Business Entities

Health care providers subject to the Health Care Provider Insurance Availability Act (K.S.A. § 40-3401 et seq.) are required to maintain a professional liability insurance policy and obtain excess professional liability coverage via the Health Care Stabilization Fund.

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:
1.  a Kansas professional corporation;
2.  a Kansas professional limited liability company;
3.  a partnership; or
4.  a Kansas not-for-profit corporation.

A 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, send an email message to hcsf@ks.gov and it will be referred to the appropriate staff member.