Subject of Possible Rule Making: Adopting a new section in chapter 388-550 WAC, Hospital services; and amending WAC 388-550-3300 Hospital peer groups and cost caps, 388-550-4300 Hospitals and units exempt from the DRG payment method, 388-550-4600 Hospital selective contracting program, 388-550-4800 Hospital payment methods -- State-administered programs, and possible other sections in chapter 388-550 WAC.

     Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 74.04.050, 74.08.090.

     Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Due to the elimination of intergovernmental transfers (IGTs), a new WAC section is being created to allow the department to reimburse certain public hospitals through the "full cost" public hospital certified public expenditure (CPE) payment program. In addition, the department is updating applicable sections in chapter 388-550 WAC.

     Process for Developing New Rule: The department invites the interested public to review and provide input on the draft language of this rule. Draft material and information about how to participate may be obtained from the department representative listed below.

     Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Kathy Sayre, Rules Program Manager, P.O. Box 45533, Medical Assistance Administration, Olympia, WA 98504-45533 [98504-5533], phone (360) 725-1342, fax (360) 586-9727, TTY 1-800-848-5429, e-mail sayrek@dshs.wa.gov.

February 28, 2005

Andy Fernando, Manager

Rules and Policies Assistance Unit

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