Adopts a new system for establishing nursing home payment rates beginning July 1, 2016.

Requires the department of social and health services to: (1) Do a comparative analysis of the facility-based payment rates calculated on July 1, 2015, using the payment methodology defined in chapter 74.46 RCW, to the facility-based rates in effect June 30, 2010;

(2) Institute minimum staffing standards for nursing homes; and

(3) Facilitate a work group process to propose modifications to the price-based nursing facility payment methodology outlined in section 4 of this act and the minimum staffing standards outlined in RCW 74.42.360.

Creates a separate nursing facility quality enhancement account.