STAND. COM. REP. NO. 1380-22

Honolulu, Hawaii

, 2022

RE: S.B. No. 3236

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2022

State of Hawaii

Sir:

Your Committee on Health, Human Services, & Homelessness, to which was referred S.B. No. 3236, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO MEDICAID PATIENT CARE,"

begs leave to report as follows:

The purpose of this measure is to appropriate funds to provide a one-time enhanced payment equal to fifteen percent of the Medicaid patient payments of fiscal year 2022-2023 made to any eligible facility in the State that provides care to Medicaid patients in a Medicare-certified nursing facility, community care foster family home, and expanded adult residential care home.

Your Committee received testimony in support of this measure from the Hawaii Health Systems Corporation Board of Directors, Healthcare Association of Hawaii, Hawai‘i Pacific Health, Palolo Chinese Home, Ohana Pacific Health, Aloha Nursing Rehab Centre, Ann Pearl Rehab & Nursing, Garden Isle Rehab & Nursing, Legacy Hilo Rehab & Nursing, Hale Mauka Health Services, The Villas, Hawai‘i Family Caregiver Coalition, Kaiser Permanente Hawai‘i, Islands Skilled Nursing and Rehabilitation, Pu‘uwai ‘O Makaha, The Queen's Health Systems, AARP Hawai‘i, Hale Kūpuna Heritage Home, and four individuals. Your Committee received comments on this measure from the Department of Human Services and Department of Budget and Finance.

Your Committee finds that the coronavirus disease 2019 (COVID-19) pandemic created significant staffing and financial strains for Hawaii's long-term care facilities. Nursing facilities, community care foster family homes, and expanded residential care homes in the State have experienced significant hardships, such as increased costs of labor, and having to pay for personal protective equipment, supplies, testing, and other pandemic-related expenses. Your Committee further finds that many nursing facilities have been forced to rely on temporary staffing agencies to compensate for staff absences due to COVID-19 exposures or infection, employee burnout, or employee attrition.

Your Committee also finds that although these facilities received some federal assistances, these funds only cover approximately thirty percent of the facilities' total pandemic-related losses. This measure is intended to assist licensed facilities that provide skilled nursing or intermediate care to Medicaid patients by providing a one-time enhanced payment to each facility, which will help these facilities stabilize and attract qualified workers and improve health outcomes for vulnerable facility residents.

As affirmed by the record of votes of the members of your Committee on Health, Human Services, & Homelessness that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3236, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

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

____________________________

RYAN I. YAMANE, Chair