SENATE BILL REPORT

SHB 1392

BYHouse Committee on Health Care (originally sponsored by Representatives D. Sommers, Braddock, Beck, Day, Betrozoff, Moyer, Sanders, Silver and Ferguson)

Exempting type A continuing care retirement communities from certificate of need requirements.

House Committe on Health Care

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):February 22, 1988

Majority Report:  Do pass.

      Signed by Senators Deccio, Chairman; Johnson, Vice Chairman; Smith, West.

Senate Staff:Don Sloma (786-7414)

                  February 22, 1988

AS REPORTED BY COMMITTEE ON HEALTH CARE & CORRECTIONS, FEBRUARY 22, 1988

BACKGROUND:

For the purposes of cost containment and to assure access of the public to health resources, a certificate of need is required for the development of any new health facility or for any capital expenditure made by a health facility which substantially changes the services or which otherwise exceeds $1 million.

While nursing homes are considered health care facilities, "continuing care retirement communities" which may have nursing beds are not specifically included under the certificate of need program.

SUMMARY:

Continuing care retirement communities are specifically included under the state certificate of need program.  A continuing care retirement community is an entity which provides shelter and services and includes or sponsors health facilities or health services to its members, under contract, for the duration of the member's life.  The contract is conditioned upon the transfer of property, the payment of a fee or periodic charges by the member.

However, certain continuing care retirement communities are excluded from certificate of need review where they provide: 1) a restriction of services to members only; 2) a guarantee of services: 3) an assumption of costs of services; 4) evidence of operation since January 1, 1988 or otherwise having a valid certificate of need as a nursing home; 5) for holding DSHS harmless for costs; 6) a maximum ratio of one nursing home bed to four living units; and 7) a limitation on the total number of nursing home beds unless financially feasible.

Appropriation:    none

Revenue:    none

Fiscal Note:      available

Senate Committee - Testified: Representative Duane Sommers (for); Arlene Temple, Exeter House (for); Dan Rubin, SHCC (against)