Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Health Care

HB 1232

Brief Description:  Changing procedures relating to administrative costs of mental health services.

Sponsors:  Representatives Alexander, Cody, Campbell, McMorris, Mielke, DeBolt, Romero, Edmonds, Skinner, Kagi and Haigh.

Brief Summary of Bill

$The amount of total mental health expenditures that may be spent on administration cannot exceed twenty percent.

Hearing Date:  2/6/01

Staff:  Dave Knutson (786‑7146).

Background: 

The Mental Health Division within the Department of Social and Health Services is the state entity responsible for providing and contracting for the provision of mental health services in Washington.  The department's mental health duties include establishing a standardized auditing procedure which minimizes paperwork requirements on counties and licensed service providers.  There is currently no specific statutory definition of administrative expenditures and no upper limit on the amount of total contracted mental health expenditures that can be spent on administrative expenditures.

Summary of Bill: 

The Department of Social and Health Services is required to establish by contract, a definition of administrative expenses applicable to the counties and regional support networks.  Administrative expenses for contracted mental health services through counties and regional support networks cannot exceed 20 percent of total contracted mental health expenditures.  The single audit methodology used by the department will apply to counties, regional support networks, and licensed service providers.

Appropriation:  None.

Fiscal Note:  Not Requested.

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