States that the department will accept applications to serve as a Medicaid ACO for participation in the demonstration if the applicant meets certain requirements and shall deny applicants that do not meet the requirements, including: it has been formed as a nonprofit corporation, specifications for the applicants governing board, it has support of its application by certain parties, the applicant has a process for receipt of gainsharing payments, has a process for engaging members, has committed to become accountabel for helath outcomes, quality, cost and access to care for Medicaid recipients, and has committed to ensuring use of electronic prescribing and medical records. Note: This statute is effective Oct. 17, 2011 and Expires three years after adoption of regulations.