HOUSE OF REPRESENTATIVES

H.B. NO.

1483

TWENTY-SEVENTH LEGISLATURE, 2013

H.D. 2

STATE OF HAWAII

S.D. 2

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO THE HAWAII HEALTH SYSTEMS CORPORATION.

 

 

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

 


     SECTION 1.  The legislature finds that the Hawaii health systems corporation is the fourth largest public hospital system in the nation and operates public health care facilities that provide essential safety-net hospital and long-term care services throughout the State.  The legislature further finds that improving the efficiency and quality of health care services in all communities of the State has become increasingly important.  The continued financial challenges faced by the Hawaii health systems corporation and the State necessitate that state government consider and explore various options to improve the quality, efficiency, and availability of health care services in Hawaii.

     Prominent national studies have demonstrated that many public hospital systems have struggled financially for a variety of reasons, including providing a disproportionate level of uncompensated and under-compensated care compared to private hospital systems and the inherent constraints and inefficiencies that result from operating as a purely governmental agency.  As a result, an increasing number of states have looked to public-private partnerships status as a vehicle to address these issues.

     The legislature finds that allowing the operations of the regional systems of the Hawaii health systems corporation and their facilities to transition to public-private partnership status to address the health care needs of communities throughout the State is worthy of further consideration.

     The purpose of this Act is to establish the Hawaii health systems corporation transition task force to study the feasibility and merits of allowing the operations of one or more regional systems of the Hawaii health systems corporation, or one or more of its individual health facilities, to transition to public-private partnership status.

     SECTION 2(a)  There is established the Hawaii health systems corporation transition task force, within the department of health for administrative purposes, to conduct a study on the feasibility of allowing the operations of one or more regional systems of the Hawaii health systems corporation, or one or more of its individual health facilities, to transition to public-private partnership status.  The study shall examine the advantages and disadvantages of allowing the operations of one or more regional systems of the Hawaii health systems corporation, or one or more of its individual health facilities, to transition to public-private partnership status and shall include the effects of such a transition on:

     (1)  The quality of health care services available to communities and the State;

     (2)  The operational efficiencies of health facilities in communities and the State;

     (3)  The financial costs and benefits to the State; and

     (4)  Health care personnel and other employees of the Hawaii health systems corporation.

In its discussions, the task force shall engage the input of members of communities that would be affected by the Hawaii health systems corporation's transition to public-private partnership status, including holding public meetings with health care personnel and other employees of the Hawaii health systems corporation in accordance with chapter 92, Hawaii Revised Statutes, to gather input on and take recommendations regarding but not limited to electrical costs, water costs, costs of having highly-qualified personnel for staffing of positions like sitters, possible revenue generating proposals, and other cost saving measures.

     The task force shall also address a securitization mechanism, including that a new entity be required to post bonds equal to no less than fifty per cent of the entire capital project funded by the State.  The bonding would apply to any and all facilities, improvements, infrastructure, or anything purchased by or funded by the State of Hawaii to which the new entity would be gaining lease or ownership thereof.  The task force shall also study the impact of hiring solely out-of-state contract workers and the impact that would have on the community, particularly the strain on the short term rental housing market that hiring workers may have.

     (b)  The Hawaii health systems corporation transition task force shall consist of the following nine members:

     (1)  The director of health or a designee;

     (2)  The attorney general or a designee;

     (3)  The director of finance or a designee;

     (4)  The chief executive officer of the Hawaii health systems corporation or a designee;

     (5)  A member of the corporation board of the Hawaii health systems corporation;

     (6)  Two public sector representatives who shall be appointed by the governor;

     (7)  The administrator of the state health planning and development agency; and

     (8)  The dean of the John A. Burns school of medicine or a designee.

     (c)  The task force shall report:

     (1)  Its findings and recommendations, including proposed legislation, if any; and

     (2)  Any actions being taken to incorporate alternative cost reductions,

to the legislature no later than twenty days prior to the convening of the regular session of 2014.

     (d)  The governor shall select the chair of the Hawaii health systems corporation transition task force from among its members.

     (e)  The members of the task force shall not be considered employees for the purposes of chapter 84, Hawaii Revised Statutes, based solely upon their participation in the task force.

     (f)  The task force shall cease to exist on June 30, 2015.

     SECTION 3.  This Act shall take effect on July 1, 2050.



 

Report Title:

Task Force; HHSC Transition to Public-private Partnership Status

 

Description:

Establishes a task force to study, among other things, the feasibility of allowing the operations of the Hawaii Health Systems Corporation regional systems and their facilities to transition to public-private partnership status.  Requires report to the Legislature prior to the 2014 Regular Session.  Task force ceases to exist on June 30, 2015.  Effective 07/01/2050.  (SD2)

 

 

 

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