STAND. COM. REP. NO. 1105

Honolulu, Hawaii

RE: S.B. No. 463

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirtieth State Legislature

Regular Session of 2019

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 463, S.D. 1, entitled:

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

begs leave to report as follows:

The purpose and intent of this measure is to extend the hospital sustainability program for two years until 2021.

This measure also raises the ceiling for the hospital sustainability fee and appropriates funds from the hospital sustainability program special fund for the purposes of the special fund.

Your Committee received written comments in support of this measure from the Department of Human Services, Healthcare Association of Hawaii, and The Queen's Health Systems.

Your Committee finds that the loss of sustainability funds would have a dramatic negative impact on hospitals.

Your Committee notes that a special fund appropriation of $75,000,000 is needed in each year of fiscal biennium 2019-2021 to continue this program.

Your Committee has amended this measure by:

(1) Changing the hospital sustainability program special fund appropriation to an unspecified amount; and

(2) Changing the effective date of the appropriation to July 1, 2050, to facilitate further discussion on the measure.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 463, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 463, S.D. 2.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

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DONOVAN M. DELA CRUZ, Chair