630.407.  Administrative entities may be recognized, when — contracting with vendors — subcontracting — department to promulgate rules. — 1.  The department may recognize providers as administrative entities under the following circumstances:

  (1)  Vendors operated or funded pursuant to sections 205.975 to 205.990;

  (2)  Vendors operated or funded pursuant to sections 205.968 to 205.973;

  (3)  Providers of a consortium of treatment services to the clients of the division of comprehensive psychiatric services as an agent of the division in a service area, except that such providers may not exceed thirty-six in number; or

  (4)  Providers of targeted case management services to the clients of the division of developmental disabilities as an agent of the division in a defined region that has not established a board as set forth in sections 205.968 to 205.973.

  2.  Notwithstanding any other provision of law to the contrary, the department may contract directly with vendors recognized as administrative entities without competitive bids.

  3.  Notwithstanding any other provision of law to the contrary, the commissioner of administration shall delegate the authority to administrative entities which are state facilities to subcontract with other vendors in order to provide a full consortium of treatment services for the service area.

  4.  When state contracts allow, the department may authorize administrative entities to use state contracts for pharmaceuticals or other medical supplies for the purchase of these items.

  5.  A designation as an administrative entity does not entitle a provider to coverage under sections 105.711 to 105.726, the state legal expense fund, or other state statutory protections or requirements.

  6.  The department shall promulgate regulations within twelve months of August 28, 1990, regulating the manner in which they will contract and designate and revoke designations of providers under this section.  Such regulations shall not be required when the parties to such contracts are both governmental entities.