CONFERENCE COMMITTEE REP. NO. 20

Honolulu, Hawaii

                 , 2017

RE:    H.B. No. 89

       H.D. 1

       S.D. 1

       C.D. 1

Honorable Joseph M. Souki

Speaker, House of Representatives

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Honorable Ronald D. Kouchi

President of the Senate

Twenty-Ninth State Legislature

Regular Session of 2017

State of Hawaii

Sirs:

     Your Committee on Conference on the disagreeing vote of the House of Representatives to the amendments proposed by the Senate in H.B. No. 89, H.D. 1, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE HOSPITAL SUSTAINABILITY PROGRAM,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to preserve access to health care for Medicaid recipients by:

     (1)  Extending the Hospital Sustainability Program for two years and updating statutory references accordingly;

     (2)  Clarifying that the rate of the outpatient hospital sustainability fee shall not exceed three percent of net outpatient hospital service revenue;

     (3)  Allowing the Department of Human Services (DHS) to exclude any facility from the hospital sustainability fee on outpatient care services if its exclusion is required to meet federal standards of approval; and

     (4)  Appropriating funds out of the Hospital Sustainability Program Special Fund for Fiscal Year 2017-2018 and Fiscal Year 2018-2019.

     Your Committee on Conference has amended this measure by:

     (1)  Increasing the maximum rate of inpatient and outpatient hospital sustainability fees to three and one-half percent; and

     (2)  Changing the appropriation amount from $65,000,000 to $70,000,000.

     As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of H.B. No. 89, H.D. 1, S.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as H.B. No. 89, H.D. 1, S.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE SENATE

ON THE PART OF THE HOUSE

____________________________ JOSH GREEN Chair	____________________________ DEE MORIKAWA Co-Chair
____________________________ ROSALYN H. BAKER Co-Chair	____________________________ DELLA AU BELATTI Co-Chair
____________________________ BRIAN T. TANIGUCHI Co-Chair	____________________________ CEDRIC ASUEGA GATES Co-Chair