FINAL BILL REPORT

                 SHB 1586

                         C 158 L 91

                     Synopsis As Enacted

Brief Description:  Providing criteria for exempting continuing care retirement communities.

Sponsor(s):  By House Committee on Health Care (originally sponsored by Representatives D. Sommers, Prentice, Moyer, Paris, Braddock and Franklin).

House Committee on Health Care

Senate Committee on Health & Long-Term Care

Background:  A continuing care retirement community is a retirement residence that provides shelter and health or personal care services by contract to a resident for the duration of the person's life or for a fixed term.

A continuing care retirement community is subject to the state Certificate of Need Law, which requires prior review and approval by the secretary of health for the development and construction of a retirement residence and any nursing facility connected with it.

However, a Certificate of Need from continuing care retirement communities is not required where they: 1) serve only contractual members; 2) provide a guaranteed range of services; 3) assume responsibility for costs of service; 4) have existed since January 1, 1988 in operating a nursing home; 5) relieve the Department of Social and  Health Services of any financial liability for services to members; 6) do not operate any nursing home beds in excess of one for every four living units; and 7) have not increased the number of nursing home beds after January 1, 1988 without a professional review of pricing and long term solvency that is fully disclosed to the members.

Summary:  A Certificate of Need is not required for the development and construction of the retirement residence of a continuing care retirement community.

However, a nursing facility connected with the community is reviewable, but an exemption is provided for continuing care retirement communities that: 1) serve only contractual members; 2) provide a guaranteed range of services; 3) assume responsibility for costs of service; 4) have existed since January 1, 1988 in operating a nursing home; 5) relieve the department of any financial liability for services to members; 6) do not operate any nursing home beds in excess of one for every four living units; and 7) have obtained a professional review of pricing and long term solvency.

To qualify for an exemption from Certificate of Need, a continuing care retirement community must document that it qualifies for an exemption.

Votes on Final Passage:

House  97   0

Senate 39   8    (Senate amended)

House  94   0    (House concurred)

Effective:  July 28, 1991