STAND. COM. REP. NO. 331

Honolulu, Hawaii

RE: S.B. No. 1443

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. 1443 entitled:

"A BILL FOR AN ACT RELATING TO THE DEPARTMENT OF HEALTH,"

begs leave to report as follows:

The purpose and intent of this measure is to:

(1) Establish maximum rates of payment for medical care for patients of the Hawaii State Hospital or of another psychiatric facility who are under the custody of the Director of Health;

(2) Authorize the Department of Health to establish long-term care payment rates for patients discharged to a long-term care facility from the Hawaii State Hospital or another psychiatric facility where they were under the custody of the Director of Health; and

(3) Exempt the Department of Health from chapter 103F, Hawaii Revised Statutes, that governs the procurement of health and human services, for the procurement of medical care and long-term care for patients who are or were under the custody of the Director of Health at the Hawaii State Hospital or a psychiatric facility.

Your Committee received testimony in support of this measure from the Department of Health.

Your Committee finds that the Hawaii State Hospital has a number of patients that are psychiatrically stable, legally cleared for hospital discharge, and have long-term care needs that are more appropriate for community-based residential care than in-patient psychiatric hospitalization. Your Committee further finds that no long-term care provider has agreed to accept these patients at Medicaid rates, resulting in the Hawaii State Hospital becoming the State's default long-term care facility. This measure addresses the financial obstacles relating to payment rates for patients of or discharged from the Hawaii State Hospital to help patients at the Hawaii State Hospital be cared for in the most appropriate setting.

Your Committee has amended this measure by:

(1) Inserting an effective date of December 31, 2050, to encourage further discussion; and

(2) 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. 1443, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1443, S.D. 1, and be referred to your Committee on Ways and Means.

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

________________________________

JOY A. SAN BUENAVENTURA, Chair