Business Entities

Health care providers subject to the Health Care Provider Insurance Availability Act (K.S.A. § 40-3401 et seq.) are required to obtain professional liability insurance and participate in capitalizing the Fund by paying premium surcharges.

Health care providers who organize a business entity for the purpose of rendering health care services are required to purchase professional liability insurance on behalf of the business entity and are required to pay a premium surcharge to the Fund for the statutory excess coverage.  It is the responsibility of the organizers of a health care business entity to purchase professional liability insurance and inform the Board of Governors of the existence of the business entity.

The definition of “health care provider” at K.S.A. § 40-3401(f) includes the following business entities (in addition to a medical care facility licensed by the Department of Health and Environment):

    1.  a Kansas Professional Association;             
    2.  a Kansas Limited Liability Company;                 
   3.  a Partnership; or 
   4.  a Kansas Not-For-Profit corporation.

The Fund staff attorney determines whether a business entity meets the statutory definition of a health care provider and, thus, qualifies for Fund participation.  In order to make this determination the following information should be submitted to the Fund for review:

Professional Corporations: A professional corporation incorporated by health care providers pursuant to K.S.A. 17-2709 and amendments thereto must submit to the Board: 
            (a) a copy of the Articles of Incorporation including a statement of professional 
                 purpose;    
            (b) a copy of the corporation’s Bylaws; and             
            (c) a copy of a certificate from the licensing agency indicating that each 
                 incorporator is duly licensed and that the proposed corporate name has 
                 been approved.

Limited Liability Companies: A limited liability company organized by health care providers to provide health care services in Kansas must submit to the Board:
            (a) a copy of the Articles of Organization including a statement of professional 
                 purpose;              
            (b) a copy of the company’s Bylaws; 
            (c) a copy of a certificate from the licensing agency indicating that each 
                 member is duly licensed and that the proposed company name has been 
                 approved; and
            (d) a list of the members.

Partnerships: A partnership formed by health care providers to provide health care services in Kansas must submit to the Board: 
            (a) a copy of the partnership agreement or contract; and 
            (b) a current list of the partners indicating their professional license numbers. 

Not-for-profit Corporations: A not-for-profit corporation incorporated to provide health care services in Kansas must submit to the Board:

(a) a copy of the Articles of Incorporation including a statement of professional purpose;
(b) a copy of the corporation’s Bylaws; and
(c) a written statement setting forth the names and titles of the individuals rendering professional services.  

                    If you have any questions contact Jennifer Sherber at 785-291-3408.