STAND. COM. REP. NO.  841

Honolulu, Hawaii

                , 2017

RE:   H.B. No. 89

      H.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No. 89, H.D. 1, entitled:

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

begs leave to report as follows:

The purpose of this measure is to preserve access to health care for Medicaid recipients by:

(1)  Extending the Hospital Sustainability Program for two years and updating statutory references accordingly;

(2)  Clarifying that the rate of the outpatient hospital sustainability fee shall not exceed three percent of net outpatient hospital service revenue;

(3)  Allowing the Department of Human Services (DHS) to exclude any facility from the hospital sustainability fee on outpatient care services if its exclusion is required to meet federal standards of approval; and

(4)  Appropriating funds out of the Hospital Sustainability Program Special Fund for Fiscal Year 2017-2018 and Fiscal Year 2018-2019.

DHS, Hawaii Health Systems Corporation, The Queen's Health Systems, Healthcare Association of Hawaii, Hawai‘i Pacific Health, The Chamber of Commerce Hawaii, and Legacy of Life Hawai‘i supported this measure.

     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. 89, 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