STAND. COM. REP. NO. 2686

 

Honolulu, Hawaii

                  

 

RE:    S.B. No. 3105

       S.D. 1

 

 

 

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Eighth State Legislature

Regular Session of 2016

State of Hawaii

 

Sir:

 

     Your Committee on Judiciary and Labor, to which was referred S.B. No. 3105, S.D. 1, entitled:

 

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

 

begs leave to report as follows:

 

     The purpose and intent of this measure is to:

 

     (1)  Require a health care provider who refers patients to facilities in which the health care provider has a financial interest to disclose the financial interest to the patient; and

 

     (2)  Specify that failure to disclose a financial interest to a patient is an unfair or deceptive trade act or practice.

 

     Your Committee received testimony in support of this measure from the Hawaii Medical Board.  Your Committee received testimony in opposition to this measure from the Hawaii Medical Association and two individuals.

 

     Your Committee finds that self-referrals, which occur when a health care provider refers a patient for services or treatments at facilities in which the health care provider has a financial interest, raise questions about financial and medical conflicts of interest.  Self-referrals may lead to overutilization of expensive treatments and services, which may therefore increase the cost of insurance.  Your Committee further finds that this measure provides important safeguards for Hawaii patients when they are referred for services or treatments at facilities in which a health care provider has a financial interest and will enable patients to make better informed choices about their health care.

 

     As affirmed by the record of votes of the members of your Committee on Judiciary and Labor that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3105, S.D. 1, and recommends that it pass Third Reading.

 

Respectfully submitted on behalf of the members of the Committee on Judiciary and Labor,

 

 

 

________________________________

GILBERT S.C. KEITH-AGARAN, Chair