Z-1264.1          _______________________________________________

                                 SENATE BILL 6061

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By Senator West; by request of Dept. of Social and Health Services

Read first time 01/14/92.  Referred to Committee on Health & Long‑Term Care.

Revising provisions for providing medical services.

     AN ACT Relating to provision of medical services; and amending RCW 74.09.120.

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

     Sec. 1.  RCW 74.09.120 and 1989 c 372 s 15 are each amended to read as follows:

     The department shall purchase necessary physician and dentist services by contract or "fee for service."  ((The department shall purchase hospital care by contract or by all inclusive day rate, or at a reasonable cost based on a ratio of charges to cost.  Any hospital when requested by the department shall supply such information as necessary to justify its rate, charges or costs.  All additional services provided by the hospital shall be purchased at rates established by the department after consultation with the hospital.))  The department shall purchase nursing home care by contract.  The department shall establish regulations for reasonable nursing home accounting and reimbursement systems which shall provide that no payment shall be made to a nursing home which does not permit inspection by the department of social and health services of every part of its premises and an examination of all records, including financial records, methods of administration, general and special dietary programs, the disbursement of drugs and methods of supply, and any other records the department deems relevant to the establishment of such a system.

     ((All other services and supplies provided under the program shall be secured by contract.))

     The department may purchase care in institutions for the mentally retarded, also known as intermediate care facilities for the mentally retarded.  The department shall establish rules for reasonable accounting and reimbursement systems for such care.  Institutions for the mentally retarded include licensed nursing homes, public institutions, licensed boarding homes with fifteen beds or less, and hospital facilities certified as intermediate care facilities for the mentally retarded under the federal medicaid program to provide health, habilitative, or rehabilitative services and twenty-four hour supervision for mentally retarded individuals or persons with related conditions and includes in the program "active treatment" as federally defined.

     The department may purchase care in institutions for mental diseases by contract.  The department shall establish rules for reasonable accounting and reimbursement systems for such care.  Institutions for mental diseases are certified under the federal medicaid program and primarily engaged in providing diagnosis, treatment, or care to persons with mental diseases, including medical attention, nursing care, and related services.

The department may purchase all other services provided under this chapter by contract or at rates established by the department.