It is enacted by the General Assembly as follows:

SECTION 1. Chapter 40-8 of the general laws entitled "Medical Assistance" is hereby amended by adding thereto the following section:

{ADD 40-8-23. Contracting standards. -- ADD} {ADD The director shall establish and maintain contracting standards for home health aide, homemaker, and nursing services. These standards shall apply to all such services purchased by the state of Rhode Island from licensed providers. The contracting standards shall take into consideration industry guidelines published by national accreditation organizations such as the Joint Commission for the Accreditation of Healthcare Organizations and self reporting activities by providers. ADD}

SECTION 2. This act shall take effect on January 1, 1997.