HOUSE BILL REPORT

HB 970

BYRepresentatives Sayan, Taylor, Cole, Padden, Baugher, D. Sommers, Rayburn, Rust, Vekich, Schoon, Barnes, Fisch and Jesernig

Providing a reimbursement formula for institutions for the mentally retarded.

House Committe on Ways & Means/Appropriations

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (20)

     Signed by Representatives Allen, Belcher, Brekke, Bristow, Ebersole, Fuhrman, Grant, Grimm, Hine, Holland, McLean, McMullen, Nealey, Niemi, Peery, Sayan, Silver S. Sommers, Sprenkle and B. Williams.

House Staff:Dave Knutson (786-7146)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/APPROPRIATIONS

MARCH 9, 1987

BACKGROUND:

The Department of Social and Health Services contracts with some nursing homes to provide care and treatment for persons with developmental disabilities.  The department established an accounting and reimbursement system for these nursing homes which differs from the method used for nursing homes which care for the elderly.

SUMMARY:

SUBSTITUTE BILL:  The Department of Social and Health Services is required to reimburse nursing homes caring for the developmentally disabled in the same manner as other nursing homes for the property and return-on-investment portion of their reimbursement formula.  Nursing homes affected by this legislation would have their variable return on investment set at 2 percent.  Unaffected nursing homes have their variable return determined by a formula which provides a greater return for lower per diem costs and a lesser return for higher per diem costs.  Facilities which are leased on January 1, 1987 will continue to be reimbursed for their lease costs for the remainder of the lease.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Leased facilities are allowed to continue their current reimbursement for the remainder of the lease.

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Allen Dire, United Cerebral Palsy of Washington; and Steve Marg, Washington Health Care Association.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Nursing homes serving the developmentally disabled should be reimbursed for property and return on investment the same as nursing homes serving the elderly.

House Committee - Testimony Against: None Presented.