HOUSE OF REPRESENTATIVES
TWENTY-SEVENTH LEGISLATURE, 2014
STATE OF HAWAII
A BILL FOR AN ACT
RELATING TO THE HOSPITAL SUSTAINABILITY PROGRAM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Act 217, Session Laws of Hawaii 2012, as amended by section 1 of Act 141, Session Laws of Hawaii 2013, is amended by amending section 2 as follows:
1. By amending the definitions of "net patient service revenue" and "private hospital" in section -3, Hawaii Revised Statutes, to read:
""Net patient service revenue"
means gross revenue from inpatient and outpatient care provided to hospital
patients converted to net patient revenue utilizing data from Worksheets G-2
and G-3 of each hospital's medicare cost report for fiscal year [
2010-2011.] 2011-2012. If the
hospital is new or did not file a fiscal year medicare cost report, the
department shall obtain the hospital's net patient service revenue from the
most recent period available.
"Private hospital" means those
non-public hospitals named in attachment A of the medicaid section 1115
demonstration waiver that were in operation in calendar year [
2012] 2013 and are currently
2. By amending subsections (c) and (d) of section -5, Hawaii Revised Statutes, to read:
"(c) The hospital sustainability fee for
inpatient care services may differ from the fee for outpatient care services
but the fees shall not in the aggregate exceed three per cent of net patient
service revenue as derived from the hospital's medicare cost report ending
during state fiscal year [
2011-2012. The inpatient hospital sustainability fee shall be [ 2.365] 2.175 per cent of net
inpatient hospital service revenue. The outpatient hospital sustainability fee
shall be three per cent of net outpatient hospital service revenue. Each fee
shall be the same percentage for all affected hospitals, subject to subsection
(d) The department shall exempt children's
hospitals, federal hospitals, public hospitals, rehabilitation hospitals,
psychiatric hospitals, and any hospital that was not in operation during any
part of calendar year [
from the hospital sustainability fees on inpatient services. In addition, the
department shall exempt hospitals with net outpatient revenue of less than [ $42,500,000]
$45,000,000 per year (based on fiscal year [ 2010-2011] 2011-2012 reports),
public hospitals, and any hospital that was not in operation during any part of
calendar year [ 2012] 2013
from the hospital sustainability fee on outpatient care services."
3. By amending subsection (a) of section -10, Hawaii Revised Statutes, to read:
"(a) The department shall use moneys from
the hospital sustainability program special fund to make direct payments to
private hospitals in an amount equal to [
$85,000,000 to cover the uncompensated care costs incurred by private
hospitals for serving medicaid and uninsured individuals during state fiscal
year [ 2013-2014.] 2014-2015."
4. By amending subsection (c) of section -10, Hawaii Revised Statutes, to read:
"(c) Each eligible hospital's quarterly
payment shall be equal to one-quarter of its uncompensated care costs for the
fiscal year in which payment is made, as derived from the uncompensated care
costs reported by all private hospitals for fiscal year [
SECTION 2. Act 217, Session Laws of Hawaii 2012, as amended by section 2 of Act 141, Session Laws of Hawaii 2013, is amended by amending section 5 to read as follows:
"SECTION 5. This Act shall take effect on
July 1, 2012, and shall be repealed on June 30,
2014;] 2015; provided that section [ -4 (c),] -4,
Hawaii Revised Statutes, in section 2 of this Act shall be repealed on December 31, [ 2014.] 2015."
SECTION 3. There is appropriated out of the hospital sustainability program special fund the sum of $ or so much thereof as may be necessary for fiscal year 2014-2015 to be used for the purposes of the hospital sustainability program special fund.
The sum appropriated shall be expended by the department of human services for the purposes of this Act.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect on June 29, 2030; provided that section 3 shall take effect on July 1, 2014.
Hospital Sustainability Program; Special Fund; Appropriation
Continues the Hospital Sustainability Program by extending its sunset date to June 30, 2015, updating the referral dates in the statute, and revising the funding amount for the Hospital Sustainability Program for fiscal year 2014-2015. Effective June 29, 2030. (HB2293 HD2)
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.