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216.267 Duties and responsibilities of Kentucky e-Health Network Board -- Permitted functions of the board -- Elements of fully implemented Kentucky e-Health Network.

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Page 1 of 6 216.267 Duties and responsibilities of Kentucky e-Health Network Board -- Permitted functions of the board -- Elements of fully implemented Kentucky e-<br>Health Network. (1) The duties and responsibilities of the board shall be to implement and oversee the operation of an electronic health network in this Commonwealth, to be known as <br>the Ke-HN. (2) The board shall: (a) Exercise all of the administrative functions of the board; <br>(b) Appoint an advisory group that shall meet at least quarterly for the purpose of collaborating with health-care providers and payors, computer technology <br>companies, telecommunication companies, and other affected entities to <br>ensure input into the implementation of the Ke-HN; (c) Review models for an electronic health network; <br>(d) Oversee the development of comparative business cases for the models reviewed and choose a model to be implemented in this Commonwealth. In <br>selecting a model for implementation, the board shall consider the following <br>elements: <br>1. Various models and configurations for Ke-HN, either as developed from <br>the board's research or as recommended by public and private experts. <br>Each model or configuration shall be capable of supporting <br>administrative and clinical functions listed in subsection (4) of this <br>section, including the capability to integrate with an electronic Medicaid <br>management information system, provide immediate health alerts to <br>health-care providers across the state, support health-care provider <br>education related to the identification and treatment of rare and unusual <br>diseases, serve as a registry of the existence and location of advance <br>directives related to health care or mental health treatment, and serve as <br>a registry of organ donations. The model chosen may be implemented in <br>phases, as determined by the board; 2. Projected costs of the network, indicating those which would be <br>allocated to state government, health-care providers, insurers, or others; 3. Options for financing the start-up, administrative, and maintenance <br>costs, projected returns on investments, a timetable for realizing those <br>returns, and any proposed subscription or transaction fees associated <br>with the Ke-HN; 4. Procedures intended to secure protected health information in <br>accordance with HIPAA; 5. Timetables for implementation of the Ke-HN, whether as a fully <br>established network, in phases, or through the use of a pilot project or <br>regional approach to the Ke-HN; 6. Suggested incentives to promote the use of Ke-HN by health care <br>providers and payors, and the Medicaid program; and Page 2 of 6 7. Incentives, including but not limited to tax credits, low-interest loans, <br>and grants, under Subchapters 22, 23, 24, 26, and 28 of KRS Chapter <br>154 for a company that develops or manufactures software necessary for <br>the development of the Ke-HN, if the company meets all the eligibility <br>requirements under the respective subchapter in KRS Chapter 154; (e) Receive comments from the advisory group created in paragraph (b) of this subsection; (f) Submit a description of the model chosen for implementation to the Legislative Research Commission for the opportunity for any comments; (g) If state funds are required for implementation of the model chosen, seek funding through the appropriations process; (h) Oversee the implementation of the model chosen subject to the appropriation of funds. Oversight shall include the following: <br>1. Developing any central interchange, including any central server and <br>software; 2. Developing the Ke-HN of providers and payors who participate in the <br>network, which shall be on a voluntary basis; 3. Making recommendations regarding the features and functions which <br>shall be included in the distributed components of the network; and 4. Performing an outcomes assessment of the benefits achieved by the <br>network; (i) Identify and adopt standards for all computer systems communicating with the Ke-HN, including but not limited to: <br>1. The HIPAA standards for electronic transactions as the federal <br>regulations become final, or more stringent standards for content and <br>networking as determined by the board; 2. Medical lexicon for administrative billing and clinical purposes; 3. Procedure and billing codes; and 4. Prevalent health care industry standards for software and networking <br>that ensure that applications work on all types of computer systems and <br>equipment; (j) Establish procedures to ensure that Ke-HN transactions are in compliance with HIPAA guidelines; (k) Facilitate the implementation of the federal HIPAA guidelines, and identify any additional variables specific to Kentucky that are required to be in <br>transactions within the HIPAA guidelines; (l) Oversee the operations of the Ke-HN, including but not limited to making recommendations for financing the central interchange for the network and <br>making recommendations to organizations about implementing the network in <br>their respective organizations; Page 3 of 6 (m) Oversee the development of the central interchange that supports communication between components of the Medicaid management <br>information system; (n) Implement educational efforts about the Ke-HN; <br>(o) Develop incentives for providers and payors to use the Ke-HN; <br>(p) Identify options for, adopt, and implement approaches to various aspects of the Ke-HN necessary for its creation and operation, including but not limited <br>to technology architecture, governance and oversight, development and <br>implementation plans, and other areas identified by the board relating to its <br>charge; (q) Facilitate the development of private and public partnerships to build the Ke-HN; (r) Assign priority in phasing in the network to geographical locations that are critical to homeland security and protection of the Commonwealth's energy <br>production; (s) Collaborate with federal agencies in the development and implementation of the Ke-HN as a demonstration model for the nation; (t) Collaborate with the Kentucky Health Care Infrastructure Authority created under KRS 216.261; (u) Assist with the securing of state, federal, or