SB2949 Summary

• Establishes guidelines for transitioning the Hawaii Health Systems Corporation, regional systems, or combined regional systems into nonprofit corporations to improve efficiency and reduce state subsidies.

• Creates transition boards responsible for evaluating nonprofit transition plans, consulting with medical staff and communities, selecting a plan, and monitoring the nonprofit's performance against proposed outcomes.

• Requires transition plans to include improved governance structures, operational efficiencies, reduced reliance on state subsidies, personnel systems exempt from state civil service rules, and protection of healthcare quality in served communities.

• Transfers pre-1996 liabilities and collective bargaining contract liabilities to the State, making the State responsible for these obligations during the transition period.

• Allows Hawaii Health Systems Corporation employees who are retirement system members to elect early retirement benefits if they meet age and service requirements, as an alternative to reduction-in-force procedures.