STAND. COM. REP. NO. 581

Honolulu, Hawaii

RE: S.B. No. 1441

S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred S.B. No. 1441 entitled:

"A BILL FOR AN ACT RELATING TO THE TRANSITION OF THE OAHU REGIONAL HEALTH CARE SYSTEM FROM THE HAWAII HEALTH SYSTEMS CORPORATION INTO THE DEPARTMENT OF HEALTH,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Repeal the requirement to transfer the Oahu Regional Health Care System from the Hawaii Health Systems Corporation to the Department of Health;

(2) Repeal certain amendments to the Hawaii Revised Statutes that were made by Act 212, Session Laws of Hawaii 2021; and

(3) Require the Oahu Regional Health Care System to enter into an agreement with the Department of Health regarding the Oahu Regional Health Care System taking care of low acuity patients in the Department's custody by December 31, 2025.

Your Committee received testimony in support of this measure from the Department of Health and Oahu Regional Health Care System.

Your Committee finds that Act 212, Session Laws of Hawaii 2021, required the transfer of the Oahu Regional Health Care System (Oahu Region) from the Hawaii Health Systems Corporation to the Department of Health due to the logistical complexities of the Oahu Region facilities and the limited but crucial nature of the services these facilities, Leahi Hospital and Maluhia, currently provide. Your Committee further finds that a report submitted by the Department of Health to the Legislature at the end of 2021 detailed the complexity and high costs of this transfer, which was estimated at $10.3 million, with an annual post-transition cost of $5 million. As the transfer deadline approaches, significant concerns remain over the details of the transfer of Oahu Region to the Department of Health. Therefore, this measure repeals the transfer of the Oahu Regional Health Care System. Your Committee believes further discussions are necessary to ensure the continuity of services for patients utilizing services at the Oahu Regional Health Care System.

Accordingly, your Committee has amended this measure by:

(1) Deleting language that would have repealed the transfer of the Oahu Regional Health Care System from the Hawaii Health Systems Corporation to the Department of Health;

(2) Inserting language amending Act 212, Session Laws of Hawaii 2021, as amended by Act 150, Session Laws of Hawaii 2022, to extend the transfer of the Oahu Regional Health Care System from the Hawaii Health Systems Corporation to the Department of Health from December 31, 2025, to December 31, 2029;

(3) Deleting language that would have repealed amendments to the Hawaii Revised Statutes made by Act 212, Session Laws of Hawaii 2021;

(4) Extending the deadline for the Oahu Regional Health Care System and the Department of Health to enter into an agreement regarding the Oahu Regional Health Care System providing care of low acuity patients in the Department of Health's custody from December 31, 2025, to December 31, 2029; and

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

As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1441, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1441, S.D. 1, and be referred to your Committees on Judiciary and Ways and Means.

Respectfully submitted on behalf of the members of the Committee on Health and Human Services,

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JOY A. SAN BUENAVENTURA, Chair