The Florida Senate

408.001  Florida Health Care Purchasing Cooperative.--

(1)  SHORT TITLE.--This section may be cited as the "Florida Health Care Purchasing Cooperative Act."

(2)  CORPORATION AUTHORIZATION, DUTIES, POWERS.--

(a)  There is authorized the "Florida Health Care Purchasing Cooperative," which shall pool the purchasing power for health care services of state and local governmental entities, service providers under contract with such governmental entities, and other entities identified by the cooperative as potential participants in pooled purchasing arrangements. The Florida Health Care Purchasing Cooperative is a nonprofit private corporation organized pursuant to chapter 617 and has all powers necessary to carry out the purposes and provisions of this act, including, but not limited to, the power to receive and accept grants, loans, or advances of funds from any public or private agency and to receive and accept, from any source, contributions of money, property, labor, or any other thing of value.

(b)  Members of the Florida Health Care Purchasing Cooperative are:

1.  All state governmental entities that purchase health care services for clients or for employees through health care coverage;

2.  Local governmental entities, including, but not limited to, counties, municipalities, school districts, and other special districts, that voluntarily become members;

3.  Service providers under contract with governmental entities, which providers may voluntarily become members when the cooperative determines it is appropriate; and

4.  Other entities identified as potential members by the cooperative, such as groups of small employers or part-time employees, which entities may voluntarily become members when the cooperative determines it is appropriate.

(c)  The Florida Health Care Purchasing Cooperative shall:

1.  Establish administrative and accounting procedures for the operation of the corporation.

2.  Secure staff necessary to properly administer the corporation.

3.  Develop and implement a plan to publicize the Florida Health Care Purchasing Cooperative, the eligibility requirements for membership, and the procedures for becoming members of the cooperative and to maintain public awareness of the cooperative and its services.

4.  Identify third-party payors and health care provider networks that serve members of the cooperative.

5.  Collect data on costs and utilization of health care services from members of the cooperative, health care providers that provide services to employees and clients of members of the cooperative, and third-party payors for members of the cooperative.

6.  Compare cost and utilization data collected pursuant to subparagraph 5. with data collected by the Agency for Health Care Administration.

7.  Establish criteria for evaluating health care provider networks and third-party payors, seeking advice from providers and third-party payors serving members of the cooperative.

8.  Evaluate health care provider networks and third-party payors.

9.  Inform members of the cooperative about the results of evaluations of health care provider networks and third-party payors.

(d)  The Florida Health Care Purchasing Cooperative may:

1.  Negotiate and enter into contracts on behalf of its members with health care provider networks and third-party payors for the delivery of health care services;

2.  Negotiate and enter into contracts on behalf of its members with insurance carriers, reinsurers, and third-party administrators for insurance, aggregate stop loss, specific stop loss, and administrative services; and

3.  In geographic areas where cost-effective health care provider networks that provide good quality services do not exist, assist members in developing health care provider networks and negotiate and contract directly with health care providers for the provision of health care services.

4.  Assess the impact of existing or proposed mandated or mandatorily offered health care benefits on members and their employees to determine if such benefits promote the health and well-being of employees through prevention of illness, early detection and treatment of illness, and reduced long-term health care costs.

(3)  BOARD OF DIRECTORS.--

(a)  The Florida Health Care Purchasing Cooperative shall operate subject to the supervision and approval of a board of directors.

(b)  The board of directors shall consist of:

1.  The Director of the Agency for Health Care Administration;

2.  The Deputy Director of the Division of State Health Purchasing of the Agency for Health Care Administration;

3.  The Assistant Secretary for Health Services of the Department of Corrections;

4.  Two persons who are responsible for purchasing health benefits for municipal employees and who are appointed by the Florida League of Cities;

5.  A person who is responsible for purchasing health care benefits for county employees or health care services for county clients and who is appointed by the Florida Association of Counties; and

6.  A person who is responsible for purchasing health care benefits for school district employees and who is appointed by the Florida Association of School Administrators.

The appointed members of the board of directors shall be appointed for 2 years and may be reappointed.

(c)  The board shall adopt bylaws for the corporation which shall contain provisions for the selection of directors to represent members of the cooperative following the initial appointments. The board of directors may increase the number of its directors to provide for representation by members of the cooperative.

(d)  Board members may be reimbursed from funds of the Florida Health Care Purchasing Cooperative, as prescribed by law, for actual and necessary expenses that they incur in performing their duties.

(e)  A member of the board of directors or an employee or agent of the board incurs no liability, and no cause of action may arise against a board member or any employee or agent of the board, for any action taken by the member, employee, or agent in performing his or her powers and duties under this act.

(4)  CONFIDENTIALITY.--

(a)  Patient medical records, patient insurance records, and portions of any other records obtained or generated by the cooperative which contain information that is patient-specific or that otherwise identifies a patient, either directly or indirectly, are confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

(b)  Portions of records obtained or generated by the cooperative pursuant to this section which contain client lists, rates or rating methodologies, prices, discount amounts or formulas, contract terms, pricing methodologies, business plans, marketing strategies, client and vendor negotiations, or trade secrets as defined in s. 688.002, are confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

History.--s. 94, ch. 91-282; s. 129, ch. 92-279; s. 55, ch. 92-326; s. 9, ch. 93-129; s. 19, ch. 93-260; s. 2, ch. 95-201; s. 247, ch. 96-406; s. 1016, ch. 97-103.