FINAL BILL REPORT

                 EHB 2735

                          C 50 L 96

                     Synopsis as Enacted

Brief Description:  Exempting from certificate of need review certain nursing facilities that undertake renovations.

Sponsors:  Representatives Dyer, D. Sommers, Sherstad and Scheuerman.

House Committee on Health Care

Senate Committee on Health & Long-Term Care

Background:  The certificate of need program is a cost containment program regulated by the Department of Health.  The purpose of the program is to ensure the construction and development of only those new health care facilities and services that promote access to high-quality, needed care at a reasonable cost.

A certificate of need is required prior to the commencement of construction or operation of new hospitals, nursing homes, home health and hospice agencies, kidney dialysis centers, and ambulatory surgical centers.  With regard to nursing homes specifically, a certificate of need is required for any increase in the number of licensed beds and any capital expenditure exceeding $1.2 million.

No certificate of need is required for nursing homes, however, for construction which involves physical plant facilities, including administrative and support facilities that are not used for the provision of health services.

Summary:  The exemption from certificate of need requirements for nursing homes is expanded to include renovation of dining, kitchen, laundry, and therapy areas at an existing facility by a licensee who has operated the facility for at least one year.  Only those changes that are needed to maintain state licensure are exempted.  Technical changes are made.

Votes on Final Passage:

House     98 0

Senate    47 0

Effective:  June 6, 1996