BILL REQ. #:  S-4676.1 

READ FIRST TIME 02/05/10.   

     AN ACT Relating to the acquisition of nonprofit hospitals; and amending RCW 70.45.100 and 70.45.080.

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

Sec. 1   RCW 70.45.100 and 1997 c 332 s 10 are each amended to read as follows:
     The department shall require ((periodic)) annual reports from the nonprofit corporation or its successor nonprofit corporation or foundation and from the acquiring person or other parties to the acquisition to ensure compliance with commitments made. The department may subpoena information and documents and may conduct on-site compliance audits at the acquiring person's expense. The reports must continue for ten consecutive years after the completion of the sale.
     If the department receives information indicating that the acquiring person is not fulfilling commitments to the affected community under RCW 70.45.080, the department shall hold a hearing upon ten days' notice to the affected parties. If after the hearing the department determines that the ((information is true, it)) acquiring person is not fulfilling commitments to the affected community, the department is authorized to take one or more of the following actions as conditions of the hospital license: (1) Impose reasonable conditions on a license such as require corrective action within a specific period of time; (2) impose civil penalties of not more than five hundred dollars per day per violation; or (3) suspend, revoke, or refuse to renew a license. If the terms of corrective action dictated by the department are not adhered to by the acquiring person according to required timelines and conditions, the department may immediately revoke or suspend the hospital license issued to the acquiring person ((pursuant to the procedure established under RCW 70.41.130)), refer the matter to the attorney general for appropriate action, or both. The attorney general may seek a court order compelling the acquiring person to fulfill its commitments under RCW 70.45.080.

Sec. 2   RCW 70.45.080 and 1997 c 332 s 8 are each amended to read as follows:
     The department shall only approve an application if the acquisition in question will not detrimentally affect the continued existence of accessible, affordable health care that is responsive to the needs of the community in which the hospital to be acquired is located. ((To this end,)) The department shall consult with a qualified independent expert to determine the health impact of the acquisition in question. The health impact study will provide the department with health data regarding the impact of the sale and identify specific conditions that should be placed on a proposed sale to ensure that it provides the most benefit possible to the people of the impacted area. Any costs related to the consultation shall be at the expense of the acquiring person, in addition to the fees charged under RCW 70.45.030. The department shall not approve an application unless, at a minimum, it determines that:
     (1) Sufficient safeguards are included to assure the affected community continued access to affordable care, and that alternative sources of care are available in the community should the acquisition result in a reduction or elimination of particular health services;
     (2) The acquisition will not result in the revocation of hospital privileges;
     (3) Sufficient safeguards are included to maintain appropriate capacity for health science research and health care provider education;
     (4) The acquiring person and parties to the acquisition are committed to providing health care to the disadvantaged, the uninsured, and the underinsured and to providing benefits to promote improved health in the affected community. Activities and funding provided under RCW 70.45.070(8) may be considered in evaluating compliance with this commitment; and
     (5) Sufficient safeguards are included to avoid conflict of interest in patient referral.