(1) The need for projects identified in *RCW
70.38.240 shall be determined using the individual planning area's estimated nursing home bed need ratio and includes but is not limited to the following criteria:
(a) The current capacity of nursing homes and other long-term care services;
(b) The occupancy rates of nursing homes and other long-term care services over the previous two-year period; and
(c) The ability of the other long-term care services to serve all people regardless of payor source.
(2) For the purposes of this section, nursing home beds include long-term care units or distinct part long-term care units located in a hospital that is licensed under chapter
70.41 RCW.