HI HB1075

Authorizes the Governor, Hawaii Health Systems Corporation Board, and Maui Regional System Board to negotiate and transfer one or more Maui regional health facilities (including Maui Memorial Medical Center, Kula Hospital and Clinic, and Lanai Community Hospital) to a private entity's nonprofit management entity.

Private entity must have a certificate of need to operate licensed hospitals in Hawaii and must have submitted a statement of interest in response to a public notice by the Maui Regional System Board.

State retains ownership of real property under a fixed-term lease with minimum 365-day termination notice; private entity gains exclusive control of facility management, operation, and health care service delivery upon transfer completion date.

State remains responsible for pre-transfer liabilities including accounts payable, debt, malpractice liabilities, and all post-employment benefits; private entity assumes liability for operations after transfer completion date.

Private entity's nonprofit management entity may request state operating and capital funding (capped at 2014 Maui Regional System appropriation level for first ten years) if it meets nonprofit standards, licensing requirements, audit and disclosure obligations, and commits to expanding primary care access and specialist services in Maui County.