STAND. COM. REP. NO. 1007

Honolulu, Hawaii

RE: S.B. No. 1441

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2025

State of Hawaii

Sir:

Your Committees on Judiciary and Ways and Means, to which was referred S.B. No. 1441, S.D. 1, 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,"

beg leave to report as follows:

The purpose and intent of this measure is to:

(1) Extend the transfer of the Oahu Regional Health Care System from the Hawaii Health Systems Corporation to the Department of Health to December 31, 2029; and

(2) Require the Oahu Regional Health Care System to enter into an agreement with the Department of Health regarding Oahu Regional Health Care System providing care to low acuity patients in the Department's custody by December 31, 2029.

Your Committees received testimony in support of this measure from the Department of Health and Hawaii Health Systems Corporation.

Your Committees received testimony in opposition to this measure from one individual.

Your Committees received comments on this measure from the Oahu Region Hawaii Health Systems Corporation.

Your Committees find that Act 212, Session Laws of Hawaii 2021, as amended by Act 150, Session Laws of Hawaii 2022, mandated the transfer of the Oahu Regional Health Care System from the Hawaii Health Systems Corporation to the Department of Health. Your Committees further find that on December 30, 2021, the Department of Health submitted a report to the Legislature that included a consultant's assessment of the transition plans and associated costs of incorporating the Oahu Regional Health Care System into the Department. The report detailed the complexity of the transition, the associated cost, and the estimated timeline, with the transition cost estimated at $10,300,000 with an annual post-transition cost of $5,000,000. Your Committees believe that the intended goals of the transfer can still be achieved without a costly transition. This measure will more strategically utilize state resources to effectuate the intended purpose of Act 212, Session Laws of Hawaii 2021, as amended by Act 150, Session Laws of Hawaii 2022.

Your Committees have amended this measure by:

(1) Inserting legislative findings;

(2) Deleting language that would have:

(A) Amended 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; and

(B) Extended 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;

(3) Inserting language that:

(A) Repeals the transfer of the Oahu Regional Health Care System from the Hawaii Health Systems Corporation to the Department of Health; and

(B) Repeals amendments to the Hawaii Revised Statutes made by Act 212, Session Laws of Hawaii 2021;

(4) Requiring the Oahu Regional Health Care System and the Department of Health to:

(A) Enter into an agreement regarding the care of patients transferred from the Hawaii State Hospital to an appropriate Oahu Regional Health Care System facility, subject to certain conditions; and

(B) Submit a report to the Legislature; and

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

As affirmed by the records of votes of the members of your Committees on Judiciary and Ways and Means that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 1441, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 1441, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Judiciary and Ways and Means,

________________________________ DONOVAN M. DELA CRUZ, Chair

________________________________ KARL RHOADS, Chair