Topeka ? Gov. Kathleen Sebelius has created a new state office to address rising medical costs and access to affordable health care.

Sebelius told reporters Friday that the goal was collaboration among state agencies, including the Department on Aging and the Department of Social and Rehabilitation Services, that play a role in providing health care to Kansas residents.

“I think this office is a missing piece in state government operations,” Sebelius said.

She said $12 billion was spent in Kansas on health care annually, with $2 billion spent by the state. Until now, the governor said, no state agency or official has monitored how the state’s money was spent.

Leading the new Office of Health Planning and Finance will be Bob Day, former SRS director of medical policy, who will earn about $90,000, the same as he was paid at SRS.

The governor said Day’s office eventually could grow to four people and would also involve an advisory council of Cabinet secretaries, legislators, Insurance Commissioner Sandy Praeger and other interested parties.

Sebelius said the office would be financed with grants from the Kansas Health Foundation, the United Methodist Health Ministry Fund and the Sunflower Foundation, which has contributed $250,000 for fiscal 2004, which ends July 1. Sebelius said the organizations would be invited to have a seat on the council.

Sebelius plans to issue an executive order to create the office, which will become permanent unless the House and Senate pass resolutions disapproving her decision.

Sebelius said the council and Day would not set health care policy but would play a role in coordinating agency activities, such as assessing programs for childhood immunizations or to reduce adults living with high blood pressure and diabetes.

“I’ll be setting policy,” the governor said. “I think the goal is to make health care more affordable to Kansans.”

Sebelius said Day’s duties would include looking at all state contracts with insurance providers, such as those for prisons, state employees and services for the needy. While costs may not decrease, the governor believes better planning will help reduce the spikes in increased expenses, especially for small businesses.

Day said if agencies knew what the others were doing they could use funds more wisely and perhaps redirect state dollars within health care. He added that he spent some time during the summer working on health care issues, including improving the state’s buying power on prescription drugs.