Provides that home health agencies may enter into cooperative agreements to carry out the following activities: (1) To form and operate, either directly or indirectly, one or more networks of home health agencies, hospitals, skilled nursing facilities, physicians, and other health care providers and to arrange for the provision of health care services through such networks. (2) To contract, either directly or through such networks, with the office of the secretary of family and social services, or the office's contractors to provide: (A) services to Medicaid beneficiaries; and (B) health care services in an efficient and cost effective manner on a prepaid, capitation, or other reimbursement basis. (3) To undertake other managed health care activities. Provides that a home health agency may authorize an association, corporation, or other person to undertake or effectuate any of these activities. Requires the secretary of family and social services to oversee and supervise these activities.