WSR 97-12-084

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF HEALTH

[Filed June 4, 1997, 11:35 a.m.]

Subject of Possible Rule Making: Implementation of SB 5227, regulating the acquisition of some or all assets of nonprofit hospitals. This may include the public hearing process, fees, and on-going monitoring requirements. The legislation does not require rules, however, the department is seeking public input on whether clarifying rules would be beneficial to potential persons of interest in such acquisitions.

Statutes Authorizing the Agency to Adopt Rules on this Subject: Chapter 332, Laws of 1997 (SB 5227) authorizes but does not require the department to adopt rules. RCW 43.70.250 requires the department to place "license" fees in rules. The fees associated with this statute appear to fall under the definition in chapter 43.70 RCW.

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Rules may provide potential participants -- those acquiring and selling assets, and the communities affected in particular -- with information beyond what is provided in statute, thereby making their participation more efficient and effective.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: Attorney General's Office, Secretary of State's Office.

Process for Developing New Rule: The agency will work with the industry and other interested parties to develop the rules. At least one public hearing will be held.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication by contacting Stephen A. Boruchowitz, Washington State Department of Health, P.O. Box 47851, Olympia, WA 98504-7851, (360) 753-0719, FAX (360) 664-0398.

June 4, 1997

Bruce Miyahara