FINAL BILL REPORT

SHB 1392

                                   C 20 L 88

BYHouse Committee on Health Care (originally sponsored by Representatives D. Sommers, Braddock, Beck, Day, Betrozoff, Moyer, Sanders, Silver and Ferguson)

Exempting type A continuing care retirement communities from certificate of need requirements.

House Committe on Health Care

Senate Committee on Health Care & Corrections

SYNOPSIS AS ENACTED

BACKGROUND:

To provide cost containment and to assure the public's access to health resources, a certificate of need is required to develop any new health facility or for a health facility to make any capital expenditure that substantially changes the services or that otherwise exceeds $1 million.

While nursing homes are considered health care facilities, "continuing care retirement communities," which may have nursing beds, are not specifically included under the certificate of need program.

SUMMARY:

Continuing care retirement communities are specifically included under the state certificate of need program.  A continuing care retirement community is an entity that provides shelter and services, including health facilities or health services, to its members, under contract, for the duration of the member's life.  The contract must be one that is conditioned upon the transfer of property, the payment of a fee or periodic charges by the member.

Continuing care retirement communities are excluded from certificate of need review if:  services are limited to members only; services are guaranteed; costs of services are contractually assumed by the facility; the facility has been in operation since January 1, 1988 or has a valid certificate of need as a nursing home; the facility has a hold-harmless agreement with the Department of Social and Health Services for the costs of care; the facility maintains a maximum ratio of one nursing home bed to four living units; and a limitation has been placed on the total number of nursing home beds unless a financial review has been made.

VOTES ON FINAL PASSAGE:

      House 92   0

      Senate    41     6

EFFECTIVE:June 9, 1988