430.707  Contracts.--

(1)  The department, in consultation with the agency, shall select and contract with managed care organizations to provide long-term care within community diversion pilot project areas.

(2)  The department, in consultation with the agency, may contract with entities which have submitted an application as a community nursing home diversion project as of July 1, 1998, to provide benefits pursuant to the "Program of All-inclusive Care for the Elderly" as established in Pub. L. No. 105-33. For the purposes of this community nursing home diversion project, such entities shall be exempt from the requirements of chapter 641, if the entity is a private, nonprofit, superior-rated nursing home with at least 50 percent of its residents eligible for Medicaid.