Amend CSHB 1 in Article II of the bill, following the appropriations to the Department of Aging and Disability Services, by adding the following to number 43. Closure of State Supported Living Center.

In soliciting bids from private psychiatric hospital providers, DSHS shall assure that successful bidders will show evidence that they have experience operating inpatient psychiatric care facilities serving populations with acuity levels similar to the current state hospital population, at a cost at or below the prescribed savings described in this rider, in hospitals that are fully accredited by JCAHO (Joint Commission on Accreditation of Healthcare Organizations) and certified by Medicare.

If DSHS awards a private psychiatric hospital with a contract to operate one or more state hospitals, the term of that contract shall be for at least 4 years, and savings from the operation of the private psychiatric hospital shall be equal to at least $10 million per year in each year of the contract.

Before awarding a contract to a private psychiatric hospital provider, DSHS shall assure that the action will not result in the reduction of Disproportionate Share (DSH) payments currently received by the state.