Report Title:
SHPDA; Monitoring; Administrator; Certificate of Need Exemptions; Office Transfer
Description:
Authorizes SHPDA to monitor and audit services for persons with developmental disabilities or mental retardation; authorizes SHPDA administrator to appoint staff; removes projects dedicated to meeting the State's obligations under court orders from exemptions from certificates of need requirements; transfers the office of health care assurance to SHPDA.
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THE SENATE |
S.B. NO. |
3022 |
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TWENTY-FIRST LEGISLATURE, 2002 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to health.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that the Hawaii state health planning and development agency (SHPDA) serves as a monitoring agency that helps protect the citizens of Hawaii from potential redundant, excessive, cost-inefficient, or inappropriate healthcare services or facilities in our community, in which the certificate of need program is a vital tool. In addition, SHPDA is responsible, under chapter 323D, Hawaii Revised Statutes (HRS), for developing and producing the health services and facilities plan, which addresses the healthcare needs of the State, including inpatient care, healthcare facilities, and community special needs based on performance outcomes, and standards of utilization and quality. More importantly, the plan provides the basis for the certificate of need program.
The legislature further finds that the health care needs of Hawaii go beyond any projects that are dedicated to meeting the State's obligations under court orders, and the State has a responsibility to apply chapter 323D, HRS, to all providers of inpatient care, healthcare facilities, and community special needs projects, without exemption, both equally and fairly.
In addition, the legislature finds that the office of health care assurance, which is responsible for permits and licensing for the department of health, may be in conflict, as the department is responsible for licensing the same facilities it contracts with for health care services. Moving the licensing and regulatory functions from the direct reporting lines of the department of health to SHPDA – an agency of state government attached to the department of health for administrative purposes only – removes the perceived conflict of interest that currently exists.
The purposes of this Act are to authorize SHPDA to monitor and audit services for persons with developmental disabilities or mental retardation; to authorize the SHPDA administrator to appoint staff; to remove the certificate of need exemption for projects that are wholly dedicated to meeting the State's obligations under court orders, including consent decrees; and to transfer the office of health care assurance from the department of health to SHPDA.
SECTION 2. Chapter 333F, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:
"§333F- Monitoring. The state health planning and development agency shall monitor and may audit the services for persons with developmental disabilities or mental retardation."
SECTION 3. Section 323D-11, Hawaii Revised Statutes, is amended to read as follows:
"§323D-11 State health planning and development agency. (a) There is established within the department of health for administrative purposes only, the state health planning and development agency. The state agency shall be headed by an administrator who shall be appointed by the governor subject to section 26-34. The administrator may employ persons not subject to chapters 76.
(b) The state agency shall administer the state health planning and cost containment activities as required by law. The state agency shall monitor and may audit the services for persons with developmental disabilities or mental retardation pursuant to chapter 333F."
