STAND. COM. REP. NO.  732

Honolulu, Hawaii

                , 2015

RE:   H.B. No. 583

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 583, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO LONG-TERM CARE FACILITIES,"

begs leave to report as follows:

The purpose of this measure is to close the gap between long-term care facilities' costs and reimbursements for care of Medicaid patients by requiring the Department of Human Services to annually increase facilities' payment rates by applying a federally approved inflation factor to the provider's historical costs or basic prospective payment system rates.  

The Hawaii Health Systems Corporation, Hawaii Health Systems Corporation-Oahu Region, Healthcare Association of Hawaii, The Queen's Health Systems, Aloha Nursing Rehab Centre, Hale Makua Health Services, Ohana Pacific Management Company, Inc., One Kalakaua Senior Living, and numerous individuals supported this measure.  The Department of Human Services provided comments.

     As affirmed by the record of votes of the members of your Committee on Finance that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 583, H.D. 1, and recommends that it pass Third Reading.

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

____________________________

SYLVIA LUKE, Chair