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THE SENATE |
S.B. NO. |
416 |
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TWENTY-SIXTH LEGISLATURE, 2011 |
S.D. 1 |
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STATE OF HAWAII |
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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 the Hawaii health systems corporation is the fourth largest public hospital system in the nation and that the Hawaii health systems corporation operates public health care facilities that provide essential safety-net hospital and long-term care services throughout the State.
The legislature also finds that there is a shortage of long-term care beds in many areas of the state, including Oahu. This shortage places an undue burden on the acute care hospitals, which have a wait list of patients who need to be placed in long-term care beds. The wait list problem presents quality of care issues for the wait-listed patients and the patients who need an acute care bed where none are available. The closing of Hawaii Medical Center exasperated this problem by eliminating a large number of long-term care beds, along with the elimination of other needed services. While some beds are empty at Leahi hospital, a Hawaii health systems corporation facility, Leahi hospital needs a major renovation. Furthermore, the number and various types of beds eliminated by the closing of Hawaii Medical Center cannot be fully accommodated by the existing facilities.
Accordingly, the legislature finds that it is in the public interest to establish a public-private partnership between the owners of the facility previously known as Hawaii Medical Center East (located on Liliha Street in Honolulu) and the Hawaii health systems corporation in order to provide long-term care and other health care services.
The purpose of this Act is to authorize the Hawaii health systems corporation to bring the Hawaii Medical Center East facility under its governance through formal affiliation, acquisition, or both, and to appropriate the necessary funding.
SECTION 2. Chapter 323F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§323F- Assimilation of Hawaii Medical Center East. (a) The Hawaii Medical Center East facility on Oahu may be assimilated into the Hawaii health systems corporation in a manner and to an extent that may be negotiated between the corporation and the owners. Assimilation may be accomplished with the creation of a new entity, a partnership, a long-term lease, or any other legal vehicle determined to be in the best interests of the public by the corporation's board of directors and as negotiated with the owners. After assimilation, Hawaii Medical Center East shall be operated by the corporation either directly, through contractors, or through a subsidiary.
(b) None of the liabilities of Hawaii Medical Center East shall become liabilities of the corporation.
(c) The Hawaii Medical Center East facility, once assimilated, shall be exempt from chapter 102 and section 103-53 and its board of directors, if any, shall be exempt from part I of chapter 92.
(d) The purchase of goods and services by or on behalf of Hawaii Medical Center East, after assimilation, shall be exempt from chapters 103D and 103F.
(e) The assimilation shall be exempt from part VII of chapter 323D, relating to hospital acquisition."
SECTION 3. There is appropriated out of the general revenues of the State of Hawaii the sum of $ or so much thereof as may be necessary for fiscal year 2012-2013 for the purposes of this Act, including hiring or contracting the necessary staff.
The sum appropriated shall be expended by the Hawaii health systems corporation for the purposes of this Act.
SECTION 4. New statutory material is underscored.
SECTION 5. This Act shall take effect on July 1, 2012.
Report Title:
Hawaii Health Systems Corporation; Hawaii Medical Center East; Affiliation; Acquisition; Appropriation
Description:
Authorizes the Hawaii Health Systems Corporation to bring the Hawaii Medical Center East facility under its governance through formal affiliation, acquisition, or both. Appropriates necessary funds. (SD1)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.