H-2451 _______________________________________________
SUBSTITUTE HOUSE BILL NO. 970
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State of Washington 50th Legislature 1987 Regular Session
By House Committee on Ways & Means/Appropriations (originally sponsored by Representatives Sayan, Taylor, Cole, Padden, Baugher, D. Sommers, Rayburn, Rust, Vekich, Schoon, Barnes, Fisch and Jesernig)
Read first time 3/9/87 and passed to Committee on Rules.
AN ACT Relating to reimbursement of institutions for the mentally retarded; and amending RCW 74.09.120.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. Section 74.09.120, chapter 26, Laws of 1959 as last amended by section 44, chapter 67, Laws of 1983 1st ex. sess. and RCW 74.09.120 are each amended to read as follows:
The department shall purchase necessary physician and dentist services by contract or "fee for service." The department shall purchase hospital care by contract or by all inclusive day rate, or at a reasonable cost based on a ratio of charges to cost. Any hospital when requested by the department shall supply such information as necessary to justify its rate, charges or costs. All additional services provided by the hospital shall be purchased at rates established by the department after consultation with the hospital. The department shall purchase nursing home care by contract. The department shall establish regulations for reasonable nursing home accounting and reimbursement systems which shall provide that no payment shall be made to a nursing home which does not permit inspection by the department of social and health services of every part of its premises and an examination of all records, including financial records, methods of administration, general and special dietary programs, the disbursement of drugs and methods of supply, and any other records the department deems relevant to the establishment of such a system.
All other services and supplies provided under the program shall be secured by contract.
The department may purchase care in institutions for the mentally retarded, also known as intermediate care facilities for the mentally retarded. The department shall establish rules for reasonable accounting and reimbursement systems for such care. However, the department shall reimburse those licensed nursing homes which contract with the department's division of developmental disabilities as institutions for the mentally retarded, for the property and return-on-investment portion of their reimbursement formula by using the provisions contained in RCW 74.46.290 through 74.46.390, 74.46.510, and 74.46.530: PROVIDED, HOWEVER, That facilities being leased as of January 1, 1987, shall continue to be reimbursed for their lease cost for the remaining term of the lease. However, for purposes of establishing a facility's variable return pursuant to RCW 74.46.530(1)(c), the licensed nursing home contracting as an institution for the mentally retarded shall receive a two percent variable return. Institutions for the mentally retarded include licensed nursing homes, public institutions, licensed boarding homes with fifteen beds or less, and hospital facilities certified as intermediate care facilities for the mentally retarded under the federal medicaid program to provide health, habilitative, or rehabilitative services and twenty-four hour supervision for mentally retarded individuals or persons with related conditions and includes in the program "active treatment" as federally defined.