HOUSE BILL REPORT

HB 1807

BYRepresentatives Braddock, Grimm, Sanders and Winsley

Repealing provisions for nursing home auditing and cost reimbursement and requiring a study of the problem.

House Committe on Health Care

Majority Report:  Do pass.  (9)

      Signed by Representatives Braddock, Chair; Bristow, Brooks, Bumgarner, Cantwell, Lux, D. Sommers, Sprenkle and Vekich.

Minority Report:  Do not pass.  (1)

      Signed by Representative Lewis.

House Staff:Antonio Sanchez (786-7383)

AS REPORTED BY COMMITTEE ON HEALTH CARE FEBRUARY 4, 1988

BACKGROUND:

Since 1980 the state has implemented a cost reimbursement system for nursing homes.  This system sets the reimbursement rates prospectively every July 1 and represents the maximum level of reimbursement for each cost center for each patient day. Reimbursement rates are determined utilizing the previous year's rates and the previous year's cost report data in each of the following four cost centers: nursing services, food, administration and operations, and property.  In addition to a reimbursement rate for each cost center, nursing homes receive a rate to provide for a return on investment of 11 percent.

SUMMARY:

This bill repeals chapter 74.46 RCW, effective June 30, 1989.  In addition, it directs the Department of Social and Health Services to develop a plan for a new nursing home reimbursement system that will conform with all federal requirements and will not cost more than the previous system.

Fiscal Note:      Requested January 28, 1988.

House Committee ‑ Testified For:    Representative Dennis Braddock, sponsor; Mike Wills, DSHS; Evan Iverson, Senior Citizens Lobby.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    It will allow the state to develop a reimbursement system that reduces the susceptibility for litigation.

House Committee - Testimony Against:      None Presented.