STAND. COM. REP. NO. 2398

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 2874
                                        S.D. 1




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 2874 entitled: 

     "A BILL FOR AN ACT RELATING TO HAWAII HEALTH SYSTEMS
     CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to clarify the function of
the Public Health Facility Management Advisory Committees
(Advisory Committees) to the Hawaii Health Systems Corporation
(HHSC).

     Your Committee received testimony in support of this measure
from the Department of Health, HHSC, Kona-Kohala Chamber of
Commerce, and a private individual.  Testimony in opposition was
received from the HGEA-AFSCME.

     This measure also prohibits the HHSC from closing any
facility without approval of the legislature, and eliminates the
requirement that the HHSC notify the legislature of any
substantial reduction or elimination of direct patient care
services.

     This measure clarifies that the Advisory Committees must
advise the chief executive officer of the HHSC on the substantial
modification, decrease, or increase in the scope or type of
health care services rendered by the public health facilities
within its respective jurisdiction.  The Advisory Committees are
intended to augment the management functions of HHSC over those

 
a                                                     SB2874 SD1
                                   STAND. COM. REP. NO. 2398
                                   Page 2


facilities and services.  This measure enhances the ability of
the Advisory Committees to advise the HHSC.

     According to testimony of the HHSC, a recent report of the
National Public Hospitals Association recommended that current
law requiring legislative approval of any substantial reduction
or elimination of direct patient care services be repealed or
clarified.  Your Committee agrees that the HHSC needs flexibility
and autonomy in order to be more competitive and viable,
especially in light of the HHSC's current financial condition.
However, your Committee is also concerned that certain patient
care services should not be substantially reduced or eliminated
without the approval of the legislature.

     Your Committee has amended this measure by:

     (1)  Adding public health services;

     (2)  Changing public health facilities to public hospital
          facilities;

     (3)  Requiring legislative approval by concurrent resolution
          of any planned reduction or elimination of long-term
          care beds and services by the HHSC and setting out
          procedures for the HHSC to follow;

     (4)  Clarifying that any approval by the legislature under
          (3) shall supercede a decision of the State Health
          Planning and Development Agency on the application for
          a certificate of need;

     (5)  Clarifying that no reduction or elimination of direct
          patient care services may be made without the approval
          of the legislature, concerning inpatient tuberculosis
          treatment and quarantine, psychiatric care at Samuel
          Mahelona, Kona, and Hilo community hospitals, and other
          public health services;

     (6)  Requiring that the State share in the cost with the
          HHSC if the legislature directs the continuance of any
          direct patient care services; and

     (7)  Making technical, nonsubstantive amendments to reflect
          preferred drafting style.

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 2874, as amended herein, and recommends that it pass

 
a                                                     SB2874 SD1
                                   STAND. COM. REP. NO. 2398
                                   Page 3


Second Reading in the form attached hereto as S.B. No. 2874,
S.D. 1, and be referred to the Committee on Ways and Means.

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



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
a                                                     SB2874 SD1