HOUSE BILL REPORT

                      HB 1586

                     As Reported By House Committee on:

                                Health Care

Title:  An act relating to continuing care retirement communities.

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

Sponsor(s):  Representatives D. Sommers, Prentice, Moyer, Paris, Braddock and Franklin.

Brief History:

   Reported by House Committee on:

Health Care, February 27, 1991, DPS.

HOUSE COMMITTEE ON

HEALTH CARE

Majority Report: That Substitute House Bill No. 1586 be substituted therefor, and the substitute bill do pass.  Signed by 11 members:  Representatives Braddock, Chair; Day, Vice Chair; Moyer, Ranking Minority Member; Casada, Assistant Ranking Minority Member; Cantwell; Edmondson; Franklin; Morris; Paris; Prentice; and Sprenkle.

Staff:  John Welsh (786-7133).

Background:  A continuing care retirement community is included within the definition of a health facility and, as such, prior review and approval is required under the certificate of need law for the construction and development of the retirement home portion, as well as any nursing home facilities.

However, continuing care retirement communities are exempt 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 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 of Substitute Bill:  Continuing care retirement communities no longer require a certificate of need review.

The nursing home portion is still reviewable however, but exemption is provided for continuing care retirement communities that: 1) serve only contractual members; 2) provide a guaranteed range of services; 3) assumes responsibility for costs of service; 4) has existed since January 1, 1988 operating a nursing home; 5) relieves the department of any financial liability for services to members; 6) does not operate any nursing home beds in excess if one for every four living units; and 7) has obtained a professional review of pricing and long term solvency.

In order to qualify for an exemption, a continuing care retirement community must apply for exemption documenting that it qualifies for an exemption.

Substitute Bill Compared to Original Bill:  Three technical changes are made to the wording.

Fiscal Note:  Available.

Effective Date of Substitute Bill:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  Review of continuing care retirement communities, which are essentially retirement homes, should not be reviewable under the state Certificate of Need law, because they have no effect on the costs of health care.  The purpose of this law is to contain health care costs by preventing the duplication of major health facilities and services.

Testimony Against:  None.

Witnesses:  Cathy Wiggins, Department of Social & Health Services (supports substitute); Sherman Cox, Department of Health (pro); and Karen Tynes, Washington Association of Homes for the Aging (pro).