STAND. COM. REP. NO. 3381

Honolulu, Hawaii

RE:    H.B. No. 2277

       H.D. 1

       S.D. 2

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Ways and Means, to which was referred H.B. No. 2277, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HEALTH CARE TRANSFORMATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to establish and fund a permanent health care transformation program.

     Specifically, this measure:

(1)  Transfers the Office of Health Care Transformation from the Office of the Governor to the State Health Planning and Development Agency of the Department of Health;

(2)  Changes the name of the State Health Planning and Development Agency to the Hawaii Health Care Planning and Policy Authority; and

(3)  Establishes a special fund for the Office of Health Care Transformation.

     Your Committee received written comments in support of this measure from the Office of the Governor, Department of Health, East Hawaii Regional Chief Executive Officer of the Hawaii Health Systems Corporation, Hawaii Health Information Exchange, Ho'ola Lahui Hawaii, Hawaii Medical Service Association, Hawaii Association of Health Plans, The Queens Health Systems, Hawaii Pacific Health, Hawaii Primary Care Association, and two individuals.

     Your Committee finds that the health care transformation program is temporarily placed within the Office of the Governor.  Your Committee believes that establishing a permanent Office of Health Care Transformation is instrumental to the health and well-being of Hawaii's residents.  Your Committee also finds that the State Health Planning and Development Agency, in its expanded role as the Hawaii Health Care Planning and Policy Authority, will be able to expand its oversight across a wider range of health care issues, thus strengthening health care delivery in Hawaii.

     Your Committee has amended this measure by:

(1)  Amending other sections and a part title of chapter 323D, Hawaii Revised Statutes, for consistency or conformity with this measure;

(2)  Consolidating related provisions, deleting unnecessary or redundant language, and clarifying or correcting words, terms, and references;

(3)  Changing the appropriation for the Health Transformation Coordinator to carry out the purposes of the health care transformation program to an unspecified amount; and

(4)  Changing all effective dates to July 1, 2050, to facilitate further discussion on the measure.

     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. 2277, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 2277, H.D. 1, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair