January 12, 2005
Governor’s Message
Executive Reorganization Order No. 33
By Governor Kathleen Sebelius
As part of the HealthyKansas initiative to contain costs
and reform the health care system, and in my continuing
effort to streamline state government and better serve
Kansas, I order the reorganization of the state’s
major health care programs into a new business division
within the Department of Administration called the Division
of Health Policy and Finance.
The purpose of the reorganization is to align state health
care purchasing and data analysis to maximize over $1.6
billion of the state’s purchasing power; coordinate
health planning among state agencies; reduce duplication
and maximize administrative efficiencies by streamlining
currently uncoordinated health care purchasing programs;
and to develop a broader state health care infrastructure
that continues to be efficient and responsive to consumers
and business partners.
This major reorganization clearly demonstrates our continued
commitment to streamlining government and our determination
to contain runaway health care costs and reform the system.
The reorganization will result in the coordination of
the state’s health care purchasing and planning
under the Division of Health Policy and Finance. Medical
services including Medicaid, MediKan, and HealthWave will
be transferred from the Department of Social and Rehabilitation
Services to the Division of Health Policy and Finance.
The State Employee Health Plan, already located in the
Department of Administration, will also transfer to the
Division of Health Policy and Finance. The reorganization
also includes a transfer of the administration of the
Health Care Data Governing Board from the Kansas Department
of Health and Environment to the Health Care Authority.
The Department of Social and Rehabilitation Services
will be renamed the Department of Human Services to more
accurately reflect its focus. Programs remaining with
the Department of Human Services include economic and
employment support, child support enforcement, vocational
rehabilitation, child welfare, mental health, addiction
and community supports and services to persons with physical
and developmental disabilities.
The state of Kansas is one of the largest purchasers
of health care services in the state, and can play a major
role in reforming the health care system. Coordinating
state health care purchasing under one administrative
structure in the Department of Administration will harness
the state’s approximately $1.6 billion in purchasing
power to push for health care system reforms and ensure
the HealthyKansas initiative is coordinated and sustained.