STAND. COM. REP. NO. 1592

Honolulu, Hawaii

RE: H.B. No. 224

H.D. 1

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 224, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE STATE HEALTH PLANNING AND DEVELOPMENT AGENCY,"

begs leave to report as follows:

The purpose and intent of this measure is to amend certain statutory provisions relating to the State Health Planning and Development Agency.

More specifically, the measure:

(1) Makes the Department of Health alternatively responsible for the Agency's duties;

(2) Requires the Agency or Department of Health to update the state health services and facilities plan every five years;

(3) Transfers moneys in excess of $2,000,000 in the state health planning and development special fund to the general fund at the end of each fiscal year;

(4) Imposes an administrative penalty of an unspecified sum for each seven-day period during which a person violates or fails to act in compliance with an approved certificate of need granted by the Agency;

(5) Exempts psychiatric services, special treatment facilities, and chronic renal dialysis services from the certificate of need requirements; and

(6) Appropriates unspecified sums of moneys from the state health planning and development special fund to fund positions within the Agency.

Your Committee received written comments in support of this measure from the Department of Health, Institute for Justice, The Queen's Health Systems, Ohana Pacific Management Company, Hawaii Pacific Health, Satellite Healthcare, and U.S. Renal Care.

Your Committee received written comments in opposition to this measure from Liberty Dialysis Hawaii and eight individuals.

Your Committee received comments on this measure from the State Health Planning and Development Agency, Hawaii Substance Abuse Coalition, Hawaii Medical Service Association, Healthcare Association of Hawaii, and Hawaii Government Employees Association.

Your Committee recognizes that the Governor has proposed to minimize costs by transferring the State Health Planning and Development Agency's role of administering the Certificate of Need program to the Department of Health. However, your Committee believes that alternative means should be implemented to meet the Governor's cost-saving goals because the Certificate of Need program, as administered by the Agency, is essential to ensure access to health care and the continued viability of the health care system.

Your Committee has amended this measure by:

(1) Setting out specific definitions of the terms "psychiatric services", "special treatment facility", and "chronic renal dialysis services" for the purposes of exemptions from the certificate of need process; and

(2) Specifying that the exemption from the certificate of need process for chronic renal dialysis services applies to those services provided in Oahu regional government hospitals.

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 H.B. No. 224, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as H.B. No. 224, H.D. 1, S.D. 2.

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

________________________________

DONOVAN M. DELA CRUZ, Chair