SENATE BILL REPORT

SB 5179

BYSenators Barr, Patterson, Conner, Metcalf, Sellar, Benitz, Anderson, West and Kreidler

Providing for a rural health facility licensure model.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):January 26, 1989; February 2, 1989

Majority Report:  That Substitute Senate Bill 5179 be substituted therefor, and the substitute bill do pass.

      Signed by Senators West, Chairman; Smith, Vice Chairman; Amondson, Johnson, Niemi, Wojahn.

Senate Staff:Scott Plack (786-7409)

                  February 10, 1989

AS REPORTED BY COMMITTEE ON HEALTH CARE & CORRECTIONS, FEBRUARY 2, 1989

BACKGROUND:

There are a limited number of medical care facilities eligible for federal Medicare reimbursement for overhead costs.  They include hospitals, ambulatory surgical centers, comprehensive outpatient rehabilitation facilities and rural health clinics.  Each of these eligible facilities must meet specific requirements for minimum personnel, staffing and space standards.

Providing care in a Medicare eligible facility is important because Medicare is a major payer of hospital services.

The Washington Rural Health Care Commission was formed by the Legislature to recommend changes in state policy to help assure access to basic health care in rural areas.  The commission concluded that the current types of facilities eligible for reimbursement do not meet the unique service delivery needs of many rural communities.  A rural appropriate health care facility that permits flexibility in the delivery of services could insure the continued availability of health care to rural citizens.  Medicare will consider granting waivers to allow reimbursement of alternative health care facilities.

SUMMARY:

The Department of Social and Health Services (DSHS) in consultation with representatives from rural health care providers, purchasers, consumers and others is to develop rules for an alternative health care facility licensure model.  Rules must allow for maximum local flexibility in providing services which permit cost-efficient delivery of services, better coordination of existing services and the optimal use of existing facilities.

The department is to negotiate with the federal government to seek Medicare approval for the facility so that government reimbursement for services provided can be authorized.  Periodic reports on the progress of rule making and negotiations are to be made to the standing House and Senate committees on health care.

EFFECT OF PROPOSED SUBSTITUTE:

A definition of an alternative health care facility is added.  The alternative health care facility is not to be considered a hospital for determining building occupancy purposes.  The term "basic" is removed when referring to health care services to be available at the proposed alternative facility.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 18, 1989

Senate Committee - Testified: FOR:  Dr. John Anderson; Dr. Stephen Kriebel, WSMA; Jeff Mero, State Hospital Association; Verne Gibbs, DSHS; Eldon E. Jacobsen, SHCC; Tom Martin, Lincoln Hospital District; Mary Selecky, Rural Health Commission