651.1151  Administrative, vendor, and management contracts.--

(1)  The department may require a provider to submit any contract for administrative, vendor, or management services if the department has information and belief that a provider has entered into a contract with an affiliate, an entity controlled by the provider, or an entity controlled by an affiliate of the provider, which has not been disclosed to the department or which contract requires the provider to pay a fee that is unreasonably high in relation to the service provided.

(2)  After review of the contract, the department may order the provider to cancel the contract in accordance with the terms of the contract and applicable law if it determines that the fees to be paid are so unreasonably high as compared with similar contracts entered into by other providers in similar circumstances that the contract is detrimental to the facility or its residents.

(3)  Any contract with an affiliate, an entity controlled by the provider, or an entity controlled by an affiliate of the provider for administrative, vendor, or management services entered into or renewed after October 1, 1991, shall contain a provision that the contract shall be canceled upon issuance of an order by the department pursuant to this section. A copy of the current management services contract, pursuant to this section, if any, must be on file in the marketing office or other accessible area to residents and the appropriate resident organizations.

(4)  Any action of the department under this section is subject to review pursuant to the procedures provided in chapter 120.