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PDFWAC 182-550-4200

Change in hospital ownership.

(1) For purposes of this section, a change in hospital ownership may involve one or more, but is not limited to, the following events:
(a) A change in the composition of the partnership;
(b) A sale of an unincorporated sole proprietorship;
(c) The statutory merger or consolidation of two or more corporations;
(d) The leasing of all or part of a provider's facility if the leasing affects utilization, licensure, or certification of the provider entity;
(e) The transfer of a government-owned institution to a governmental entity or to a governmental corporation;
(f) Donation of all or part of a provider's facility to another entity if the donation affects licensure or certification of the provider entity;
(g) Disposition of all or some portion of a provider's facility or assets through sale, scrapping, involuntary conversion, demolition, or abandonment if the disposition affects licensure or certification of the provider entity; or
(h) A change in the provider's federal identification tax number.
(2) A hospital must notify the medicaid agency in writing ninety days before the date of an expected change in the hospital's ownership, but in no case later than thirty days after the change in ownership takes place.
(3) When a change in a hospital's ownership occurs, the agency sets the new provider's cost-based conversion factor (CBCF), conversion factor, per diem rates, per case rate, at the same level as the prior owner's, except as provided in subsection (4) of this section.
(4) The agency sets for a hospital formed as a result of a merger:
(a) A blended CBCF, conversion factor, per diem rate, per case rate, based on the old hospitals' rates, proportionately weighted by admissions for the old hospitals; and
(b) An RCC rate determined by combining the old hospitals' cost reports and following the process described in WAC 182-550-4500. Partial year cost reports will not be used for this purpose.
(5) The agency recaptures depreciation and acquisition costs as required by section 1861 (V)(1)(0) of the Social Security Act.
[Statutory Authority: RCW 41.05.021 and 41.05.160. WSR 15-18-065, § 182-550-4200, filed 8/27/15, effective 9/27/15. WSR 11-14-075, recodified as § 182-550-4200, filed 6/30/11, effective 7/1/11. Statutory Authority: RCW 74.08.090, 74.09.500 and 2005 c 518. WSR 07-14-051, § 388-550-4200, filed 6/28/07, effective 8/1/07. Statutory Authority: RCW 74.08.090, 74.09.730, 74.04.050, 70.01.010, 74.09.200, [74.09.]500, [74.09.]530 and 43.20B.020. WSR 98-01-124, § 388-550-4200, filed 12/18/97, effective 1/18/98.]
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