Report Title:

Hawaii Health Systems Corporation; Outsource of Services

 

Description:

Authorizes Hawaii health systems corporation to out source for services.

 


THE SENATE

S.B. NO.

1136

TWENTY-FIFTH LEGISLATURE, 2009

 

STATE OF HAWAII

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to Hawaii health systems corporation.

 

 

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

 


     SECTION 1.  The legislature created the Hawaii health systems corporation by Act 262, Session Laws of Hawaii 1996. This was done for the purpose of providing quality and cost effective health care for all the people in the State served by the publicly owned and operated community hospital facilities. One of the primary cornerstones of this landmark legislation was the intent to free these facilities from burdensome, redundant, and restrictive bureaucratic procedures.  The legislative intent, and the goal of the Hawaii health systems corporation, of providing quality health care services in the remote areas of the State and supporting much needed long-term care beds on Oahu while seeking to reduce the need for general fund subsidy, is hindered by the prohibition against the outsourcing for services.

     The purpose of this Act is to allow the Hawaii health systems corporation flexibility to outsource for services when appropriate in order to enhance its operational efficiency and to serve as a quality focused, integrated health care system for the people of Hawaii.

     SECTION 2.  Section 323F-7, Hawaii Revised Statutes, is amended by amending subsection (e) to read as follows:

     "(e)  [The duties and powers granted to the corporation or any regional system board may not be used to enter into contractual or business relationships that have the practical effect of allowing or are intended to allow private-sector counterparts to replace existing employee positions or responsibilities within the corporation or in any regional system or its facilities; provided the corporation or regional system boards shall be allowed to enter into such relationships to the extent and for the purposes that the division of community hospitals could have done under collective bargaining contracts that were in effect for the 1995-1996 fiscal year.] Notwithstanding any other law to the contrary, including but not limited to any applicable civil service law, collective bargaining law, laws governing the Hawaii health systems corporation, customary or historical past practices, or the fact that the services hereinafter described may have been performed by persons or positions in civil service, the corporation board and the regional system boards may enter into a contract with a private or federal, or state or county government entity to obtain services therefrom, including services provided in conjunction with the procurement of goods or construction, provided that a determination is made regarding the sustainability of the provision of services by the outside entity, and there is reasonable basis to believe that the service of equivalent or better quality than that which could be provided by its employees can be provided by an outside entity at lower cost.

     The determination shall be made by the corporation board for corporate outsourcing, the regional system board for regional outsourcing, and the corporation board and the applicable regional system boards for multi-regional outsourcing; provided that:

     (1)  The general administration and the responsibility for the proper implementation of the outsourcing program shall be vested in the regional system board for outsourcing by the regional system, in the corporation board for outsourcing by the corporation, and for outsourcing involving multiple regions, in the corporation board and regional system boards of the regions involved in the outsourcing;

     (2)  In making the determination required pursuant to this section, the corporation board and the regional system boards shall make reasonable efforts to minimize or avoid the adverse effects of an agency's decision to secure needed services from outside entity contractors.  The public procurement process shall be applied in awarding a contract to an outside entity, to assure the transparency of the process, and also to assure proper public notice as necessary to allow full negotiation of any adverse impact on a case by case basis; and

     (3)  This section on outsourcing preempts and supersedes all other state law with regard to determining whether services, including services obtained in conjunction with the procurement of goods and construction, should be provided exclusively by the employees of the corporation or any of the regional systems, or obtained through contracts with an outside entity.

     For purposes of this section "private entity" means any individual, company, or organization that is not an employee or agency within the federal, state, or county government."

     SECTION 3.  All acts passed prior to or during this regular session of 2008, whether enacted before or after passage of this Act shall be interpreted to conform to this Act, unless the acts specifically provide that this Act is being amended.  In so far as this Act is inconsistent with any other law, this Act shall control.

     SECTION 4.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect upon its approval.

 

INTRODUCED BY:

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