SENATE BILL REPORT

SB 6121

BYSenators Deccio, Sellar, Johnson and Smith

Requiring information on medicare health care options.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):January 12, 1988

Senate Staff:Scott Plack (786-7409)

AS OF JANUARY 13, 1988

BACKGROUND:

Currently, only limited types of medical care facilities are eligible to receive Medicare reimbursement for facility overhead costs.  They include hospitals, ambulatory surgical centers, rural health clinics and comprehensive outpatient rehabilitation facilities.  Each of the eligible facilities have specific requirements for minimum personnel, equipment and space standards.

Some rural hospitals are considering restructuring the delivery of health care services.  The goal is to design a service mix appropriate to meet local health care needs in a cost-efficient manner.  The ability to receive Medicare reimbursement is a critical factor in any service restructuring decision since Medicare is a major payer of rural health care.  The solution for some of the hospitals may be to convert into one or more of the non-hospital facilities eligible for reimbursement.  Since the state does not license all the facilities eligible for Medicare reimbursement, rural hospitals may be unaware of these other options.

SUMMARY:

DSHS is directed to develop information on Medicare facility options eligible for reimbursement, including requirements and procedures for acquiring certification.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested on January 6, 1988