Hawaii 2024 Regular Session

Hawaii House Bill HB1460 Compare Versions

Only one version of the bill is available at this time.

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1	1	HOUSE OF REPRESENTATIVES H.B. NO. 1460 THIRTY-SECOND LEGISLATURE, 2023 STATE OF HAWAII A BILL FOR AN ACT Relating to Public-Private Partnerships for the Delivery of Health Care Services. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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3	3	HOUSE OF REPRESENTATIVES H.B. NO. 1460
4	4	THIRTY-SECOND LEGISLATURE, 2023
5	5	STATE OF HAWAII
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9	9	H.B. NO.
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11	11	1460
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13	13	THIRTY-SECOND LEGISLATURE, 2023
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17	17	STATE OF HAWAII
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31	31	A BILL FOR AN ACT
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37	37	Relating to Public-Private Partnerships for the Delivery of Health Care Services.
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43	43	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
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47	47	SECTION 1. Section 323F-51, Hawaii Revised Statutes, is amended by amending the definition of "private" to read as follows: ""Private entity" means a business organization duly authorized to transact business in the State that: (1) Has a certificate of need or license to operate one or more [licensed hospitals in the State obtained from the state health planning and development agency pursuant to part V of chapter 323D;] community hospitals or hospitals serving a rural population licensed under the laws of any state; or (2) Is the sole member of a nonprofit management entity or hospital that has a certificate of need or license to operate one or more [licensed hospitals in the State obtained from the state health planning and development agency pursuant to part V of chapter 323D.] community hospitals or hospitals serving a rural population licensed under the laws of any state." SECTION 2. Section 323F-52, Hawaii Revised Statutes, is amended to read as follows: "[[]§323F-52[]] Transfer of right and responsibility to manage, operate, and provide health care services in a facility of the Maui regional system to a nonprofit management entity. (a) Notwithstanding any other law to the contrary, including but not limited to section 27-1[,]; section 76-16(b) and other sections of chapter 76[,]; chapters 78, 89, 89A, 89C, and 171[,]; part V of chapter 323D[,]; and sections 323F-11 and 323F-31, the governor, with the assistance of the chief executive officer of the corporation, and the regional chief executive officer of the Maui regional system, or their designees, shall negotiate with a private entity to transfer the right and responsibility to manage, operate and otherwise provide health care services at one or more facilities of the Maui regional system, including Maui memorial medical center, Kula hospital and clinic, and Lanai community hospital, to a nonprofit management entity wholly-owned by the private entity; provided that the private entity submitted a statement of interest in response to a notice published in accordance with section 1-28.5 by the Maui regional system board, inviting private entities to submit statements of interest in acquiring the right and responsibility to manage, operate, and otherwise provide health care services in one or more of the Maui regional system's facilities. (b) Any agreement negotiated by the governor and entered into by the private entity and the governor, the corporation board, and the Maui regional system board, shall, at minimum, include a transfer completion date and a plan and schedule for completing the transfer that includes: (1) Provisions and deadlines for conducting and completing due diligence; (2) Provisions and a deadline to terminate the agreement before a transfer is completed, at the parties' respective option; (3) Provisions for winding-down operations at the transferred facility or facilities and for terminating the agreement in the event that the lease entered into pursuant to section 323F-54 is terminated before the lease expires or the private entity or its nonprofit management entity abandons or otherwise discontinues its provision of health care services in a transferred facility; and (4) Provisions to transfer or assign interests in equipment and furnishings, including any leases for the same; accounts receivable; medicare and other provider agreements; business and commercial licenses and registrations; intellectual property and goodwill; administrative, financial, and medical records and information; or any other interests or property of the Maui regional system facility or facilities to be transferred under this part, that the parties agree to transfer or assign. (c) On and after the transfer completion date for the transfer of one or more facilities of the Maui regional system to a private entity or its nonprofit management entity pursuant to this part, the State, the corporation, and the Maui regional system and its board shall cease to have any responsibility for or control over the management and operation of the facility or facilities transferred by the agreement pursuant to this part. (d) Beginning January 1, 2024, before entering into any new agreement or modifying or terminating any existing agreement entered into pursuant to this part, the chief executive officer of the corporation or the chief executive officers designee shall provide the governor with written comments, including any representations made by the private entity to the corporation or Maui regional system related to the management and operation of and provision of health care services at the facility or facilities transferred or being transferred by the agreement pursuant to this part." SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date. SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored. SECTION 5. This Act shall take effect upon its approval. INTRODUCED BY: _____________________________
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49	49	SECTION 1. Section 323F-51, Hawaii Revised Statutes, is amended by amending the definition of "private" to read as follows:
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51	51	""Private entity" means a business organization duly authorized to transact business in the State that:
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53	53	(1) Has a certificate of need or license to operate one or more [licensed hospitals in the State obtained from the state health planning and development agency pursuant to part V of chapter 323D;] community hospitals or hospitals serving a rural population licensed under the laws of any state; or
