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                                                    HOUSE BILL NO. 197

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State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Brekke, Lewis, Braddock, Sanders, Sayan and Isaacson; by Department of Social and Health Services request

Read first time 1/23/85 and referred to Committee on Social & Health Services.

AN ACT Relating to adjusting nursing home prospective rates for energy retrofitting; and amending RCW 74.46.460.

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

        Sec. 1.  Section 46, chapter 177, Laws of 1980 as last amended by section 21, chapter 67, Laws of 1983 1st ex. sess. and RCW 74.46.460 are each amended to read as follows:

          (1) Each contractor's reimbursement rates will be determined prospectively at least once each calendar year, to be effective July 1st.

          (2) Rates may be adjusted as determined by the department to take into account variations of more than ten percent in the distribution of patient classifications or changes in patient characteristics from the prior reporting year, program changes, changes in staffing levels at a facility required by the department, economic trends and conditions, and/or administrative review provided by RCW 74.46.780 and shall be adjusted for any capitalized additions or replacements made as a condition for licensure or certification or to effect capital improvements for energy retrofittings, as defined by the department, which can reasonably be expected to generate an internal rate of return greater than or equal to the interest rate paid on the most recent Washington state bonds issued prior to the installation of the improvements.

          (3) Where the contractor participated in the provisions of prospective cost-related reimbursement in effect prior to July 1, 1983, such contractor's prospective rate effective July 1, 1983, will be determined utilizing the contractor's desk-reviewed allowable costs for calendar year 1982.

          (4) All prospective reimbursement rates for 1984 and thereafter shall be determined utilizing the prior year's desk-reviewed cost reports.