The bill amends RCW 74.09.5225 to establish specific provisions for critical access hospitals in Skagit County, particularly those located on islands and operating within public hospital districts. It introduces a new eligibility criterion for these hospitals to receive payments under medical assistance programs, allowing them to be compensated based on allowable costs incurred during the year, unless they are part of the Washington rural health access preservation pilot. The bill also clarifies that hospitals that applied for certification before January 1, 2005, remain eligible for medical assistance payments even if they have not completed the certification process.

Additionally, the bill outlines the framework for the Washington rural health access preservation pilot, which aims to create an alternative service and payment system to sustain essential services in rural communities. It specifies that participation in the pilot is optional and includes provisions for hospitals to exit the pilot if it is not beneficial. The pilot will utilize a value-based payment methodology, focusing on quality and value rather than volume, and will require reporting on its progress and outcomes to the legislature. The bill also includes a provision for enhanced payment rates for certain rural hospitals that meet specific criteria, ensuring they receive adequate funding for their services.

Statutes affected:
Original bill: 74.09.5225
Substitute bill: 74.09.5225
Bill as passed Legislature: 74.09.5225