Honolulu, Hawaii

                , 2015


RE:   H.B. No. 1075

      H.D. 1





Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Eighth State Legislature

Regular Session of 2015

State of Hawaii




     Your Committee on Health, to which was referred H.B. No. 1075 entitled:




begs leave to report as follows:


     The purpose of this measure is to ensure continued access to health care services in the County of Maui by authorizing the Hawaii Health Systems Corporation (HHSC) Maui Regional System, in collaboration with a private entity, to transition one or more of its facilities, which include Maui Memorial Medical Center, Kula Hospital and Clinic, and Lanai Community Hospital, into a new private nonprofit corporation operated by the private entity and subject to HHSC oversight.


     The Mayor of the County of Maui; County of Maui; HHSC; HHSC Maui Region; Hawaii Pacific Health; The Chamber of Commerce of Hawaii; Hawaii Lodging & Tourism Association; Maui Hotel & Lodging Association; The Westin Maui Resort & Spa; Napili Kai Beach Resort; Hale Makua Health Services; Hawaii Government Employees Association, AFSCME Local 152, AFL-CIO; and numerous individuals supported this measure.  Lanai Community Health Center; Hawaii Primary Care Association; United Public Workers, AFSCME, Local 646, AFL-CIO; and an individual opposed this measure.  The Department of Budget and Finance, Department of the Attorney General, Office of Hawaiian Affairs Committee on Beneficiary Advocacy and Empowerment, Maui Memorial Medical Center, and ILWU Local 142 commented on this measure.


     To facilitate continued deliberation on this measure, your Committee requests that HHSC or the Maui Regional System Board provide the Committee on Labor and Public Employment with the following information:


(1)  The amounts of operating subsidies that HHSC and the Maui Regional System have received from the State since 2007; and


(2)  The amounts of previously-approved Capital Improvement Project (CIP) requests for Maui Memorial Medical Center, Kula Hospital and Clinic, and Lanai Community Hospital, as well as any pending CIP requests that are being considered for the transition to a public-private partnership.


     Your Committee has amended this measure by:


     (1)  Changing its effective date to July 1, 2050, to encourage further discussion; and


     (2)  Making a technical, nonsubstantive amendment for clarity.


     As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1075, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1075, H.D. 1, and be referred to the Committee on Labor & Public Employment.


Respectfully submitted on behalf of the members of the Committee on Health,