FINAL BILL REPORT

                     SHB 1586

                                 C 158 L 91

                            Synopsis As Enacted

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

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