SENATE BILL REPORT

SB 6124

BYSenators Deccio, Johnson and Smith

Providing technical and financial assistance to assist in the delivery of rural health care systems.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):January 12, 1988; January 27, 1988

Majority Report:  That Substitute Senate Bill No. 6124 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Deccio, Chairman; Johnson, Vice Chairman; Kreidler, Niemi, Smith, Wojahn.

Senate Staff:Scott Plack (786-7409)

                  January 28, 1988

AS REPORTED BY COMMITTEE ON HEALTH CARE & CORRECTIONS, JANUARY 27, 1988

BACKGROUND:

State government provides a variety of technical and financial assistance programs to local communities.  Some of these services address community, economic and business development needs.  The agencies work with distressed economies to revive local industry and encourage the development of new small businesses.  Many of the same problems associated with reviving distressed local businesses apply to the rural health care industry as well.

While some of these state agencies do occasionally work with rural health care providers there is no coordinated effort to offer these services.

SUMMARY:

The Departments of Community Development, Trade and Economic Development and Employment Security are directed to address the viability of the health care industry as an important part of the rural economy.  The technical and financial assistance programs offered by these agencies are to be used to assist rural communities improve the delivery of health care.

DSHS is to consult with the three other agencies to coordinate the delivery of technical and assistance activities authorized by this act.

The State Health Coordinating Council (SHCC) is to serve as a clearinghouse of information on the availability of technical and financial assistance programs offered by the three agencies.

EFFECT OF PROPOSED SUBSTITUTE:

 Additional Background:  Demographic, economic, and financial changes occurring within the health care industry and within rural communities greatly affect the viability of all rural health care providers.  The problems faced by rural health care providers include erratic fluctuations or general decline in rural economies, the aging rural population, older physical plants, and the lack of health care professionals.

Rural health care providers ensure access to and the availability of preventative, primary, maintenance and emergency care services to rural residents and tourists populations in rural areas.

Current government regulations and standards for health care facilities are often inappropriate to rural settings and create barriers for the delivery of appropriate, innovative, efficient, and cost effective health care services in rural areas.

Rural communities need to consider restructuring the delivery of health care services to insure the continued availability and accessibility of appropriate community-based care.

Three areas of state assistance are needed to help rural communities respond to these changes.  These are technical assistance, easing regulatory restrictions and enhancing the ability of rural communities to match services with health care needs.  In addition, better coordination among regional and local health service authorities can ensure that needed health care services in rural areas are identified and met cost efficiently.

Summary:  The Washington Rural Health Commission is created to develop legislative recommendations on current rural health issues.  Legislative and public members are designated.  Legislative members include the Chairs and ranking minority members of the Senate and House Health Care Committees. 

The Commission is directed to (1) examine issues related to rural health care, (2) review existing statutes and regulations governing operation of health facilities, (3) examine models of rural health delivery developed in other states to identify innovative approaches, and (4) establish proposed standards for an alternative rural health facility licensure model.

A report with the Commission recommendations is to be submitted to the Legislature by December 1, 1988. The Commission expires on December 31, 1988.

The Departments of Community Development, Trade and Economic Development and Employment Security are directed to address the viability of the health care industry as an important part of the rural economy.  The technical and financial assistance programs offered by these agencies are to be used to assist rural communities improve the delivery of health care.

DSHS is to consult with the three other agencies to coordinate the delivery of technical and assistance activities authorized by this act.

The State Health Coordinating Council (SHCC) is to serve as a clearinghouse of information on the availability of technical and financial assistance programs offered by the three agencies.

Hospital districts, health districts and emergency medical service regions are encouraged to coordinate in planning and delivering health care services.  They are similarly encouraged to coordinate with other county social service agencies.

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

Appropriation:    $25,000 to the Washington Rural Health Commission

Revenue:    none

Fiscal Note:      requested January 6, 1988

Senate Committee - Testified: John Anderson, Washington Task Force on Rural Health; Charlotte Hardt, Washington Task Force on Rural Health; Leah Layne, Washington Task Force on Rural Health; Dan Rubin, DSHS/SHCC; Ken Lewis, DSHS; Ed Gray, WSMA; Meg Van Schrool, Department of Community Development; Jeff Mero, WSHA