H.B. NO.



H.D. 2


S.D. 1














     SECTION 1.  The legislature finds that there is a shortage of long-term care beds in many areas of the State, including Oahu.  This shortage has placed an undue burden on acute care hospitals that are experiencing a long list of patients who are awaiting placement in a long-term care bed.  The waitlist problem presents quality of care issues for both patients who are awaiting long-term care beds and patients who need acute care beds.

     The closing of Hawaii Medical Center further exacerbated the shortage problem by eliminating a large number of long-term care beds that had been available, along with the elimination of other needed services.  Furthermore, the number and types of beds eliminated by the closing of Hawaii Medical Center cannot be fully absorbed by existing facilities.

     Hawaii health systems corporation, the fourth largest public hospital system in the nation, operates public health care facilities that provide essential safety-net hospital and long-term care services throughout the State.  The legislature further finds that Leahi hospital, a facility of the Hawaii health systems corporation, can help alleviate the shortage of long-term care beds, but needs major renovation.

     Accordingly, the legislature finds that it is in the public interest to establish a public-private partnership between the owners of the facility previously known as Hawaii Medical Center-East, located on Liliha Street in Honolulu, and the Hawaii health systems corporation, to provide long-term care and other health care services in the State.

     The purpose of this Act is to provide for the health care needs of the community by authorizing the Hawaii health systems corporation to bring the Hawaii Medical Center–East facility under its governance through formal affiliation or acquisition.

     SECTION 2.  Chapter 323F, Hawaii Revised Statutes, is amended by adding a new section to part III to be appropriately designated and to read as follows:

     "§323F-    Hawaii Medical Center–East; affiliation; acquisition.  (a)  The Hawaii Medical Center–East on Oahu may be assimilated into the Hawaii health systems corporation by negotiation between the corporation and the owners of the Hawaii Medical Center–East.  Assimilation may be accomplished with the creation of a new entity, a partnership, a long-term lease, or any other vehicle determined to be in the best interests of the public by the corporation board and as negotiated with the owners of the Hawaii Medical Center–East.  After assimilation, Hawaii Medical Center–East shall be operated by the corporation, either directly, through contractors, or through a subsidiary.

     (b)  None of the liabilities of Hawaii Medical Center–East shall become liabilities of the corporation.

     (c)  The Hawaii Medical Center–East, once assimilated, shall be exempt from chapter 102 and section 103-53, and its board of directors, if any, shall be exempt from part I of chapter 92.

     (d)  The purchase of goods and services by or on behalf of Hawaii Medical Center–East, after assimilation, shall be exempt from chapters 103D and 103F.

     (e)  Assimilation of Hawaii Medical Center-East into the Hawaii health systems corporation shall be exempt from part VII of chapter 323D."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $            or so much thereof as may be necessary for fiscal year 2012-2013 to carry out the purposes of this Act, including the hiring or contracting of staff.

     The sum appropriated shall be expended by the Hawaii health systems corporation for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.



Report Title:

HHSC; Hawaii Medical Center-East; Appropriation



Authorizes the assimilation of Hawaii Medical Center-East into the Hawaii Health Systems Corporation.  Appropriates funds for the hiring or contracting of staff.  Effective July 1, 2050.  (SD1)




The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.