SENATE BILL REPORT

                                    HB 2314

             AS REPORTED BY COMMITTEE ON HEALTH & LONG-TERM CARE,

                               FEBRUARY 24, 1992

Brief Description:  Revising provisions for providing medical services.

SPONSORS: Representative Franklin; by request of Dept. of Social and Health Services

HOUSE COMMITTEE ON HEALTH CARE

SENATE COMMITTEE ON HEALTH & LONG‑TERM CARE

Majority Report:  Do pass. 

      Signed by Senators West, Chairman; L. Smith, Vice Chairman; M. Kreidler, Niemi, Sumner, and Wojahn.

Staff:  Scott Plack (786‑7409)

Hearing Dates: February 24, 1992

BACKGROUND:

The Department of Social and Health Services (DSHS) medical assistance program provides medical services to low-income and disabled persons with a broad scope of services, including: preventive and primary care; in- and out-patient services; dental care; drugs; medical equipment; and a variety of screening and testing services.  Presently it serves about 510,000 persons monthly, with a biennial budget of $2.2 billion.

Current statute (RCW 74.09.120) states that DSHS shall reimburse hospitals on a "day rate" or "ratio to charge of cost" basis.  These methods are outdated and no longer used.

Presently, DSHS purchases in-patient hospital services on a selective contract or a prospective diagnosis-related groupings basis, and outpatient hospital services on a percentage of charge basis.

SUMMARY:

Current language is deleted and replaced with wording that permits DSHS to purchase services on contract or established-rate basis.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

TESTIMONY FOR:

The statutory language is archaic and should be updated.

TESTIMONY AGAINST:  None

TESTIFIED:  Representative Franklin, prime sponsor; Jim Peterson, Asst. Secretary, Medical Assistance Admin, DSHS (pro)