HB1270 Summary

• Extends the hospital sustainability program through June 30, 2021 (previously set to expire June 30, 2019)

• Increases the allowable hospital sustainability fee cap from 3.5% to 4% of net patient service revenue for both inpatient and outpatient care

• Redefines "private hospital" to include all currently operating hospitals except those operated by Hawaii Health Systems Corporation and charitable hospitals with net patient revenue below 40% of operating expenses

• Simplifies exemptions from outpatient fees to include only federal hospitals and public hospitals, removing previous exemptions for children's hospitals, rehabilitation hospitals, and hospitals with revenue below $57,000,000

• Appropriates $88,000,000 from the hospital sustainability program special fund for each of fiscal years 2019-2020 and 2020-2021 to enhance Medicaid managed care reimbursement rates to private hospitals