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By Michael Bush
House Bill 1620 literally flew through the Washington Legislature, passing unanimously before heading to the Senate with the same result. The bill, which provided for unlicensed ownership of health care practices along with multi-specialty providers, also had an emergency clause, with a retroactive effective date of January 1, 1997. All this occurred between February and April. Just one little bill in more than two hundred bills headed to Governor Locke’s desk for his signature.
Revised Code of Washington statute 18.100 et al requires ownership of health care practices solely by licensed medical professionals. As we all know, however, that is not always the case. Recent investigations by various auto insurers had revealed a number of clinics were operating unlawfully, and these insurers were taking steps to deny payments to these improperly formed clinics.
Additionally, the Washington Department of Health only has jurisdiction over licensed health care providers. If the owners are unlicensed, the Department of Health is unable to regulate the billing practices of these clinics.
Fortunately, there was one person who was awake. A Seattle attorney noticed this bill and downloaded it from the Internet. Various carriers were notified of the impending law now headed for the governor’s desk. Other agencies were also notified.
The fraud fighters in Washington clearly understood the consequences of this bill, though the legislature did not. With no government agency to regulate these unlicensed clinics, the State of Washington would become a banquet for fraudsters.
A flurry of paper began to hit the governor’s office. A meeting was held with the Health Care Police Board and another with the governor’s Legislative Liaison Officer.
On May 16, 1997, Governor Locke signed this bill, but only after using his section veto powers to veto the crucial areas of concern. His vetoes included the abrogation of RCW 18.100, the emergency clause and the retroactive effective date of January 1, 1997. In a letter to the legislature, Governor Locke requested that the legislature revisit this bill and that it work closely with the insurance industry in the future so that fraud concerns can be addressed.
These issues are not dead. The health care community is competing with HMOs. Various bills of this nature will continue to materialize in the legislature. Fraud fighters must stay alert to keep this type of legislation from being passed. We must work with our respective legislatures so they can be made aware of our concerns.
Michael Bush is an attorney with the firm of Veatch, Carlson in Long Beach and the former contributor to Capitol Update. He can be reached at (213) 381-2861.
© Copyright 1997 Alikim Media