SENATE BILL REPORT

SB 6125

BYSenators Deccio, Sellar, Johnson, Smith, West and Barr

Revising rural hospital provisions.

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:

The burden of reporting requirements and costs of compliance with government regulations fall more heavily on smaller firms than on big businesses.  In 1982 the Legislature passed the state's Regulatory Fairness Act to reduce the burden of regulatory compliance on small businesses.

The state's rural hospital industry is heavily regulated.  Most rural hospitals are small facilities and many of current regulations may be more appropriate for the larger urban hospitals.  The cost of compliance for rural hospitals is often prohibitive and could threaten their continued existence.  The loss of these hospitals might jeopardize the availability of basic health care services in some rural areas.

The current definition of a small business does not include most rural hospitals.  The act requires businesses to be profit making and have fifty or fewer employees.  Most rural hospitals are public entities and average more than fifty employees.

SUMMARY:

The current definition of a small business is specifically placed into the chapter.  It was previously defined by reference to another statute.

Rural Hospitals are defined.

The Regulatory Flexibility Act is amended to include rural hospitals as small businesses.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 6, 1988