SENATE BILL REPORT

SHB 970

BYHouse Committee on Ways & Means/Appropriations (originally sponsored by Representatives 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

Senate Committee on Ways & Means

Senate Hearing Date(s):March 30, 1987; April 3, 1987

Majority Report:     Do pass.

     Signed by Senators McDermott, Chairman; Bluechel, Cantu, Craswell, Fleming, Lee, McDonald, Moore, Rasmussen, Saling, Talmadge, Vognild, Williams, Zimmerman.

Senate Staff:Jan Sharar (786-7715)

                April 3, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 3, 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:

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.

Fiscal Note:    available

Senate Committee - Testified:   Representative Doug Sayan, original sponsor; Al Dire, Administrator, United Cerebral Palsy Association