FINAL BILL REPORT

HB 1951

                                  C 262 L 88

BYRepresentatives Nutley, Peery, Butterfield, Cooper, Ferguson, Lux, Sutherland, Vekich and D. Sommers 

Providing rate review exemption for certain hospitals.

House Committe on Health Care

Senate Committee on Health Care & Corrections

SYNOPSIS AS ENACTED

BACKGROUND:

State law requires that hospital rates, or discounts, be "... cost justified and do not result in any shifting of cost to other payers or purchasers...."  Hospital rates are subject to review and approval by the Washington State Hospital Commission.  Several hospitals in border areas of the state are in competition with hospitals in other states that are not subject to rate review.

SUMMARY:

Any hospital in Washington state is exempted from the Hospital Commission's rate review and approval process if it is located within 15 miles of one or more hospitals located in a jurisdiction that is not subject to rate review and approval, and hospitals not subject to review or approval have the capacity of absorbing 25 percent or more of the exempted Washington state hospital patients.

Exempted hospitals are required to submit pertinent information to the commission on a timely basis.

This exemption provision expires June 30, 1991.

VOTES ON FINAL PASSAGE:

      House 83  11

      Senate    41     7 (Senate amended)

      House 89   3 (House concurred)

EFFECTIVE:June 9, 1988