CERTIFICATION OF ENROLLMENT

                        HOUSE BILL 2314

                    Chapter 8, Laws of 1992

                        52nd Legislature

                      1992 Regular Session

       MEDICAL SERVICES--PURCHASE BY DEPARTMENT OF SOCIAL

            AND HEALTH SERVICES--REVISED PROVISIONS

                    EFFECTIVE DATE:  6/11/92

Passed by the House February 13, 1992   Yeas 96   Nays 0                   JOE KING Speaker of the        House of Representatives Passed by the Senate March 2, 1992   Yeas 43   Nays 3

CERTIFICATE I, Alan Thompson, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 2314 as passed by the House of Representatives and the Senate on the dates hereon set forth.

JOEL PRITCHARD President of the Senate

ALAN THOMPSON                                Chief Clerk

Approved March 20, 1992 Place Style On Codes above, and Style Off Codes below.

FILED                 March 20, 1992 - 9:08 a.m.

BOOTH GARDNER Governor of the State of Washington

Secretary of State                        State of Washington

                  _______________________________________________

                                  HOUSE BILL 2314

                  _______________________________________________

                     Passed Legislature - 1992 Regular Session

State of Washington              52nd Legislature             1992 Regular Session

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

Read first time 01/14/92.  Referred to Committee on Health Care.Revising provisions for providing medical services.

     AN ACT Relating to provision of medical services; and amending RCW 74.09.120.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

     Sec. 1.  RCW 74.09.120 and 1989 c 372 s 15 are each amended to read as follows:

     The department shall purchase necessary physician and dentist services by contract or "fee for service."  ((The department shall purchase hospital care by contract or by all inclusive day rate, or at a reasonable cost based on a ratio of charges to cost.  Any hospital when requested by the department shall supply such information as necessary to justify its rate, charges or costs.  All additional services provided by the hospital shall be purchased at rates established by the department after consultation with the hospital.))  The department shall purchase nursing home care by contract.  The department shall establish regulations for reasonable nursing home accounting and reimbursement systems which shall provide that no payment shall be made to a nursing home which does not permit inspection by the department of social and health services of every part of its premises and an examination of all records, including financial records, methods of administration, general and special dietary programs, the disbursement of drugs and methods of supply, and any other records the department deems relevant to the establishment of such a system.

     ((All other services and supplies provided under the program shall be secured by contract.))

     The department may purchase care in institutions for the mentally retarded, also known as intermediate care facilities for the mentally retarded.  The department shall establish rules for reasonable accounting and reimbursement systems for such care.  Institutions for the mentally retarded include licensed nursing homes, public institutions, licensed boarding homes with fifteen beds or less, and hospital facilities certified as intermediate care facilities for the mentally retarded under the federal medicaid program to provide health, habilitative, or rehabilitative services and twenty-four hour supervision for mentally retarded individuals or persons with related conditions and includes in the program "active treatment" as federally defined.

     The department may purchase care in institutions for mental diseases by contract.  The department shall establish rules for reasonable accounting and reimbursement systems for such care.  Institutions for mental diseases are certified under the federal medicaid program and primarily engaged in providing diagnosis, treatment, or care to persons with mental diseases, including medical attention, nursing care, and related services.

The department may purchase all other services provided under this chapter by contract or at rates established by the department.

     Passed the House February 13, 1992.

     Passed the Senate March 2, 1992.

Approved by the Governor March 20, 1992.

     Filed in Office of Secretary of State March 20, 1992.