SB 5724-S.E - DIGEST

(DIGEST AS ENACTED)

     Revises nursing home auditing and cost reimbursement provisions.

     Requires the legislative budget committee to complete a study of the nursing home reimbursement system by November 15, 1994.

     Repeals RCW 74.46.260 and 74.46.495.

VETO MESSAGE ON SB 5724-S

                   May 28, 1993

To the Honorable President and Members,

  The Senate of the State of Washington

Ladies and Gentlemen:

     I am returning herewith, without my approval as to section 20, Engrossed Substitute Senate Bill No. 5724, entitled:

"AN ACT Relating to nursing home auditing and reimbursement;"

     Section 20 of Engrossed Substitute Senate Bill No. 5724 directs the Department of Social and Health Services to provide a prospective rate enhancement of $50,000 per year to all nursing homes meeting four specific criteria.

     Because this rate enhancement will be included in the reimbursement statute, it will become part of the state plan which must be submitted to the federal government.  Since it has never been a part of the nursing home rate-setting mechanism, the enhancement jeopardizes federal matching funds and will ultimately be disallowed.

     Additionally, I believe Washington's nursing home reimbursement system adequately reimburses facilities for their allowable expenses, and this rate enhancement creates an inequitable situation.

     With the exception of section 20, Engrossed Substitute Senate Bill No. 5724 is approved.

                   Respectfully submitted,

                   Mike Lowry

                   Governor