STAND. COM. REP. NO. 1647

Honolulu, Hawaii

, 2019

RE: S.B. No. 463

S.D. 2

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 S.B. No. 463, S.D. 2, entitled:

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

beg leave to report as follows:

The purpose of this measure is to:

(1) Extend the Hospital Sustainability Program to 2021;

(2) 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;

(3) 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;

(4) 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; and

(5) Appropriate funds from the Hospital Sustainability Program Special Fund.

The Department of Human Services, Healthcare Association of Hawaii, The Queen’s Health Systems, Kaiser Permanente Hawai‘i, Hawai‘i Pacific Health, The Chamber of Commerce Hawaii, Hawaii Medical Service Association, and an individual supported this measure.

Your Committees have amended this measure by:

(1) Changing its effective date to January 1, 2059, to encourage further discussion on this measure, and changing effective dates for specific sections to July 1, 2019; and

(2) Making technical, nonsubstantive amendments for clarity, consistency, and style.

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 S.B. No. 463, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 463, S.D. 2, 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