SECTION 4. Section 323D-54, Hawaii Revised Statutes, is amended to read as follows:
"§323D-54 Exemptions from certificate of need requirements. Nothing in this part or rules with respect to the requirement for certificates of need applies to:
(1) Offices of physicians, dentists, or other practitioners of the healing arts in private practice as distinguished from organized ambulatory health care facilities, except in any case of purchase or acquisition of equipment attendant to the delivery of health care service and the instruction or supervision for any private office or clinic involving a total expenditure in excess of the expenditure minimum;
(2) Laboratories, as defined in section 321-11(12), except in any case of purchase or acquisition of equipment attendant to the delivery of health care service and the instruction or supervision for any laboratory involving a total expenditure in excess of the expenditure minimum;
(3) Dispensaries and first aid stations located within business or industrial establishments and maintained solely for the use of employees; provided such facilities do not regularly provide inpatient or resident beds for patients or employees on a daily twenty-four-hour basis;
(4) Dispensaries or infirmaries in correctional or educational facilities;
(5) Dwelling establishments, such as hotels, motels, and rooming or boarding houses that do not regularly provide health care facilities or health care services;
(6) Any home or institution conducted only for those who, pursuant to the teachings, faith, or belief of any group, depend for healing upon prayer or other spiritual means;
(7) Dental clinics;
(8) Nonpatient areas of care facilities such as parking garages and administrative offices;
(9) Bed changes that involve ten per cent or ten beds of existing licensed bed types, whichever is less, of a facility's total existing licensed beds within a two-year period;
[(10) Projects that are wholly dedicated to meeting the State's obligations under court orders, including consent decrees, that have already determined that need for the projects exists;
(11)] (10) Replacement of existing equipment with its modern-day equivalent;
[(12)] (11) Primary care clinics under the expenditure thresholds referenced in section 323D-2;
[(13)] (12) Equipment and services related to that equipment, that are primarily invented and used for research purposes as opposed to usual and customary diagnostic and therapeutic care;
[(14)] (13) Capital expenditures that are required:
(A) To eliminate or prevent imminent safety hazards as defined by federal, state, or county fire, building, or life safety codes or regulations;
(B) To comply with state licensure standards;
(C) To comply with accreditation standards, compliance with which is required to receive reimbursements under Title XVIII of the Social Security Act or payments under a state plan for medical assistance approved under Title XIX of such Act;
[(15)] (14) Extended care adult residential care homes and assisted living facilities; or
[(16)] (15) Other facilities or services that the agency through the statewide council chooses to exempt, by rules pursuant to section 323D-62."
SECTION 5. Section 333F-2, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:
"(a) The department shall develop, lead, administer, coordinate, [monitor,] evaluate, and set direction for a comprehensive system of supports and services for persons with developmental disabilities or mental retardation within the limits of state or federal resources allocated or available for the purposes of this chapter. The department shall administer or may provide available supports and services based on a client-centered plan, which resulted from client choices and decision-making that allowed and respected client self-determination.
The department's responsibility for persons with developmental disabilities or mental retardation shall be under one administrative unit for the purpose of coordination, [monitoring,] evaluation, and delivery of services. Not later than June 30, 1999, all programs and services falling under this chapter shall be provided in the community, including services presently provided at Waimano training school and hospital. When the private sector does not provide or is not able to provide the services, the department shall provide the services. Clients at Waimano training school and hospital shall be placed into community-based programs provided appropriate support services are available.
The department shall convene a panel not later than August 1, 1995, to create a plan to provide services in the community and to ensure that the transition of Waimano training school and hospital residents to the community will be client-centered, taking into consideration the health, safety, and happiness of the residents and the concerns of their families. The panel shall consist of but not be limited to consumers, families, representatives from the private sector, employees and employee representatives, professionals, representatives of the University of Hawaii affiliate program, and representatives of the state council on developmental disabilities."
SECTION 6. Section 333F-3, Hawaii Revised Statutes, is amended to read as follows:
"[[]§333F-3[]] Community services for the developmentally disabled. The department shall develop and administer a community service delivery system which may design, implement, administer, coordinate, [monitor,] and evaluate the programs and services of the department for persons with developmental disabilities or mental retardation other than the operations and management of Waimano training school and hospital."
SECTION 7. All rights, powers, functions, and duties of the office of health care assurance are transferred to the state health planning and development agency.
All officers and employees whose functions are transferred by this Act shall be transferred with their functions and shall maintain the same position status, whether civil service or exempt. All transferred officers and employees shall continue to perform their regular duties upon their transfer, subject to the state personnel laws and this Act without suffering any loss of salary, seniority, prior service credit, vacation, sick leave, or other employee benefit or privilege as a consequence of this Act.
SECTION 8. All appropriations, records, equipment, machines, files, supplies, contracts, books, papers, documents, maps, and other personal property heretofore made, used, acquired, or held by the department of health relating to the functions transferred to the state health planning and development agency shall be transferred with the functions to which they relate.
SECTION 9. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 10. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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