SENATE BILL REPORT

SB 5800

BYSenators Lee, Smitherman and Sellar

Providing for prospective rate adjustments.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):February 21, 1989

Senate Staff:Don Sloma (786-7414)

AS OF FEBRUARY 20, 1989

BACKGROUND:

The nursing home reimbursement system is governed by specific statutes which generally provide for cost based reimbursement of nursing homes.  However, administrative cost allowances are determined by the Legislature using methods not specified in statute.

SUMMARY:

Adjustments in nursing home reimbursement rates for inflation in administrative costs related to providing nursing services and food are no longer determined by the Legislature.  The Department of Social and Health Services (DSHS) must calculate such adjustments based on inflation in nursing and food services as reported by nursing homes.  Such rates must be adjusted for projected economic trends specific to nursing and food services.

Overall administrative and operating costs for nursing homes must be adjusted for inflation based on reported costs as described above.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 8, 1989