Report Title:

State Health Planning and Development Agency; Audit

 

Description:

Directs the Auditor to do a management audit of the State Health Planning and Development Agency certificate of need program; makes an appropriation.

 


HOUSE OF REPRESENTATIVES

H.B. NO.

492

TWENTY-FOURTH LEGISLATURE, 2007

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT


 

 

relating to health.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


     SECTION 1.  The legislature finds that, pursuant to chapter 323D, Hawaii Revised Statutes, the development, modification, or alteration of any new major health care facility or health care service first requires a certificate of need to be issued by the state health planning and development agency, referred to in chapter 323D, Hawaii Revised Statutes, as the "state agency".  Upon the filing of an application for a certificate of need, the state agency forwards the application to a subarea health planning council, of which at least one shall be established for each county, for review, to take public input, and make a recommendation on the application to the state agency.  The application is then forwarded to the statewide review panel, comprised of members from each county and the majority of who shall be health care consumers, for its review and recommendation.  Following the review by the statewide review panel, the application of the certificate of need is then forwarded to the statewide health coordinating council, a body appointed by the governor and that includes both health care providers and health care consumers, for its review and recommendation.

     Following this review process, the administrator of the state agency, a sole individual, makes a decision whether to approve or deny the application for the certificate of need.

     The legislature further finds that this process was undertaken in the application for the proposed Malulani hospital on the island of Maui.  That application proposed the development of a $212,000,000, one hundred bed acute care full service hospital, including a state-of-the-art cardiac care facility that is presently lacking on Maui.  The application was recommended for approval by the Maui subarea health planning council; however, the application received recommendations for denial by the statewide review panel and the statewide health coordinating council.  The administrator of the state agency subsequently denied the application of the certificate of need.

     The legislature finds that this process for a review of any  major new health care facility or health care service is cumbersome, repetitive, time-consuming, and expensive.  The legislature further finds that it is illogical to permit one individual to make a decision that may have major implications for the residents of the area where the proposed health care facility or health care service is to be provided.  Further, the financial impacts that such a proposed health care facility or health care service may have on the entire State warrants a procedure that is not dependent on the judgment of a single individual.

     The purpose of this Act is to direct the auditor to conduct a management audit of the certificate of need program being administered by the state agency and to make appropriate recommendations to eliminate, modify, or amend the certificate of need program.

     SECTION 2.  The auditor shall conduct a management audit of the certificate of need program, presently being administered by the state health planning and development agency, for the proposal of any new major health care facilities or health care services.

     The auditor shall submit a report to the legislature no later than twenty days prior to convening of the Regular Session 2008, containing its findings and recommendations, including any necessary proposed legislation, concerning the elimination, modification, or amendment of the certificate of need program.

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $          , or so much thereof as may be necessary for fiscal year 2007-2008, for a management audit of the certificate of need program now being administered by the state health planning and development agency.

     The sum appropriated shall be expended by the auditor for the purposes of this Act.

     SECTION 4.  This Act shall take effect on July 1, 2007.

 

INTRODUCED BY:

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