SB1435

SECTION 1. This Act exempts the acute care medical facility that Malulani Health & Medical Center, L.L.C., ("Malulani project") is proposing to build (and as is described in certificate of need application no. 05-25) from the certificate of need requirement of chapter 323D, Hawaii Revised Statutes.

Maui is in need of a new and additional acute care hospital. Maui is the only island with one acute care hospital. Despite the presence of Maui Memorial Hospital, the island of Maui faces a bed shortage and an exodus of doctors who do not have a state-of-the-art facility to handle modern medical procedures.

To serve the unmet medical needs of Maui residents, the Malulani project has proposed to build a second hospital on the island of Maui. As described in certificate of need application number 05-25, the Malulani project is designed to be a 150-bed full service, acute care community hospital and is intended to function as an integrated, alternative, and state-of-the-art medical care facility and to complement the medical services that are currently provided by the current, sole hospital that is operating on Maui, which is Maui Memorial Hospital.

The initial Malulani project will cost $211,800,000 to plan, build, equip, and operate the Malulani project facility. Notably, all of the funding is to be paid by private funds.

The Malulani project is substantially supported by a wide cross-segment of the population, including support from the Governor of Hawaii, the current and previous mayors of Maui County, many Maui physicians and other health professionals, several medical associations, other community organizations on Maui, and the residents of Maui.

Under the current law, no new modern, acute care hospital can be built on Maui unless a certificate of need is obtained from the state health planning and development agency in conformity with the provisions of chapter 323D, and the implementing rules for chapter 323D, chapter 11-186 of the Hawaii Administrative Rules.

In certificate of need application number 05-25, the Malulani project sought a certificate of need for such authorization to build this proposed acute care hospital on Maui. Despite the widespread support for the Malulani project, the state health planning and development agency initially denied a certificate of need on application number 05-25. The Malulani project is currently seeking reconsideration of the state health planning and development agency's initial denial of a certificate of need.

Although the state health planning and development agency denied the Malulani project a certificate of need, the state health planning and development agency, in its written decision on certificate of need application number 05-25, recognized the need for a modern acute care hospital on Maui.

The legislature also finds that an additional acute care medical facility is needed on the island of Maui. This Act amends chapter 323D, Hawaii Revised Statutes, to exempt the Malulani project, as set forth certificate of need application number 05-25 (including supplementary filings in support of the certificate of need application number 05-25 up to the date of enactment of this Act) from the certificate of need requirement of chapter 323D, Hawaii Revised Statutes.

SECTION 2. Chapter 323D, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§323D- Exemption from certificate of need requirement. (a) Notwithstanding any law to the contrary, the acute care facility proposed by Malulani Health & Medical Center, L.L.C., in its certificate of need application number 05-25 that was submitted to the state health planning and development agency, shall be exempt from the requirements of this chapter. Such facility may be constructed and operated without a certificate of need so long as the facility is constructed and operated in conformity with certificate of need application 05-25, including any supplementary materials submitted prior to the enactment of this Act in connection with certificate of need application 05-25 to the state health planning and development agency in support of such application.

(b) A certificate of need must be obtained in accordance with this chapter for the following:

(1) Subsequent construction to the Malulani Health & Medical, L.L.C. facility that is not described in its certificate of need application number 05-25 or in its supplementary materials submitted prior to the date of enactment of this Act to the state health planning and development agency in connection with certificate of need application 05-25; and

(2) Any changes in the types of medical services operated at the Malulani Health & Medical, L.L.C. facility that are not described in its certificate of need application number 05-25 or in its supplementary materials submitted prior to the date of enactment of this Act to the state health planning and development agency in connection with certificate of need application 05-25; provided that this chapter requires that a certificate of need be obtained for the activities listed in this subsection."

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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BY REQUEST

THE SENATE	S.B. NO.	1435
TWENTY-FOURTH LEGISLATURE, 2007
STATE OF HAWAII