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55	55	(2) Is the sole member of a nonprofit management entity or hospital that has a certificate of need or license to operate one or more [licensed hospitals in the State obtained from the state health planning and development agency pursuant to part V of chapter 323D.] community hospitals or hospitals serving a rural population licensed under the laws of any state."
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57	57	SECTION 2. Section 323F-52, Hawaii Revised Statutes, is amended to read as follows:
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59	59	"[[]§323F-52[]] Transfer of right and responsibility to manage, operate, and provide health care services in a facility of the Maui regional system to a nonprofit management entity. (a) Notwithstanding any other law to the contrary, including but not limited to section 27-1[,]; section 76-16(b) and other sections of chapter 76[,]; chapters 78, 89, 89A, 89C, and 171[,]; part V of chapter 323D[,]; and sections 323F-11 and 323F-31, the governor, with the assistance of the chief executive officer of the corporation, and the regional chief executive officer of the Maui regional system, or their designees, shall negotiate with a private entity to transfer the right and responsibility to manage, operate and otherwise provide health care services at one or more facilities of the Maui regional system, including Maui memorial medical center, Kula hospital and clinic, and Lanai community hospital, to a nonprofit management entity wholly-owned by the private entity; provided that the private entity submitted a statement of interest in response to a notice published in accordance with section 1-28.5 by the Maui regional system board, inviting private entities to submit statements of interest in acquiring the right and responsibility to manage, operate, and otherwise provide health care services in one or more of the Maui regional system's facilities.
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61	61	(b) Any agreement negotiated by the governor and entered into by the private entity and the governor, the corporation board, and the Maui regional system board, shall, at minimum, include a transfer completion date and a plan and schedule for completing the transfer that includes:
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63	63	(1) Provisions and deadlines for conducting and completing due diligence;
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65	65	(2) Provisions and a deadline to terminate the agreement before a transfer is completed, at the parties' respective option;
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67	67	(3) Provisions for winding-down operations at the transferred facility or facilities and for terminating the agreement in the event that the lease entered into pursuant to section 323F-54 is terminated before the lease expires or the private entity or its nonprofit management entity abandons or otherwise discontinues its provision of health care services in a transferred facility; and
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69	69	(4) Provisions to transfer or assign interests in equipment and furnishings, including any leases for the same; accounts receivable; medicare and other provider agreements; business and commercial licenses and registrations; intellectual property and goodwill; administrative, financial, and medical records and information; or any other interests or property of the Maui regional system facility or facilities to be transferred under this part, that the parties agree to transfer or assign.
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71	71	(c) On and after the transfer completion date for the transfer of one or more facilities of the Maui regional system to a private entity or its nonprofit management entity pursuant to this part, the State, the corporation, and the Maui regional system and its board shall cease to have any responsibility for or control over the management and operation of the facility or facilities transferred by the agreement pursuant to this part.
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73	73	(d) Beginning January 1, 2024, before entering into any new agreement or modifying or terminating any existing agreement entered into pursuant to this part, the chief executive officer of the corporation or the chief executive officers designee shall provide the governor with written comments, including any representations made by the private entity to the corporation or Maui regional system related to the management and operation of and provision of health care services at the facility or facilities transferred or being transferred by the agreement pursuant to this part."
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75	75	SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
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77	77	SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
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79	79	SECTION 5. This Act shall take effect upon its approval.
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83	83	INTRODUCED BY: _____________________________
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113	113	Report Title: Hawaii Health Systems Corporation; Maui Regional System Facilities; Public-Private Partnerships; Private Entity Description: Expands the definition of "private entity" to include business organizations that are authorized to transact business in the State, including nonprofit management entities that have a certificate of need or license to operate one or more community hospitals or hospitals serving a rural population licensed under the laws of any state. Beginning January 1, 2024, requires the Chief Executive Officer of the Hawaii Health Systems Corporation or the Chief Executive Officer's designee, before entering into any new agreement or modifying or terminating any existing agreement, to provide written comments to the Governor. The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
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119	119	Report Title:
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121	121	Hawaii Health Systems Corporation; Maui Regional System Facilities; Public-Private Partnerships; Private Entity
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125	125	Description:
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127	127	Expands the definition of "private entity" to include business organizations that are authorized to transact business in the State, including nonprofit management entities that have a certificate of need or license to operate one or more community hospitals or hospitals serving a rural population licensed under the laws of any state. Beginning January 1, 2024, requires the Chief Executive Officer of the Hawaii Health Systems Corporation or the Chief Executive Officer's designee, before entering into any new agreement or modifying or terminating any existing agreement, to provide written comments to the Governor.
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135	135	The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.