WAC 388-96-710. Prospective payment rate for new contractors

(1) The department will establish an initial prospective medicaid payment rate for a new contractor as defined under WAC 388-96-026 within sixty days following the new contractor's application and approval for a license to operate the facility under chapter 18.51 RCW. The rate will take effect as of the effective date of the contract, except as provided in this section, and will comply with all the provisions of rate setting contained in chapter 74.46 RCW and in this chapter, including all lids and maximums set forth. (2) To set the initial prospective medicaid payment rate for a new contractor as defined in WAC 388-96-026 (1)(a) and (b), the department will: (a) Determine the direct care rate by multiplying the current direct care industry median per RCW 74.46.561 (8) by the appropriate county wage index by the appropriate industry medicaid average case mix index (MACMI); (b) Assign the new provider the indirect price based rate per RCW 74.46.561 (8); (c) Determine a capital rate once the facility has submitted square footage and facility age information per RCW 74.46.561 (5) and the department accepts it; and (d) Use the facility's available centers for medicare and medicaid date for at least the three quarter period currently being measured by the department to calculate a quality enhancement rate and if no data is available, the department will not pay a quality enhancement. (3) A prospective payment rate set for all new contractors will be subject to adjustments for economic trends and conditions as authorized and provided in this chapter and in chapter 74.46 RCW.