STAND. COM. REP. NO. 48

Honolulu, Hawaii

RE:    S.B. No. 285

       S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sir:

     Your Committees on Human Services and Commerce, Consumer Protection, and Health, to which was referred S.B. No. 285 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:

     (1)  Continue the nursing facility sustainability program for one year; and

     (2)  Appropriate funds out of the nursing facility sustainability program special fund for fiscal year 2017-2018.

     Your Committees received testimony in support of this measure from the Department of Human Services, Hawaii Health Systems Corporation, East Hawaii Region of the Hawaii Health Systems Corporation, Chamber of Commerce Hawaii, The Queen's Health Systems, Healthcare Association of Hawaii, Hawai‘i Pacific Health, and one individual.

     Your Committees find that nursing facilities in the State face major financial challenges in providing quality long-term care for Hawaii residents.  As a result, the Legislature created the nursing facility sustainability program to increase Medicaid payments to nursing facilities in recognition that Medicaid payments to nursing facilities are below the actual costs of care.  The additional federal funds obtained via the fee program authorized by the nursing facility sustainability program have helped to reduce the amount of losses incurred by long-term care facilities and maintain access to care for Medicaid recipients.  Because the majority of residents in Hawaii's nursing facilities are Medicaid enrollees, the nursing facility sustainability program ensures that they have access to quality care.

     Your Committees have amended this measure by:

     (1)  Extending the nursing facility sustainability program until June 30, 2019;

     (2)  Inserting language that appropriates funds out of the nursing facility sustainability program special fund for fiscal year 2018-2019; and

     (3)  Making a technical, nonsubstantive amendment 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. 285, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 285, 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

________________________________ JOSH GREEN, Chair