The bill establishes a new licensing framework for health care administrators in Washington State, requiring that all individuals employed in this capacity at hospitals must obtain a license by January 1, 2027. The bill defines a health care administrator as either a nonclinical hospital manager with direct supervisory authority over clinical providers or a nonclinical director with oversight responsibilities. The Department of Health is granted authority to adopt rules, set licensing fees, issue licenses, and establish continuing education requirements. Additionally, the bill outlines the examination process for obtaining a license, including the topics to be covered and the procedures for applicants who do not pass on their first attempt.

Furthermore, the bill amends existing law to include health care administrators under the Uniform Disciplinary Act, specifying unprofessional conduct related to their roles, such as making fiscal decisions that could harm patients or failing to supervise staff adequately. It also clarifies that health care administrators employed by the U.S. armed services are exempt from these licensing requirements. The bill reenacts and amends RCW 18.130.040 to incorporate the new licensing category, ensuring that health care administrators are recognized within the state's regulatory framework.