STAND. COM. REP. NO. 2182

Honolulu, Hawaii

RE:    S.B. No. 2064

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committee on Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2064 entitled:

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

begs leave to report as follows:

     The purpose and intent of this measure is to appropriate funds to restore staff and long-term care services at Leahi and Maluhia hospitals within the Hawaii Health Systems Corporation.

     Your Committee received testimony in support of this measure from the Hawaii Health Systems Corporation, Oahu Region; United Public Workers, AFSCME, Local 646; and nineteen individuals.  Your Committee received comments on this measure from one individual.

     Your Committee finds that Leahi and Maluhia hospitals, two state-run long-term care facilities within the Oahu Region of the Hawaii Health Systems Corporation, have served for many years as a safety net for working class families.  Both hospitals serve the highest number of individuals on Medicare and Medicaid, while reimbursements for care provided continue to decline.  It is nearly impossible for Leahi and Maluhia hospitals to recover the actual costs of providing quality care without the support of government funding, as the current cost of care per person is $400 per day and the reimbursement per person is $200 per day.

     Your Committee further finds that Leahi and Maluhia hospitals were forced to cut sixty-four staff positions and temporarily halt new admissions to remain operational due to an estimated $3,700,000 deficit in fiscal year 2016.  Furthermore, some residents experienced displacement to other facilities because of reduced services and a loss of seventy-six resident beds.  It is critical to restore these staff positions and long-term care services for Hawaii's working class families in order to provide quality care for the State's kupuna population.

     As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection, and Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 2064 and recommends that it pass Second Reading and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection, and Health,

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ROSALYN H. BAKER, Chair