STAND. COM. REP. NO.  475-26

 

Honolulu, Hawaii

                , 2026

 

RE:   H.B. No. 2501

      H.D. 1

 

 

 

 

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

 

Madame:

 

     Your Committees on Health and Consumer Protection & Commerce, to which was referred H.B. No. 2501 entitled:

 

"A BILL FOR AN ACT RELATING TO HEALTH CARE,"

 

beg leave to report as follows:

 

     The purpose of this measure is to balance the financial burden of high-cost Medicare and uninsured patients among health care institutions that receive state funds by:

 

     (1)  Requiring hospitals and hospital systems to submit annual certified reports detailing the costs of care for certain Medicare and uninsured patients;

 

     (2)  Requiring the Department of Health, Hawaii Health Systems Corporation, and State Health Planning and Development Agency to review the reports, establish standards and procedures, and adopt rules;

 

     (3)  Directing the Department of Health to consider the reports when determining the Department's budget request and to designate financial assistance requests in an equitable manner; and

 

     (4)  Requiring the Office of the Auditor to conduct periodic audits of the financial assistance distributed to hospitals and hospital systems.  

 

     Your Committees received comments on this measure from the Department of Health; Office of the Auditor; Hawaii Health Systems Corporation; Healthcare Association of Hawaii; and The Queen's Health Systems.

 

     Your Committees find that the State's hospitals and hospital systems bear significant and often uneven financial burdens when providing care to high-need Medicare beneficiaries and uninsured patients, with health care institutions serving rural or medically underserved areas bearing a disproportionately large share of the uncompensated costs.  Your Committees further find that a standardized, statewide system for quantifying and comparing these expenses will enable the State to better understand the budgetary needs and financial pressures faced by individual institutions.  This measure is intended to strengthen the financial stability of the State's health care infrastructure and improve the State's ability to ensure equitable care for all residents by requiring the Department of Health to collect certain financial data from State hospitals and hospital systems for use in its budget determinations.

 

     Your Committees have amended this measure by:

 

     (1)  Requiring hospital and hospital systems to report on their net loss from caring for high-need Medicare beneficiaries and uninsured patients, rather than the total amount expended;

 

     (2)  Changing the effective date to July 1, 3000, to encourage further discussion; and

 

     (3)  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 Health and Consumer Protection & Commerce that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2501, as amended herein, and recommend that it pass Second Reading in the form attached hereto as H.B. No. 2501, H.D. 1, and be referred to your Committee on Finance.

 

 

Respectfully submitted on behalf of the members of the Committees on Health and Consumer Protection & Commerce,

 

 

____________________________

SCOT Z. MATAYOSHI, Chair

 

____________________________

GREGG TAKAYAMA, Chair