SENATE BILL REPORT

SHB 2229

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Amended Bill

Exempts licensed health care service contractors that are organized as nonprofit integrated care delivery systems from provisions that prohibit corporations from practicing dentistry or from soliciting dental patronage for dentists employed by a corporation.

Majority Report: Do pass as amended.

Signed by Senators Cleveland, Chair; Kuderer, Vice Chair; Rivers, Ranking Member; Bailey, Becker, Conway, Fain, Keiser, Mullet and Van De Wege.

Background: Only individuals licensed by the Dental Quality Assurance Commission (DQAC) may practice dentistry in the state. Corporations are prohibited from practicing dentistry or soliciting dental patronage for dentists employed by a corporation. However, a person or entity not licensed by DQAC may:

own or lease any assets used by a dental practice, including real property, furnishings, equipment, instruments, materials, supplies, and inventory, excluding dental patient records;

employ or contract for the services of personnel other than licensed dentists, including licensed dental hygienists, licensed expanded function dental auxiliaries, certified dental anesthesia assistants, and registered dental assistants;

provide business support and management services to a dental practice, including as the sole provider of the services; and
receive fees related to ownership or leasehold of assets, employment of personnel, and business support and management services provided to a dental practice, calculated as agreed to by the dental practice owner.

Summary of Amended Bill: The prohibition on the corporate practice of dentistry and solicitation of dental patronage for dentists employed by a corporation does not apply to an arrangement for care delivery between a licensed health service contractor organized as a nonprofit integrated care delivery system and a health care provider, provided that the arrangement between the parties meets:

the federal personal services and management safe harbor requirements; and
either the federal managed care safe harbor requirements or the federal space rental and equipment rental safe harbor requirements.

EFFECT OF HEALTH & LONG TERM CARE COMMITTEE AMENDMENT(S):

Clarifies that a health care service contractor organized as a nonprofit integrated care delivery system may contract for the services of licensed dentists, and employ or contract for the services of other dental professionals, if certain requirements are met.
Provides that health carriers are not prohibited from entering into provider contracts with dentists.

Staff Summary of Public Testimony on Substitute House Bill: The committee recommended a different version of the bill than what was heard. PRO: A bill on the corporate practice of dentistry passed last year; however, it did not consider the impacts on Kaiser, which has a long standing integrated dental practice. During the interim stakeholders worked together to come to an agreement that will ensure that Kaiser's integrated dental practice can continue while also safeguarding patients.