STAND. COM. REP. NO.1055

Honolulu, Hawaii

, 2001

RE: S.B. No. 1133

S.D. 1

H.D. 1

 

 

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 1133, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO HAWAII HEALTH SYSTEMS CORPORATION,"

begs leave to report as follows:

The purpose of this bill is to allow the Hawaii Healthcare Systems Corporation (HHSC) to enhance the community network of healthcare facilities throughout the State by:

(1) Allowing more flexibility in decision-making;

(2) Requiring a more thorough annual report and audit;

(3) Placing accountability with regional advisory committees; and

(4) Developing community involvement.

The Department of Health and HHSC testified in support of this measure. The State Health Planning and Development Agency (SHPDA) supported the intent of this measure.

The Hawaii Government Employees Association (HGEA) opposed this measure.

SHPDA and HGEA expressed concerns that the Director of Health (Director) would cause a conflict of interest if the Director is also a board member of HHSC. HGEA further expressed that HHSC should be held accountable to the Legislature, rather than the Director.

Your Committee understands that HHSC was established to operate and administer the public hospital system in Hawaii. Since its establishment, HHSC has achieved major improvements in its financial performance and continues to increase its revenues and decrease its costs.

Furthermore, your Committee realizes that HHSC requires more flexibility in management to increase the quality of service and care and remain financially sound. However, HHSC also serves as an in-patient safety net for many people and that closure of some of the facilities under HHSC's jurisdiction would be disastrous for community health.

Your Committee also had concerns regarding the omission of the regional public health facility management advisory committees from the decision making process with regards to the increase, decrease, or modification of the scope or type of health care services rendered by the public health facility within its respective jurisdiction.

Accordingly, your Committee has amended this bill by:

(1) Requiring the public health facility management advisory committees for each region to submit a report which would include its recommendations for modifying, decreasing, or increasing the scope or type of health care services to be rendered by the public health facilities within its respective jurisdiction and the costs or savings associated with the modifying, decreasing, or increasing the scope or type of health care services rendered;

(2) Requiring these reports to be submitted to the Legislature at least twenty days prior to the convening of each regular session;

 

(3) Requiring recommendation of the regional public health facility management advisory committee, and approval of the Director and the Legislature before there is a substantial reduction or elimination of direct patient care services at any facility;

(4) Amending the effective date of the measure; and

(5) Making technical, nonsubstantive amendments for purposes of clarity and style.

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 S.B. No. 1133, S.D. 1, as amended herein, and recommends that it pass Second Reading in the form attached hereto as S.B. No. 1133, S.D. 1, H.D. 1, and be referred to the Committee on Finance.

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

____________________________

DENNIS A. ARAKAKI, Chair