STAND. COM. REP. NO. 2380

Honolulu, Hawaii

RE:    S.B. No. 3064

       S.D. 1

Honorable Donna Mercado Kim

President of the Senate

Twenty-Seventh State Legislature

Regular Session of 2014

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 3064 entitled:

"A BILL FOR AN ACT RELATING TO HAWAII HEALTH SYSTEMS CORPORATION,"

begs leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Allow for the transition of the Hawaii Health Systems Corporation, a regional system, to a nonprofit hospital corporation incorporated in Hawaii before January 1, 2000;

     (2)  Require the nonprofit hospital corporation to maintain equivalent services in acquired regions for no less than five years; and

     (3)  Require the State to continue to be responsible for certain liabilities of the Corporation related to collective bargaining contracts negotiated by the State before the effective date of this measure.

     Your Committee received testimony in support of this measure from the Office of the Governor; Hawaii Health Systems Corporation; Hawaii Health Systems Corporation, West Kauai Region; Hawaii Health Systems Corporation, Maui Region; Hawaii Health Systems Corporation, East Hawaii Region; Hilo Medical Center; Maui Memorial Medical Center; Hawaii Health Systems Corporation, East Hawaii Regional Board; Hawaii Health Systems Corporation, West Hawaii Regional Board; ILWU Local 142; Pradeepta Chowdhury M.D., LLC; and several individuals.

     Your Committee finds that the current structure of the Hawaii Health Systems Corporation is not sustainable for the long-term delivery of quality health care services for residents, especially those on neighbor islands.  Your Committee further finds that the shortage of physicians is growing in Hawaii, with critical services in jeopardy.  This measure provides a major transformation to the State's health care system to improve the standard of care in Hawaii.

     Your Committee has amended this measure by making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     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 S.B. No. 3064, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 3064, S.D. 1, and be referred to the Committee on Ways and Means.

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

____________________________

JOSH GREEN, Chair