Honolulu, Hawaii
                                                   , 1999

                                 RE: S.B. No. 851
                                     S.D. 2
                                     H.D. 1

Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 1999
State of Hawaii


     Your Committee on Consumer Protection and Commerce, to which
was referred S.B. No. 851, S.D. 2, H.D. 1, entitled: 


begs leave to report as follows:

     The purpose of this bill is to encourage the use of hospice
care and to ensure consistent, high-quality hospice care.

     Specifically, this bill achieves this purpose by:

     (1)  Authorizing the Department of Health to license hospice
          service agencies, including hospice homes that provide
          twenty-four-hour living accommodations to no more than
          five unrelated persons admitted to a hospice program of
          care, which provides palliative and supportive care for
          terminally ill persons and their families or

     (2)  Defining "hospice", "hospice home", "hospice services",
          and "hospice service agency"; and

     (3)  Permitting hospice homes in residential areas for
          purposes of zoning.

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                                 STAND. COM. REP. NO. 1368
                                 Page 2

     Your Committee received testimony supporting this bill from
the Department of Health and two concerned individuals.  The
Executive Office on Aging, the Hawaii Nurses' Association,
Hospice Hawaii, and the Policy Advisory Board for Elder Affairs
testified in support of this bill but recommended reinserting the
reimbursement provisions contained in sections 3 and 4 of the
S.D. 2 version of this bill.

     Your Committee wishes to note the need for further
consideration by the Committee on Finance of the recommendations
made by certain testifiers.  Specifically, section 3 of the
S.D. 2 version of this bill required insurers to reimburse
hospice care providers:

     (1)  A minimum daily rate as set by the Health Care
          Financing Administration for hospice care; and

     (2)  An unspecified daily amount for room and board expenses
          for hospice care in excess of the minimum daily rate.

Section 4 of the S.D. 2 version required hospice referral visits
during which patients are advised of hospice care options to be
considered reimbursable benefits regardless of whether the
referred patients are eventually admitted to hospice care.

     Your Committee believes that this bill will encourage wider
use of hospice care, which will increase patient satisfaction as
well as save money over hospital or other forms of acute care at
the end of life.

     As affirmed by the record of votes of the members of your
Committee on Consumer Protection and Commerce that is attached to
this report, your Committee is in accord with the intent and
purpose of S.B. No. 851, S.D. 2, H.D. 1, and recommends that it
be referred to the Committee on Finance.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Consumer
                                   Protection and Commerce,

                                   RON MENOR, Chair

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