Health Care chair: Boost transparency with provider directory

Working to meet his priority to improve transparency and lower healthcare costs, Rep. Dan Bronoske (D-Lakewood) introduced HB 1686 to create a healthcare entity directory in Washington state. The bill defines entities as healthcare providers, facilities, provider organizations, health benefit managers, and health carriers. It passed the Healthcare and Wellness Committee today. 

In recent years, multiple reports by state agencies aiming to identify impediments to the state’s cost growth target, established by the Health Care Cost Transparency Board, went uncompleted because of insufficient data. This bill will gather the necessary data and make it easily accessible.  

“A major driver of high costs of healthcare is vertical and horizontal integration,” said Bronoske. “If we can’t locate where the drivers are to raising costs, that’s a problem. This bill sets up the framework to better understand where the providers are, who works for who, where are the gaps in the system, and who’s getting acquired by private equity. This registry allows us to identify and address ways to increase competition in the market and lower costs for patients and consumers.” 

Reporting requirements regarding ownership and operation include so far, the legal name, business address, and all applicable business identification numbers. Additionally, the names and applicable business identification numbers for each person or entity, including private equity funds, that has ownership or investment interest, has a controlling interest, or is contracted as a management services organization at the healthcare entity.  

Up-to-date organizational charts showing business structure, the names compensation and any affiliations with different health care entities for both staff and board members, and comprehensive financial reports related to the entity are additional transparency measures included in the bill. Independent providers consisting of two or fewer providers are exempt from reporting requirements.  

“We’re not trying to create additional red tape in this industry,” Bronoske said. “We’re going to do everything to ease the burden and make it as user friendly as possible.”  

DOH will be required to develop an interactive tool making the collected data easily accessible to consumers.  

“The information we’re looking to make available is crucial for increased accountability and transparency and giving lawmakers the tools they need to shape policy in the healthcare space,” Bronoske said. “Above all else this is about doing what’s right for the people of Washington.”