SENATE BILL REPORT

                  EHB 2735

              As Reported By Senate Committee On:

          Health & Long-Term Care, February 23, 1996

Title:  An act relating to an exemption from certificate of need for the renovation of a nursing facility operated by an existing licensee who has operated the beds for at least one year.

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

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

Brief History:

Committee Activity:  Health & Long-Term Care:  2/22/96, 2/23/96 [DP].

SENATE COMMITTEE ON HEALTH & LONG-TERM CARE

Majority Report:  Do pass.

  Signed by Senators Quigley, Chair; Wojahn, Vice Chair; Deccio, Fairley, Franklin, Thibaudeau, Winsley and Wood.

Staff:  Rhoda Jones (786-7198)

Background:  The Certificate of Need (CON) program is a cost containment function in the Department of Health.  Its aim is to restrict the development of new health care facilities to those which are needed, able to provide high quality are, and financially sound.

Currently, a certificate of need is required before new construction begins on hospitals, nursing homes, home health and hospice agencies, kidney dialysis centers and ambulatory surgical centers and for some capital expenditures over $1.2 million on existing facilities.

Last year, changes in the CON law allowed nursing homes to do major renovations on their facilities without being subject to a certificate of need review, so long as the number of beds was not affected.  However, due to oversight in the drafting of this legislation, smaller remodelling projects, also over $1.2 million, remain subject to a review.

Summary of Bill:  The exemption of certificate of need is expanded to include the renovation of dining, kitchen, laundry, and therapy areas at an existing nursing home by a licensee who has operated the facility for at least one year.  Technical changes are made.

Appropriation:  None.

Fiscal Note:  Not requested.

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

Testimony For:  This change will not affect the overall nursing home bed supply and will allow nursing homes to improve services without incurring extra expenses through the CON process.

Testimony Against:  None.

Testified:  PRO:  Karen L. Tynes, WAHA; Peggy Brown, DSHS; Scott Sigmon, WHCA.