private funding for the Kentucky Health Care Infrastructure Authority created under KRS 216.261; (v) Stimulate the development of state and local population health information capacities; (w) Promulgate administrative regulations in accordance with KRS Chapter 13A necessary to carry out the responsibilities of the board; (x) Receive and dispense funds appropriated for its use by the General Assembly or may solicit, apply for, and receive any funds, property, or services from any <br>person, governmental agency, or organization to carry out its statutory <br>responsibilities; (y) Report to the Governor, secretary of the Cabinet for Health and Family Services, commissioner of the Department of Commercialization and <br>Innovation, Legislative Research Commission, Interim Joint Committee on <br>Health and Welfare, and Interim Joint Committee on Banking and Insurance <br>annually on the development of the Ke-HN and the impact on quality and cost <br>of health care; and (z) Collaborate with the Telehealth Board to link functions of the telehealth network to the Ke-HN, as determined by the Telehealth Board. (3) The board may: (a) Use any software program or expand any Medicaid management information system or electronic provider and payor network developed by the Medicaid <br>program to support electronic health transactions between payors, insurers, Page 4 of 6 health-care providers, and patients that are not Medicaid-related, unless <br>prohibited by federal law or regulation; (b) Contract, in accordance with KRS Chapter 45A, with an independent third party or a public or nonprofit e-health corporation for any service necessary to <br>carry out the responsibilities of the board subject to the appropriation of funds; (c) Award grants to health-care providers and payors to implement projects related to health informatics, with highest priority given to health-care <br>providers and payors that serve rural and inner-city areas of this <br>Commonwealth; (d) Enter into an agreement with the University of Kentucky or the University of Louisville to develop comparative business models or implement any phase of <br>the Ke-HN, using private or federal funds received by the university for the <br>purpose designated in the agreement; (e) Create a public or nonprofit e-health corporation to facilitate public-private collaboration in development and implementation of the Ke-HN. <br>1. A public or nonprofit e-health organization may receive and expend <br>funds appropriated by the General Assembly and may solicit, apply for, <br>and receive any funds, grants, contracts, contributions, property, or <br>services from any person, governmental agency, or other organization to <br>carry out the responsibilities given to it by the Ke-HN Board. 2. Funds appropriated to a public or nonprofit e-health corporation shall <br>not lapse at the end of a state fiscal year and shall be used solely for the <br>purposes for which the funds were appropriated. 3. A public or nonprofit e-health corporation created under this paragraph <br>shall: <br>a. Follow standard accounting practices; b. Submit to an annual financial audit by an independent auditor; c. Submit a quarterly report of receipts and expenditures to the <br>secretary of the Cabinet for Health and Family Services and the <br>Ke-HN Board no later than sixty (60) days after the end of a <br>quarter; and d. Submit an annual financial and progress report to the Governor, <br>the secretary of the Finance and Administration Cabinet, and the <br>Interim Joint Committees on Appropriations and Revenue and <br>Health and Welfare by September 30 following the end of each <br>state fiscal year. The annual report shall include a report of receipts <br>and expenditures, the financial audit, and a report on the status and <br>progress of the corporation's initiatives; and (f) Promulgate administrative regulations in accordance with KRS Chapter 13A to implement the provisions of paragraph (e) of this subsection. (4) In its fully implemented form, the Kentucky e-Health Network is envisioned to support or encourage the following types of electronic transactions or activities that <br>would be phased in over time: Page 5 of 6 (a) Automatic drug-drug interaction and allergy alerts; <br>(b) Automatic preventive medicine alerts; <br>(c) Electronic access to the results of laboratory, X-ray, or other diagnostic examinations; (d) Disease management; <br>(e) Disease surveillance and reporting; <br>(f) Educational offerings for health-care providers; <br>(g) Health alert system and other applications related to homeland security; <br>(h) Links to drug formularies and cost information; <br>(i) Links to evidence-based medical practice; <br>(j) Links to patient educational materials; <br>(k) Medical record information transfer to other providers with the patient's consent; (l) Physician order entry; <br>(m) Prescription drug tracking; <br>(n) Registries for vital statistics, cancer, case management, immunizations, and other public health registries; (o) Registry of the existence and location of advance directives related to health care and mental health treatment; (p) Registry of organ donations executed under KRS 311.1911 to 311.1959; <br>(q) Secured electronic consultations between providers and patients; <br>(r) A single-source insurance credentialing system for health care providers; and <br>(s) The following transactions covered by HIPAA: 1. Electronic health-care claims submission; 2. Electronic payment; 3. Coordination of benefits; 4. Health-care claim status; <br>5. Enrollment and disenrollment in a health plan; 6. Eligibility for a health plan; 7. Health plan premium payments; 8. Referral certification and authorization; 9. First report of injury; and 10. Health claims attachments. Effective: July 15, 2010 <br>History: Amended 2010 Ky. Acts ch. 161, sec. 29, effective July 15, 2010. -- Amended 2007 Ky. Acts ch. 126, sec. 5, effective June 26, 2007. -- Amended 2006 Ky. Acts <br>ch. 210, sec. 13, effective July 12, 2006; and ch. 150, sec. 1, effective July 12, 2006. <br>-- Created 2005 Ky. Acts ch. 30, sec. 4, effective March 8, 2005. Legislative Research Commission Note (6/20/2005). 2005 Ky. Acts chs. 11, 85, 95, 97, 98, 99, 123, and 181 instruct the Reviser of Statutes to correct statutory references to Page 6 of 6 agencies and officers whose names have been changed in 2005 legislation confirming <br>the reorganization of the executive branch. Such a correction has been made in this <br>section.