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PDFWAC 388-96-536

Does the department limit the allowable compensation for an owner or relative of an owner?

(1) Total compensation including compensation received from a related or unrelated organization or company paid to an owner or relative of an owner shall be limited to ordinary compensation for necessary services actually performed.
(a) Compensation is ordinary if it is the amount usually paid for comparable services in a comparable facility to an unrelated employee, and does not exceed any applicable limits set out in chapter 74.46 RCW and this chapter.
(b) A service is necessary if it is related to patient care and would have had to be performed by another person if the owner or relative had not done it.
(2) If the service provided would require licensed staff, e.g., RN, then the same license standard must be met when performed by an owner, relative or other administrative personnel.
(3) The contractor, in maintaining customary time records adequate for audit, shall include such records for owners and relatives who receive compensation.
[Statutory Authority: Chapter 74.46 RCW, 2010 1st sp.s. c 34, and 2010 1st sp.s. c 37 § 958. WSR 11-05-068, § 388-96-536, filed 2/14/11, effective 2/26/11. Statutory Authority: RCW 74.46.800. WSR 98-20-023, § 388-96-536, filed 9/25/98, effective 10/1/98.]
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