H-963 _______________________________________________
HOUSE BILL NO. 1525
_______________________________________________
State of Washington 51st Legislature 1989 Regular Session
By Representatives Sprenkle, Fuhrman, Bristow, Brooks, McLean, Moyer, Wolfe, Chandler, Nealey, D. Sommers, Holland, Hargrove, Prentice, Rector, H. Myers and Jones
Read first time 1/27/89 and referred to Committee on Health Care.
AN ACT Relating to the rural health facility licensure model; and adding a new chapter to Title 70 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that many rural communities do not operate hospitals in a cost-efficient manner. The cost of operating the rural hospital often exceeds the revenues generated. Some of these hospitals face closure and this may result in the loss of basic health care services for the community. Many communities are struggling to retain basic health care services by operating a cost-efficient facility located in the community. Current regulatory laws do not provide for the licensure option that is appropriate for rural areas.
The legislature further finds that a major barrier for the development of an appropriate rural licensure model is federal medicare approval to guarantee reimbursement for the costs of operating the facility. Current state licensure laws are modeled after medicare requirements. Medicare has begun negotiations with other states facing similar problems to develop exceptions with the goal of allowing reimbursement of rural alternative health care facilities. This state should begin negotiations with the federal government with the objective of designing a medicare eligible rural health care facility structured to meet the basic health care needs of rural Washington.
NEW SECTION. Sec. 2. (1) The department of social and health services or the department of health if enacted by the legislature shall develop rules for rural health facility licensure. In developing such rules the department shall consult with representatives of rural hospitals, public health departments, community and migrant clinics, and other providers of health care in rural communities. The department shall also consult with third-party payors, consumers, local officials, and others to insure broad participation in defining regulatory standards and requirements that are appropriate for rural facilities.
(2) When developing the rural health facility licensure rules, the department shall consider the report of the Washington rural health care commission established under chapter 207, Laws of 1988. Nothing in this chapter requires the administrator to follow any specific recommendation contained in that report except as it may also be included in this chapter.
(3) Upon developing rules, the department shall enter into negotiations with appropriate federal officials to seek medicare approval of the facility.
(4) The department shall report periodically to the senate health care and corrections committee and house of representatives health care committee on the progress of rule development and negotiations with the federal government.
NEW SECTION. Sec. 3. In developing the licensure law, the department shall:
(1) Minimize regulatory requirements to permit local flexibility and innovation in providing services;
(2) Promote the cost-efficient delivery of health care and other social services as is appropriate for the particular local community;
(3) Promote the delivery of services in a coordinated and nonduplicative manner;
(4) Maximize the use of existing health care facilities in the community;
(5) Permit regionalization of health care services when appropriate;
(6) Provide for linkages with hospitals, tertiary care centers, and other health care facilities to provide services not available in the facility; and
(7) Achieve health care outcomes defined by the community through a community planning process.
NEW SECTION. Sec. 4. Sections 1 through 3 of this act shall constitute a new chapter in Title 70 RCW.