1. (a) A preferred provider plan may not refuse to enter into an agreement with a hospital solely because the hospital has not obtained accreditation from an accreditation organization that:

   1. (1) establishes standards for the organization and operation of hospitals;
   2. (2) requires the hospital to undergo a survey process for a fee paid by the hospital; and
   3. (3) was organized and formed in 1951.

2. (b) This section does not prohibit a preferred provider plan from using performance indicators or quality standards that:

   1. (1) are developed by private organizations; and
   2. (2) do not rely upon a survey process for a fee charged to the hospital to evaluate performance.

As added by P.L.259-1995, SEC.2.