Report Title:

Health; Federally Qualified Health Centers

Description:

Establishes a statewide program to enable federally qualified community health centers to obtain state resources for adequate facilities, information systems, and safe and appropriate patient care. (HB1053 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

1053

TWENTY-THIRD LEGISLATURE, 2005

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

RELATING TO HEALTH.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. The legislature finds that nonprofit federally qualified health centers provide critically needed primary and preventive care to low-income communities throughout the State. Many facilities where primary and preventive care services are provided need expansion, substantial renovation, refurbishing, and upgrading to continue to provide these services. In addition, demands to acquire and implement electronic health records or other major information systems are very difficult for federally qualified health centers to meet.

These federally qualified health centers, by virtue of their mission to provide health care to low-income patients regardless of their ability to pay and because of the high cost of real estate and construction in Hawaii, do not generate sufficient revenues to qualify for conventional borrowing for facility purchase, renovation, replacement, modernization, and major information system upgrades. Furthermore, the centers historically have lacked funds for capital maintenance, leading to significant deferred maintenance capital needs. Community health centers face increasing demand as more low-income patients turn to these centers for primary and preventive services.

It is the policy of the State of Hawaii to promote the safety, health, and welfare of the people of the State through investment in the primary care services delivery system by subsidizing the cost of expansion, renovation, rehabilitation, refurbishing, and upgrading of federally qualified health center facilities and electronic health records or other major information systems.

SECTION 2. The department of health shall establish a statewide community health centers program within the state health planning and development agency to, through state funds administered by the department, enable community health centers to obtain capital resources needed for adequate facilities, information systems, and safe and appropriate patient care, subject to the following:

(1) Eligible entities shall be restricted to federally qualified health centers;

(2) Fundable activities shall include purchase or lease of land or buildings, construction, reconstruction, renovation, refurbishment, expansion, upgrading, and equipping facilities, and acquiring or upgrading electronic health records or other major information systems for the purpose of providing or supporting primary care and prevention services, including medical, dental, and behavioral health care, rendered by the federally qualified health center;

(3) Limits of this funding shall be the lesser of twenty-five per cent of the total cost of the project or $500,000 for each federally qualified health center per project;

(4) Each federally qualified health center may apply for this facility assistance fund no more frequently than once every three years;

(5) The federally qualified health center shall provide to the department sufficient information to determine the fundability of the project including proof of ownership of the property or accepted offer to purchase it and a description of the proposed capital project that includes purpose, total cost, status, timeline, and sources of matching funds and financing; and

(6) The maximum annual cost to the State shall not exceed $1 per fiscal year.

SECTION 3. The state health planning and development agency will administer the program, and be responsible for the securing of additional private and federal sources of capital funds for community health centers.

SECTION 4. This Act shall take effect on July 1, 2005.