STAND. COM. REP. NO.3064
RE: H.B. No. 2709
Honorable Robert Bunda
President of the Senate
Twenty-First State Legislature
Regular Session of 2002
State of Hawaii
Your Committee on Health and Human Services, to which was referred H.B. No. 2709 entitled:
"A BILL FOR AN ACT RELATING TO HEALTH,"
begs leave to report as follows:
The purpose of this measure is to establish accountability for funds received and expended by the hospital and medical facilities special fund.
Testimony in support of the intent of this measure was submitted by the Department of Health.
Your Committee finds that the hospital and medical facilities special fund was originally established to offset expenses of Department of Health (DOH) programs involving hospital and medical facility inspections and educational training programs for staff. Your Committee further finds that this DOH program has evolved into the Office of Health Care Assurance, and thus funds are needed to support activities more focused on educational rather than regulatory activities.
Your Committee also heard H.B. 1072, related to establishing a separate Maui Regional Health Systems corporation. Testimony in support of this measure was submitted by the Office of the Mayor for Maui County, the Maui County Medical Society, Hawaii Medical Association, Maui Economic Opportunity, Lahaina-Honolua Senior Citizens Club, West Maui Taxpayers Association, two Maui physicians, and a Maui county resident. Testimony in opposition to this measure was submitted by the Department of Health, the Hawaii Health Systems Corporation (HHSC), the HHSC Board chair and officers, Maui County Hospital Region, members of the Maui, Kauai, West Hawaii, East Hawaii, and Oahu regional management advisory committees, Kona Community Hospital, Hilo Medical Center, Mahelona Memorial Hospital, West Kauai Medical Center, Maluhia Long-Term Care Health Center, Kohala Hospital, Hawaii Island Radiation Oncology, Inc., Clinical Laboratories of Hawaii, United Public Workers, and Hawaii Government Employees Association.
Your Committee finds that the Maui Memorial Medical Center (MMMC) is the profit-center for the Hawaii Health Systems Corporation, but the MMMC does not reap the benefits of these profits through direct reinvestment back into their facilities and personnel. Your Committee further finds that a pilot project to allow a Maui Regional Health Systems Corporation would test the viability of regional or county health care systems, while still allowing the Hawaii Health Systems Corporation to maintain authority for the management and operations of the remaining health-care facilities.
Upon further consideration, your Committee has amended this measure by:
(1) Inserting the contents of H.B. 1072, with modifications to allow the establishment of county or regional health systems corporations comprising any of the current HHSC facilities, and requesting HHSC to report to the 2003 legislature on the establishment of any county or regional health systems corporations;
(2) Inserting an appropriation of $49,000,000 to assist in the spin-off and start-up costs of these county or regional health systems corporations;
(3) Requiring deposit into the general fund of fines collected for violations of the adult residential care home licensing law (section 321-15.6, Hawaii Revised Statutes), rather than all administrative penalties collected under section 321-20, Hawaii Revised Statutes;
(4) Inserting authorizations for general obligation bonds in the amount of $38,000,000 for Maui Memorial Medical Center, and $20,000,000 for Hilo Medical Center; and
(5) Making technical nonsubstantive changes for the purposes of clarity and style.
As affirmed by the record of votes of the members of your Committee on Health and Human Services that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2709, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2709, S.D. 1, and be referred to the Committee on Ways and Means.
Respectfully submitted on behalf of the members of the Committee on Health and Human Services,
DAVID MATSUURA, Chair