Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Human Services, to which was referred S.B. No. 3134 entitled:

begs leave to report as follows:

The purpose of this measure is to ensure that there are cost reports for payments to long-term care providers and to appropriate funds for necessary reimbursements to providers.

Testimony in support of the measure was submitted by Healthcare Association of Hawaii and St. Francis Medical Center. The Department of Human Services submitted testimony in opposition.

Your Committee finds that long-term care facilities typically limit admissions to one or two patients who require dialysis due to lack of sufficient reimbursement. These patients usually require care that is far beyond that of average skilled nursing level patients. The additional costs are not covered by current reimbursement formulas. This measure will assist in covering the additional costs of necessary services.

Upon further consideration, your Committee has amended this measure by:

As affirmed by the record of votes of the members of your Committee on Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3134, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3134, S.D. 1, and be referred to the Committee on Ways and Means.