HF 884

1st Engrossment - 86th Legislature (2009 - 2010)

Posted on 02/09/2010 01:42 a.m.

A bill for an act
relating to health; creating a medical supplies and equipment purchasing alliance;
proposing coding for new law in Minnesota Statutes, chapter 16B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [16B.99] MEDICAL SUPPLIES AND EQUIPMENT PURCHASING
ALLIANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For the purposes of this section, the terms in this
subdivision have the meanings given them.
new text end

new text begin (b) "Commissioner" means the commissioner of administration.
new text end

new text begin (c) "Contractor" means an individual, business entity, or other private organization
that is awarded a contract by the commissioner to negotiate and administer the price
contracts for medical supplies and equipment under this section.
new text end

new text begin (d) "Manufacturer" means a manufacturer of medical supplies or equipment.
new text end

new text begin (e) "Purchaser" means governmental units as defined in section 471.59, nursing
facilities, assisted living facilities, medical facilities, community clinics, home health
agencies, state-operated facilities licensed by the commissioner of human services or
corrections, local or state correctional facilities, or public health facilities.
new text end

new text begin (f) "Seller" means a person, other than a manufacturer, who sells or distributes
medical supplies and equipment to purchasers or other sellers within the state.
new text end

new text begin Subd. 2. new text end

new text begin Establishment. new text end

new text begin (a) The commissioner, in consultation with the advisory
board, shall establish and administer a group purchasing alliance for medical supplies and
equipment. The alliance shall negotiate contracts for medical supplies and equipment
with manufacturers and sellers, and shall make the negotiated contract prices available
to purchasers. The commissioner may negotiate a price differential based on volume
purchasing, and may grant multiple awards.
new text end

new text begin (b) The commissioner, in consultation with the advisory board, shall select the
medical supplies and equipment for which price contracts are negotiated.
new text end

new text begin (c) To the extent feasible, the commissioner shall operate the alliance using the
administrative and contracting procedures of the Minnesota Multistate Governmental
Contracting Alliance for Pharmacy.
new text end

new text begin Subd. 3. new text end

new text begin Use of a contractor. new text end

new text begin The commissioner may contract with a contractor to
negotiate and administer the price contracts for medical supplies and equipment.
new text end

new text begin Subd. 4. new text end

new text begin Administrative costs. new text end

new text begin The commissioner may charge manufacturers and
sellers a fee to cover the commissioner's expenses in negotiating and administering the
price contracts entered into under subdivision 2. Fees collected by the commissioner
under this section must be deposited in the state treasury and credited to a special account.
Money in the account is appropriated to the commissioner to pay the costs of negotiating
and administering price contracts under this section.
new text end

new text begin Subd. 5. new text end

new text begin Manufacturer and seller requirement. new text end

new text begin A manufacturer or seller that
contracts with the commissioner shall make the negotiated contract price available to
all purchasers.
new text end

new text begin Subd. 6. new text end

new text begin Purchaser requirement. new text end

new text begin The commissioner may require a purchaser that
plans to purchase medical supplies and equipment at the negotiated contract price to
submit any information regarding medical supplies or equipment purchase projections the
commissioner determines necessary for contract price negotiations.
new text end

new text begin Subd. 7. new text end

new text begin Advisory board. new text end

new text begin (a) The commissioner shall convene an advisory board
of eight members. Four of the members must be representatives of state purchasing agents
and four of the members must have expertise in bulk purchasing and price negotiations.
new text end

new text begin (b) The advisory board shall be organized and administered under section 15.059.
new text end