STAND. COM. REP. NO. 978

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 Ways and Means, to which was referred S.B. No. 1443, S.D. 1, 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 address operational issues at the Hawaii State Hospital.

More specifically, this measure:

(1) Establishes 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) Authorizes 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) Exempts the Department of Health from chapter 103F, Hawaii Revised Statutes, 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 written comments in support of this measure from the Department of Health.

Your Committee finds that there is currently no standard rate of reimbursement for healthcare providers who provide medical care to patients under the custody of the Director of Health, as each rate is individually negotiated. Your Committee further finds that limiting reimbursement rates to the Medicaid fee schedule, which is a consistent and transparent standard, will save the State money and improve the timeliness of payments to providers.

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. 1443, S.D. 1, and recommends that it pass Third Reading.

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

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DONOVAN M. DELA CRUZ, Chair