December 27, 2013 New Washington Department of Health Regulations Practice Group(s): By Carla M. Dewberry Health Care On December 23, 2013, the Washington State Department of Health (the “Department”) adopted two regulatory changes that impact hospitals. As discussed below, one change impacts Certificate of Need (CoN) review when there is a change in the control of a hospital. The second regulatory change requires hospital disclosure of patient access policies. Certificate of Need Review Required In Connection with the Sale, Purchase, or Lease of a Hospital The Department amended the CoN rules to clarify that a change in control of a hospital, whether by sale, purchase, lease, affiliation, corporate restructuring, merger, or other arrangement is subject to CoN review. This was accomplished by revising WAC 246-310010 to define the phrase “sale, purchase, or lease.” The regulation now defines a sale, purchase or lease as: “any transaction in which the control, either directly or indirectly, of part or all of any existing hospital changes to a different person including, but not limited to, by contract, affiliation, corporate membership restructuring, or any other transaction.” The term “person” was revised by adding the words “public or private” to the existing definition. As revised, the new definition of a person is an “individual, a trust or estate, a partnership, any public or private corporation (including associations, joint stock companies, and insurance companies), the state, or a political subdivision or instrumentality of the state, including a municipal corporation or a hospital district.” (Addition underlined.) New Patient Disclosure Requirements In addition, WAC 246-320-141 (Patient rights and organizational ethics)1 was revised to require hospitals to provide the Department with the hospital’s policies related to patient admission, nondiscrimination, end-of-life care, and reproductive health care (and update the 1 The new regulatory language reads as follows: (5) No later than sixty days following the effective date of this section, every hospital must submit to the department its policies related to access to care: (a) Admission; (b) Nondiscrimination; (c) End of life care; and (d) Reproductive health care. (6) The department shall post a copy of the policies received under subsection (5) of this section on its web site. (7) If a hospital makes changes or additions to any of the policies listed under subsection (5) of this section, it must submit a copy of the changed or added policy to the department within thirty days after the hospital approves the changes or additions. (8) Hospitals must post a copy of the policies provided under subsection (5) of this section to its own web site where it is readily accessible to the public, without requiring a login or other restriction. New Washington Department of Health Regulations Department when these policies change). The hospital must make these policies available on the hospital’s website, and the Department is required to post the hospital’s policies on the Department’s website. The first hospital reporting is due to the Department on March 24, 2014; this is also the deadline for the posting on the hospital’s website. Author: Carla M. Dewberry carla.dewberry@klgates.com +1. 206.370.8317 Anchorage Austin Beijing Berlin Boston Brisbane Brussels Charleston Charlotte Chicago Dallas Doha Dubai Fort Worth Frankfurt Harrisburg Hong Kong Houston London Los Angeles Melbourne Miami Milan Moscow Newark New York Orange County Palo Alto Paris Perth Pittsburgh Portland Raleigh Research Triangle Park San Diego San Francisco São Paulo Seattle Seoul Shanghai Singapore Spokane Sydney Taipei Tokyo Warsaw Washington, D.C. Wilmington K&L Gates practices out of 48 fully integrated offices located in the United States, Asia, Australia, Europe, the Middle East and South America and represents leading global corporations, growth and middle-market companies, capital markets participants and entrepreneurs in every major industry group as well as public sector entities, educational institutions, philanthropic organizations and individuals. For more information about K&L Gates or its locations, practices and registrations, visit www.klgates.com. This publication is for informational purposes and does not contain or convey legal advice. The information herein should not be used or relied upon in regard to any particular facts or circumstances without first consulting a lawyer. ©2013 K&L Gates LLP. All Rights Reserved. 2