STAND. COM. REP. NO. 653________

                                 Honolulu, Hawaii
                                                   , 1999

                                 RE: H.B. No. 1413
                                     




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committees on Human Services and Housing and Health, to
which was referred H.B. No. 1413 entitled: 

     "A BILL FOR AN ACT RELATING TO QUEST,"

beg leave to report as follows:

     The purpose of this bill is to require the Department of
Human Services (DHS) to compensate health centers treating QUEST
patients based on risk factors for serious medical conditions.

     Testimony in opposition to the bill was received from DHS.
DHS stated that the bill is not consistent with the current
manner in which DHS contracts for QUEST services.  In addition,
if a special risk factor adjustment is made, additional DHS
resources in staffing, consultants, and funding to create another
funding mechanism will be required.

     Testimony in strong support of the bill was received from
Bay Clinic, Inc., the Hawaii State Primary Care Association, and
Healthy Mothers, Healthy Babies Coalition of Hawaii.  Testimony
in support of the bill with amendments was received from Papa Ola
Lokahi, AlohaCare, the Waikiki Health Center, and the Waianae
Coast Comprehensive Health Center. 

     Your Committees find that undercompensated QUEST providers
tend to be community health centers that serve patients in the
greatest need of medical care, and that these centers are in need
of adequate compensation from QUEST in order to survive.  Your
Committees also find, however, that the proposal to establish a

 
 
                                 STAND. COM. REP. NO. 653________
                                 Page 2

 
risk factor adjustment system as a basis for compensation is in
need of more information and discussion.

     As affirmed by the records of votes of the members of your
Committees on Human Services and Housing and Health that are
attached to this report, your Committees are in accord with the
intent and purpose of H.B. No. 1413 and recommend that it pass
Second Reading and be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committees on Human Services
                                   and Housing and Health,

                                   
                                   
                                   
                                   
______________________________     ______________________________
ALEXANDER C. SANTIAGO, Chair       DENNIS ARAKAKI, Chair