STAND. COM. REP. NO. 774

Honolulu, Hawaii

RE: S.B. No. 314

S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Second State Legislature

Regular Session of 2023

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred S.B. No. 314, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO NURSING FACILITIES,"

begs leave to report as follows:

The purpose and intent of this measure is to make the nursing facility sustainability program permanent and appropriate moneys from the nursing facility sustainability program special fund for the program.

Your Committee received written comments in support of this measure from the Department of Human Services, Hilo Medical Center, Hawaii Primary Care Association, Healthcare Association of Hawaii, Kaiser Permanente, Hawaii Pacific Health, Ohana Pacific Management Company/Hale Makua Services, Queen's Health System, Palolo Chinese Home, and one individual.

Your Committee received written comments on this measure from the Department of Taxation and Aloha Nursing Rehab Centre.

Your Committee finds that the nursing facility sustainability program, which imposes provider fees on nursing facilities in the State has resulted in a substantial increase in Medicaid payments without placing more constraints on the State's budget. Your Committee also finds that the program has enabled nursing facilities to serve uninsured and underinsured patients and protected the sustainability of the State's health care system.

Your Committee has amended this measure by:

(1) Amending other provisions within the Hawaii Revised Statutes to conform to the statutory amendments made by this measure;

(2) Clarifying the process by which facilities may be excluded from assessments;

(3) Changing the appropriation from $24,000,000 to an unspecified amount to facilitate further discussion on the measure; and

(4) Making technical nonsubstantive amendments for purposes of clarity, consistency, and style.

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. 314, S.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 314, S.D. 2.

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

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DONOVAN M. DELA CRUZ, Chair