreement approved pursuant to this act may be amendedonly after the amendment is approved by the secretary in the same manner asrequired for initial approval of the cooperative agreement.
History: L. 1994, ch. 153, § 3; April 14.