STAND. COM. REP. NO.  470

Honolulu, Hawaii

                , 2009

RE:   H.B. No. 1782

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fifth State Legislature

Regular Session of 2009

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 1782 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH INFORMATION EXCHANGE,"

begs leave to report as follows:

     The purpose of this bill is to help Hawaii realize potential savings in health care, while increasing quality of care and access, increasing medical services to underserved and rural areas of the state, and even accessing new sources of federal funding by establishing an Office of State Coordinator of Health Information Exchange (OSCHIE) within the Department of Health (DOH) to coordinate local efforts to develop a health information exchange network in Hawaii, identify funding sources, integrate state health programs, and eventually participate in the national health information technology network.

     The Hawaii Primary Care Association, Hawaii Pacific Health, Hawaii Health Information Exchange, Ho‘okele Personal Health Planners, LLC., and a concerned individual supported this bill with amendments.  The Hawaii Medical Service Association supported the intent of this measure.  The Department of Budget and Finance opposed this bill.  DOH, the Department of Human Services, League of Women Voters of Hawaii, and a concerned individual submitted comments.

     Your Committee finds that Health Information Exchange is an essential tool in significantly increasing health and safety in our health system as well as improving financial efficiency.  However, safety in terms of protecting the confidential information such systems store and transmit is of utmost importance and serious consideration must be taken to ensure this information remains secure and uncompromised.

     Your Committee has amended this bill by, among other things:

(1)  Authorizing DOH to contract with an agency experienced in addressing health information exchange system development and implementation;

(2)  Expanding the specifications for the development of a mechanism to evaluate, promote, and improve the quality of health and health care delivered to various populations;

(3)  Requiring all network participants to ensure confidential data is secure;

(4)  Changing the members of the annual council convened by OSCHIE by:

(A)  Providing for appointments to the council by the Speaker of the House of Representatives and the Senate President;

(B)  Including a representative of federally qualified health centers; and

(C)  Replacing the Director of Commerce and Consumer Affairs with the Insurance Commissioner;

(5)  Changing the effective date to July 1, 2020, to encourage further discussion; and

(6)  Making technical, nonsubstantive changes for clarity, consistency, and style.

     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1782, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1782, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

RYAN I. YAMANE, Chair