WSR 97-15-127

EMERGENCY RULES

DEPARTMENT OF HEALTH

[Filed July 23, 1997, 10:17 a.m.]

Date of Adoption: July 27 [22], 1997.

Purpose: To implement SSB 5227 by establishing a procedure by which the acquisition of a nonprofit hospital or public hospital district hospital is reviewed and approved or disapproved by the department.

Statutory Authority for Adoption: Chapter 332, Laws of 1997.

Under RCW 34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.

Reasons for this Finding: A process needs to be in place to meet public needs as soon as the legislation takes effect. The Department of Health must be prepared to receive applications at any time.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, amended 0, repealed 0; Federal Rules or Standards: New 0, amended 0, repealed 0; or Recently Enacted State Statutes: New 0, amended 0, repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, amended 0, repealed 0.

Number of Sections Adopted on the Agency's own Initiative: New 2, amended 0, repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, amended 0, repealed 0.

Number of Sections Adopted using Negotiated Rule Making: New 0, amended 0, repealed 0; Pilot Rule Making: New 0, amended 0, repealed 0; or Other Alternative Rule Making: New 0, amended 0, repealed 0.

Effective Date of Rule: Immediately.

July 22, 1997

Mimi L. Fields, M.D.

for Bruce Miyahara

NEW SECTION

WAC 246-312-010 Purpose. The purpose of this chapter is to implement chapter 332, Laws of 1997, the nonprofit hospital sales review program. The legislature has determined that the state has an interest to assure the continued existence of accessible, affordable health care facilities. To achieve this goal the department of health is responsible for reviewing and approving the acquisition of nonprofit hospitals by for-profit entities. The department may approve an acquisition of a nonprofit hospital only if it determines that the nonprofit hospital has taken appropriate steps to safeguard charitable assets and any proceeds of the acquisition are used for appropriate charitable health and health care purposes.

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NEW SECTION

WAC 246-312-020 Fees. (1) The department will assess on the acquiring party a nonrefundable application processing fee, a review fee and other charges as authorized in chapter 332, Laws of 1997. The fees shall consist of the following:

Nonrefundable

Processing Fees Processing Fee

Each New Application will be

subject to a $1,000

Each Amendment to an applica-

tion undergoing review will

be subject to a $ 500

Type of Acquisition Description Review Fee

Acquisition of 20% or more of

the assets of the hospital $40,000

Change in current ownership

position that results in ac-

quiring party holding or con-

trolling 50% or more of the

hospital assets $50,000

Any Other Change in Ownership $60,000

Amendment to an approved Change

of Ownership $15,000

Other Fees Fee Amount

Exemption Determinations $ 250

Fair Market Value Determination-

Nonrefundable $ Based on

Contracted

Amount

Public Hospital District-Voluntary

Review $ To be

billed at Cost

On-Site Compliance Visit-Nonrefundable $ To be

billed at Cost

Attorney General Opinion-Nonrefundable $ To be

billed at Cost

(2) When an applicant submits a written request to withdraw an application, the department shall refund the review fee using the following schedule:

Time Period For Requesting Amount of Review

Withdrawal of Application Fee to be Refunded

Within 10 working days after

receipt of the completed

application 100%

Between the 11th working day

and the 45th working day

after receipt of the com-

pleted application 50%

After the 45th working day 0%

(3) Fees for the fair market value determination shall be paid in addition to the applicable processing and application review fees. These fees shall be based on the contracted amount for consultants with the expertise to make such an evaluation. The acquiring party is responsible for this payment. If payment of this fee is not made within ten working days following being billed, the review of the application shall be suspended until payment is made.

(4) Fees for the public hospital district voluntary review shall be paid by the hospital district. These fees shall be billed at cost and must be paid within ten working days of being billed.

(5) Fees for the attorney general's opinion shall be paid in addition to the applicable processing and application review fees. These fees shall be based on the cost to the department and billed to the acquiring party. Fees must be paid within ten working days of being billed or the review of the application shall be suspended until payment is made.