Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 larry.campbell@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Larry L. Campbell, Director Laura Kelly, Governor

February 14, 2019


The Honorable Gene Suellentrop, Chairperson
Senate Committee on Public Health and Welfare
Statehouse, Room 441-E
Topeka, Kansas 66612
Dear Senator Suellentrop:
SUBJECT: Fiscal Note for SB 120 by Senate Committee on Public Health and Welfare
In accordance with KSA 75-3715a, the following fiscal note concerning SB 120 is
respectfully submitted to your committee.
SB 120 would allow the Kansas Board of Healing Arts to provide a certificate of
authorization for a business entity to practice medicine. The bill would require a business entity
to apply for the certification biennially.
The Kansas Board of Healing Arts states that enactment of SB 120 could increase the
responsibilities and workload for licensure and administrative staff. Enactment of the bill would
also increase fee revenue. The Board has no way of predicting the number of business entities that
would apply for this certification, therefore, an estimate of additional costs and revenues cannot
be made.
Allowing business entities to practice medicine would require said entities to obtain
malpractice coverage through the Health Care Stabilization Fund. The agency states that this could
affect the fund either positively or negatively, depending on the level of assessments charged for
the coverage and the number of claims paid on behalf of the entities. Any fiscal effect associated
with SB 120 is not reflected in The FY 2020 Governor’s Budget Report.

Sincerely,

Larry L. Campbell
Director of the Budget
cc: Beth Visocsky, Board of Healing Arts
Clark Shultz, Health Care Stabilization Fund


Statutes affected:
As introduced: 40-3401, 39-923, 75-6102, 65-2803, 65-2836, 65-2877a