HB2341.DOC

SECTION 1. Act 217, Session Laws of Hawaii 2012, as amended by section 1 of Act 141, Session Laws of Hawaii 2013, as amended by section 1 of Act 123, Session Laws of Hawaii 2014, and as amended by section 1 of Act 70, Session Laws of Hawaii 2015, as applicable, is amended by amending section 2 as follows:

(1) By amending the definitions of "net patient service revenue" and "private hospital" in section -3, Hawaii Revised Statutes, to read as follows:

""Net patient service revenue" means gross revenue from inpatient and outpatient care provided to hospital patients converted to net patient revenue utilizing data from Worksheets G-2 and G-3 of each hospital's medicare cost report for fiscal year [~~2012-2013.~~] 2013-2014. If the hospital is new or did not file a fiscal year medicare cost report, the department shall obtain the hospital's net patient service revenue from the most recent period available.

"Private hospital" means those non-public hospitals named in attachment A of the medicaid section 1115 demonstration waiver that were in operation in calendar year [~~2014~~] 2015 and are currently operating."

(2) By amending subsections (c) and (d) of section -5, Hawaii Revised Statutes, to read as follows:

"(c) The hospital sustainability fee for inpatient care services may differ from the fee for outpatient care services but the fees shall not in the aggregate exceed three per cent of net patient service revenue as derived from the hospital's medicare cost report ending during state fiscal year [~~2012-2013.~~] 2013-2014. The inpatient hospital sustainability fee shall be 1.892 per cent of net inpatient hospital service revenue. The outpatient hospital sustainability fee shall be three per cent of net outpatient hospital service revenue. Each fee shall be the same percentage for all affected hospitals, subject to subsection (d).

(d) The department shall exempt children's hospitals, federal hospitals, public hospitals, rehabilitation hospitals, and psychiatric hospitals, and any hospital that was not in private operation during any part of calendar year [~~2014~~] 2015 from the hospital sustainability fees on inpatient services. In addition, the department shall exempt hospitals with net outpatient revenue of less than $50,000,000 per year (based on fiscal year [~~2012-2013~~] 2013-2014 reports) and public hospitals, and any hospital that was not in private operation during any part of calendar year [~~2014~~] 2015 from the hospital sustainability fee on outpatient care services."

(3) By amending section -10, Hawaii Revised Statutes, as follows:

(A) By amending subsection (a) to read as follows:

"(a) The department shall use moneys solely from the hospital sustainability program special fund to make direct payments to private hospitals, pursuant to the terms of the section 1115 waiver, in an amount equal to $88,000,000 to cover the uncompensated care costs incurred by private hospitals for serving medicaid and uninsured individuals during state fiscal year [~~2015-2016.~~] 2016-2017."

(B) By amending subsection (d) to read as follows:

"(d) Each eligible hospital's quarterly payment shall be equal to one-quarter of its prorated share of uncompensated care costs for the fiscal year in which payment is made, as derived from the uncompensated care costs reported by all private hospitals for fiscal year [~~2012-2013;~~] 2013-2014; provided that:

(1) Outpatient uncompensated care costs shall be reimbursed at one hundred per cent of reported uncompensated care costs; and

(2) Inpatient uncompensated care costs shall be reimbursed on a prorated share based on the remaining uncompensated care amounts available through the section 1115 waiver."

SECTION 2. Act 217, Session Laws of Hawaii 2012, as amended by section 2 of Act 141, Session Laws of Hawaii 2013, as amended by section 2 of Act 123, Session Laws of Hawaii 2014, and as amended by section 2 of Act 70, Session Laws of Hawaii 2015, is amended by amending section 5 to read as follows:

"SECTION 5. This Act shall take effect on July 1, 2012, and shall be repealed on June 30, [~~2016;~~] 2017; provided that section -4, Hawaii Revised Statutes, in section 2 of this Act, and the amendment to section 36-30(a), Hawaii Revised Statutes, in section 3 of this Act, shall be repealed on December 31, [~~2016;~~] 2017; provided further that the amendment to section 36-30(a), Hawaii Revised Statutes, in section 3 of this Act, shall not be repealed when section 36-30, Hawaii Revised Statutes, is reenacted on June 30, 2015 pursuant to section 34(3) of Act 79, Session Laws of Hawaii 2009."

SECTION 3. Act 123, Session Laws of Hawaii 2014, as amended by section 3 of Act 70, Session Laws of Hawaii 2015, is amended by amending section 7 to read as follows:

"SECTION 7. This Act shall take effect on June 29, 2014; provided that:

(1) Section 5 shall take effect on July 1, 2014;

(2) The amendments made to sections 36-27(a) and 36-30(a), Hawaii Revised Statutes, in sections 3 and 4 of this Act shall not be repealed when sections 36-27 and 36-30, Hawaii Revised Statutes, are reenacted on June 30, 2015, pursuant to section 34 of Act 79, Session Laws of Hawaii 2009; and

(3) The amendments made to sections 36-27(a) and 36-30(a), Hawaii Revised Statutes, in sections 3 and 4 of this Act shall be repealed on December 31, [~~2016.~~] 2017."

SECTION 4. There is appropriated out of the hospital sustainability program special fund the sum of $50,000,000 or so much thereof as may be necessary for fiscal year 2016-2017 to be used for the purposes of the hospital sustainability program special fund.

The sum appropriated shall be expended by the department of human services for the purposes of this Act.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act, upon its approval, shall take effect on July 1, 2016; provided that sections 1, 2, and 3 of this Act shall take effect on June 29, 2016.

INTRODUCED BY:

_____________________________

BY REQUEST

HOUSE OF REPRESENTATIVES	H.B. NO.	2341
TWENTY-EIGHTH LEGISLATURE, 2016
STATE OF HAWAII