STAND.
COM. REP. NO. 1484
Honolulu, Hawaii
, 2023
RE: S.B. No. 404
S.D. 2
H.D. 1
Honorable Scott K. Saiki
Speaker, House of Representatives
Thirty-Second State Legislature
Regular Session of 2023
State of Hawaii
Sir:
Your Committees on Human Services and Health & Homelessness, to which was referred S.B. No. 404, S.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO THE HOSPITAL SUSTAINABILITY PROGRAM,"
beg leave to report as follows:
The
purpose of this measure is to preserve
access to health care for Medicaid recipients and strengthen the Hospital
Sustainability Program by:
(1) Amending the definition of "private hospital";
(2) Clarifying the uses of the Hospital Sustainability Program Special Fund;
(3) Increasing the Hospital Sustainability Fee cap for various facilities;
(4) Requiring the Department of Human Services to consult and negotiate with the hospital trade association in Hawaii regarding Hospital Sustainability Fee participation and rates;
(5) Clarifying the circumstances under which the Hospital Sustainability Fee shall be discontinued and the distribution of remaining funds;
(6) Repealing the sunset dates of Act 217, Session Laws of Hawaii 2012, and Act 123, Session Laws of Hawaii 2014, thereby making the Hospital Sustainability Program permanent and permanently exempting the Hospital Sustainability Program from the central service and administrative expenses assessments; and
(7) Appropriating funds out of the Hospital Sustainability Program Special Fund.
Your Committees received testimony in support of this measure from the Department of Human Services, Hawai‘i Primary Care Association, Hawai‘i Pacific Health, The Queen's Health System, Healthcare Association of Hawaii, Kaiser Permanente Hawai‘i, and two individuals.
Your Committees find that
the Hospital Sustainability Program (Program) began over ten years ago and has
been highly successful in helping support hospitals' ability to continue to
provide services to Medicaid recipients.
The Hospital Sustainability Program Special Fund receives money from the
Hospital Sustainability Fee, which is then used to match with federal Medicaid
matching funds. In turn, these monies
are used to increase reimbursements to hospitals and payments for performance
to the hospitals, which ensures that hospitals in Hawaii can continue to be a
critical part of the safety net. The
Program has proven successful for providers, beneficiaries, and the State,
given that it uses no state general funds.
Your Committees believe that the Program has contributed to the overall
sustainability of the health care system in Hawaii and should therefore be
continued permanently.
Accordingly, this
measure ensures the continued success of the Program by repealing the sunset dates
of Act 217, Session Laws of Hawaii 2012, and Act 123, Session Laws of Hawaii
2014, thereby making the Program permanent.
Repealing the sunset dates also permanently exempts the Program from the
central service and administrative expenses assessments, which are estimated to
save around $5,000,000 in central services expenses assessments and $1,000,000
in administrative expenses each year.
Your
Committees have amended this measure by:
(1) Reverting to existing statutory language that
requires no less than ninety percent of monies in the Hospital Sustainability
Program Special Fund to be used to match federal Medicaid funds; and
(2) Making technical, nonsubstantive amendments
for the purposes of clarity, consistency, and style.
As affirmed by the records of votes of the members of your Committees on Human Services and Health & Homelessness that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 404, S.D. 2, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 404, S.D. 2, H.D. 1, and be referred to your Committee on Finance.
Respectfully submitted on behalf of the members of the Committees on Human Services and Health & Homelessness,
____________________________ DELLA AU BELATTI, Chair |
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____________________________ JOHN M. MIZUNO, Chair |
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