STAND. COM. REP. NO. 2683

Honolulu, Hawaii

RE:    S.B. No. 3064

       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 S.B. No. 3064, S.D. 1, 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 amend the transition process of the Hawaii Health Systems Corporation.

     More specifically, this measure:

     (1)  Authorizes the Hawaii Health Systems Corporation, a regional system, or a combined regional system of two or more regional systems to transition to a nonprofit hospital corporation incorporated in Hawaii before January 1, 2000;

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

     (3)  Requires the State to continue to meet all financial obligations to public employees, including all benefits, pensions, and other financial obligations negotiated with public employees' unions before the effective date of this measure.

     Your Committee received written comments in support of this measure from the Office of the Mayor of the County of Maui, Hawaii Health Systems Corporation, East Hawaii Regional Board of the Hawaii Health Systems Corporation, West Hawaii Regional Board of the Hawaii Health Systems Corporation, Kauai Regional Board of the Hawaii Health Systems Corporation, Kona Community Hospital, Kula Hospital and Clinic, Maui Health Leaders, Maui Memorial Medical Center, Maui Memorial Medical Center Medical Staff, and three individuals.  Written comments in opposition were received from the Hawaii Government Employees Association.   The Department of Budget and Finance and two individuals submitted written comments on the measure.

     Your Committee finds that, as currently structured, the Hawaii Health Systems Corporation is neither financially self-sufficient nor able to ensure the long-term delivery of quality health care services to the people of Hawaii, especially those on neighbor islands.  Your Committee believes that this measure provides the Hawaii Health Systems Corporation with the flexibility necessary to adapt to the changing health care environment and improve the standard of care in the State.

     Your Committee has amended this measure by changing the effective date 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 S.B. No. 3064, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 3064, S.D. 2.

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

____________________________

DAVID Y. IGE, Chair