STAND. COM. REP. NO. 577

Honolulu, Hawaii

, 2019

RE: H.B. No. 1449

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committees on Human Services & Homelessness and Health, to which was referred H.B. No. 1449 entitled:

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

beg leave to report as follows:

The purpose of this measure is to:

(1) Extend the Nursing Facility Sustainability Fee Program to 2021;

(2) Allow the nursing facility sustainability fee to be used to enhance capitated rates to pay for quality incentives;

(3) Increase the fee limit to 5.5 percent of a nursing facility's net patient service revenue;

(4) Increase the per resident daily maximum fee and per resident reduced daily maximum fee for certain facilities; and

(5) Appropriate funds to support the Nursing Facility Sustainability Fee Program.

The Department of Human Services, East Hawaii Region of the Hawaii Health Systems Corporation, The Queen's Health Systems, Hawaii Medical Service Association, Healthcare Association of Hawaii, and O‘ahu County Committee on Legislative Priorities of the Democratic Party of Hawai‘i supported this measure.

Your Committees have amended this measure by:

(1) Clarifying that nursing facilities affiliated with the Hawaii Health Systems Corporation are exempt from the nursing facility sustainability fee;

(2) Changing the amount appropriated to an unspecified amount; and

(3) Changing its effective date to January 1, 2059, to encourage further discussion.

As affirmed by the records of votes of the members of your Committees on Human Services & Homelessness and Health that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 1449, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 1449, H.D. 1, and be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committees on Human Services & Homelessness and Health,

______________________________ JOHN M. MIZUNO, Chair

______________________________ JOY A. SAN BUENAVENTURA, Chair