STAND. COM. REP. NO. 2205

Honolulu, Hawaii

RE:    S.B. No. 2213

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

Sir:

     Your Committees on Human Services and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 2213 entitled:

"A BILL FOR AN ACT RELATING TO THE NURSING FACILITY SUSTAINABILITY PROGRAM,"

beg leave to report as follows:

     The purpose and intent of this measure is to continue the nursing facility sustainability program for fiscal year 2016-2017.

     Your Committees received testimony in support of this measure from the Department of Human Services, Chamber of Commerce Hawaii, Hawaii Primary Care Association, Healthcare Association of Hawaii, and The Queen's Health Systems.

     Your Committees find that Medicaid patients comprise the majority of nursing facilities' patient population.  In recognition of the fact that Medicaid reimbursements are below the actual costs of care, the Legislature enacted the nursing facility sustainability program in 2012 to supplement Medicaid reimbursements to long-term care facilities by assessing a fee on certain long-term care facilities, using funds from the fees to obtain additional federal monies, then distributing those monies to the long-term care facilities based on utilization of services by Medicaid patients.  The nursing facility sustainability program has successfully helped Hawaii's nursing facilities offset losses, and this measure will enable the program to continue supporting the crucial services provided by these facilities.

     Your Committees find that sustaining nursing facilities statewide is crucial for continued access to resources needed by the residents of Hawaii.  A sustainable hospital network and health care industry is vital to the health of Hawaii's residents.  Your Committees also find that Medicaid payments are below the actual costs of care and the nursing facility sustainability program increases Medicaid payments to nursing facilities.  The nursing facility sustainability program has helped Hawaii nursing facilities to offset some of the losses they incur taking care of the most underserved.

     Your Committees have amended this measure by:

     (1)  Deleting an amendment to Act 156, Session Laws of Hawaii 2012, section 5, as amended, that would have changed the repeal date of certain amendments to section 36-30(a), Hawaii Revised Statutes, to December 31, 2017; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     As affirmed by the records of votes of the members of your Committees on Human Services and Commerce, Consumer Protection, and Health that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 2213, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 2213, S.D. 1, and be referred to your Committee on Ways and Means.

Respectfully submitted on behalf of the members of the Committees on Human Services and Commerce, Consumer Protection, and Health,

________________________________ ROSALYN H. BAKER, Chair

________________________________ SUZANNE CHUN OAKLAND, Chair