STAND. COM. REP. NO. 260

Honolulu, Hawaii

, 2023

RE: H.B. No. 517

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Health & Homelessness, to which was referred H.B. No. 517 entitled:

"A BILL FOR AN ACT RELATING TO HEALTH DATA SHARING,"

begs leave to report as follows:

The purpose of this measure is to:

(1) Establish a Hawaii Health Data Exchange framework within the Department of Health to accelerate and expand the exchange of health information among health care entities and government agencies in the State; and

(2) Establish a stakeholder advisory group to assist the Department of Health with developing the Hawaii Health Data Exchange framework.

Your Committee received testimony in support of this measure from the Department of Health, Office of the Mayor of the County of Hawai‘i, Hawaii Medical Association, and Hawai‘i Medical Service Association. Your Committee received testimony in opposition to this measure from the State Procurement Office. Your Committee received comments on this measure from the Healthcare Association of Hawaii, Hawaii Association of Health Plans, Hawai‘i Health Information Exchange, The Queen's Health System, Kaiser Permanente Hawai‘i, Hawai‘i Pacific Health, and one individual.

Your Committee finds that the ability to securely and efficiently exchange patient health information electronically is vitally important to improving health outcomes, reducing health care costs, and connecting health care providers together to enhance care coordination. Your Committee further finds that data-driven efforts to better coordinate human and social supports with the medical and health care sectors provide opportunities to address health equity issues by delivering services that are more client-centered, efficient, effective, and tailored. This measure is intended to improve patient care, reduce costs, and improve health equity by establishing a Hawaii Health Data Exchange framework to provide payers and providers with timely, actionable data.

Your Committee has amended this measure by:

(1) Extending the deadline for the Department of Health to establish a Hawaii Health Data Exchange framework and work with necessary state agencies and stakeholders on or before September 1, 2030;

(2) Extending the deadline by which certain health care organizations are required to execute the Hawaii Health Data Exchange framework to on or before September 1, 2030;

(3) Extending the deadline by which certain health care organizations are required to exchange health information, or provide access to health information, to on or before September 1, 2032;

(4) Extending the deadline by which certain health care organizations are required to exchange health information to and from certain health care entities for treatment, payment, or health care operations to on or before January 31, 2034;

(5) Specifying that the Department of Health is required to establish a working group, rather than a stakeholder advisory group, to advise on legislation developing and implementing the Hawaii Health Data Exchange framework;

(6) Changing the effective date to June 30, 3000, to encourage further discussion; and

(7) Making technical, nonsubstantive amendments for the purposes of clarity, consistency, and style.

Your Committee notes that California appropriated $250,000,000 to implement a similar health data exchange framework, which your Committee acknowledges is a considerable financial undertaking. Your Committee respectfully requests your Committee on Finance, should it deliberate on this measure, to consider an appropriate appropriation amount for the Hawaii Health Data Exchange framework.

As affirmed by the record of votes of the members of your Committee on Health & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 517, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 517, H.D. 1, and be referred to your Committee on Consumer Protection & Commerce.

Respectfully submitted on behalf of the members of the Committee on Health & Homelessness,

____________________________

DELLA AU BELATTI, Chair