HI SB311

Establishes a process allowing the Governor to partner with healthcare management systems (nonprofit or public benefit corporations operating in Hawaii for at least 10 years) to assume operations of Hawaii Health Systems Corporation regional systems or individual health facilities.

Creates an advisory committee consisting of the Attorney General, Director of Finance, and corporation CEO to review and monitor any transition of HHSC operations to a new healthcare management system.

Requires transition plans to include provisions for improved governance, operational efficiencies, reduced state subsidies over five years, and protection of community healthcare needs.

Specifies that the State remains responsible for all pre-existing HHSC liabilities and collective bargaining obligations, while the healthcare management system gains exclusive operational control.

Repeals existing Section 323F-7.6 regarding transitions to new entities and requires HHSC to submit deficit-reduction plans to the legislature by 2016 and 2017.