H-4467.1          _______________________________________________

 

                            SUBSTITUTE HOUSE BILL 2341

                  _______________________________________________

 

State of Washington              52nd Legislature             1992 Regular Session

 

By House Committee on Health Care (originally sponsored by Representatives Moyer, Braddock, Paris, Franklin, Hochstatter, Morris, Forner, Cantwell, Rasmussen, Hargrove, Padden, Wang, Winsley, Brough, Van Luven, Nealey, Chandler, Roland, D. Sommers, Mitchell, Bowman, Wynne, Spanel, May, Carlson, P. Johnson and Sprenkle)

 

Read first time 02/03/92.  Providing for disclosure of the cost of hospital health care services.


     AN ACT Relating to hospital charges to health care providers who order them; adding a new section to chapter 70.41 RCW; adding a new section to chapter 71.12 RCW; creating new sections; and providing an effective date.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     NEW SECTION.  Sec. 1.  A new section is added to chapter 70.41 RCW to read as follows:

     (1) The legislature finds that the spiraling costs of health care continue to surmount efforts to contain them, increasing at approximately twice the inflationary rate.  The causes of this phenomenon are complex.  By making physicians and other health care providers with hospital admitting privileges more aware of the cost consequences of health care services for consumers, these providers may be inclined to exercise more restraint in providing only the most relevant and cost-beneficial hospital services, with a potential for reducing the utilization of those services.  The requirement of the hospital to inform physicians and other health care providers of the charges of the health care services that they order may have a positive effect on containing health costs.  Further, the option of the physician or other health care provider to inform the patient of these charges may strengthen the necessary dialogue in the provider-patient relationship that tends to be diminished by intervening third-party payors.

     (2) The chief executive officer of a hospital licensed under this chapter and the superintendent of a state hospital shall establish and maintain a procedure for disclosing to physicians and other health care providers with admitting privileges the charges of all in-house health care services to be ordered for their patients.  These charges shall be posted on the patient's chart and shall include total charges to date and an itemization of charges for the previous day.  The physician or other health care provider may inform the patient of these charges.

 

     NEW SECTION.  Sec. 2.  A new section is added to chapter 71.12 RCW to read as follows:

     (1) The legislature finds that the spiraling costs of health care continue to surmount efforts to contain them, increasing at approximately twice the inflationary rate.  The causes of this phenomenon are complex.  By making physicians and other health care providers with hospital admitting privileges more aware of the cost consequences of health care services for consumers, these providers may be inclined to exercise more restraint in providing only the most relevant and cost-beneficial hospital services, with a potential for reducing the utilization of those services.  The requirement of the hospital to inform physicians and other health care providers of the charges of the health care services that they order may have a positive effect on containing health costs.  Further, the option of the physician or other health care provider to inform the patient of these charges may strengthen the necessary dialogue in the provider-patient relationship that tends to be diminished by intervening third-party payors.

     (2) The chief executive officer of a hospital licensed under this chapter and the superintendent of a state hospital shall establish and maintain a procedure for disclosing to physicians and other health care providers with admitting privileges the charges of all in-house health care services to be ordered for their patients.  These charges shall be posted on the patient's chart and shall include total charges to date and an itemization of charges for the previous day.  The physician or other health care provider may inform the patient of these charges.

 

     NEW SECTION.  Sec. 3.      The Washington state hospital association, in cooperation with the Washington state medical association, Washington state nurses association, and other appropriate interested parties, and in consultation with the department of health, is requested to develop a protocol that establishes a standardized system of disclosure of charges of hospital-based services for the purposes of this act; that promotes dialogue between hospitals, physicians, nurses, and other health care providers for encouraging a better cost consciousness regarding the services, procedures, medications and supplies which are ordered for hospital in-patients; that invites more cost-benefit comparisons of appropriate alternatives; and that minimizes the costs of instituting this standardized information system by the hospitals in this state.

 

     NEW SECTION.  Sec. 4.      The department of health shall report to the legislature by December 31, 1992, on the status of the development of the protocol developed pursuant to section 3 of this act and its implementation by hospitals, with recommendations on any necessary revisions to this act (chapter ..., Laws of 1992), including its continued necessity and the appropriateness of its repeal.

 

     NEW SECTION.  Sec. 5.      Sections 1 and 2 of this act shall take effect July 1, 1993.