CONFERENCE COMMITTEE REP. NO. 15

Honolulu, Hawaii

, 2019

RE: H.B. No. 1270

H.D. 1

S.D. 2

C.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 1270, H.D. 1, S.D. 2, entitled:

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

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Clarify that "private hospitals" means all currently operating hospitals, except hospitals operated by or affiliated with the Hawaii Health Systems Corporation and specified charitable hospitals;

(2) Increase the cap of the hospital sustainability fee to four percent of a hospital's net patient service revenue, net inpatient hospital service revenue, and net outpatient hospital service revenue;

(3) Remove the exemption from the hospital sustainability fee for outpatient care services for children's hospitals, rehabilitation and psychiatric hospitals, and other hospitals based on their annual net outpatient revenues;

(4) Extend the Program through fiscal biennium 2019-2021; and

(5) Appropriate funds out of the Hospital Sustainability Program Special Fund to the Department of Human Services to expend for authorized purposes under the Program.

Your Committee on Conference has amended this measure by:

(1) Inserting an appropriation amount of $88,000,000 for fiscal year 2019-2020 and fiscal year 2020-2021 for the purposes of the Hospital Sustainability Program Special Fund; and

(2) Changing the effective date to June 29, 2019; provided that sections 7 and 8 of this measure take effect on July 1, 2019.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 1270, H.D. 1, S.D. 2, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 1270, H.D. 1, S.D. 2, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ RUSSELL E. RUDERMAN Chair	____________________________ JOY A. SAN BUENAVENTURA Co-Chair
____________________________ ROSALYN H. BAKER Co-Chair	____________________________ JOHN M. MIZUNO Co-Chair
____________________________ GIL RIVIERE Co-Chair	____________________________ NADINE K. NAKAMURA Co-Chair