STAND. COM. REP. NO. 1115

Honolulu, Hawaii

RE:    H.B. No. 879

       H.D. 2

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2013

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 879, H.D. 2, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HOSPITAL SUSTAINABILITY PROGRAM,"

begs leave to report as follows:

     The purpose and intent of this measure is to increase the sustainability of private hospitals in the State.

More specifically, this measure:

(1)  Extends the sunset date of the Hospital Sustainability Program for another year, to June 30, 2014;

(2)  Adjusts fiscal year references and the disposition of revenues from the hospital sustainability program special fund; and

(3)  Appropriates funds out of the hospital sustainability program special fund.

     Your Committee received written comments in support of this measure from the Department of Human Services, Hawaii Pacific Health, Healthcare Association of Hawaii, and the United Public Workers.

     Your Committee finds that extending the Hospital Sustainability Program will enable the Department of Human Services to continue making supplemental payments to hospitals in order to assist the hospitals in offsetting their costs of uncompensated care and thereby increasing their sustainability.

     As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 879, H.D. 2, S.D. 1, and recommends that it pass Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

DAVID Y. IGE, Chair