SB463 Summary

• Extends the Hospital Sustainability Program through June 30, 2021 (previously set to expire June 30, 2019) to maintain federal matching funds for Medicaid hospital payments.

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

• Expands the definition of "private hospital" subject to the fee to include all currently operating hospitals except those operated by Hawaii Health Systems Corporation or charitable hospitals with net patient revenue below 40% of operating expenses.

• Removes exemptions for children's hospitals and rehabilitation hospitals from outpatient care fees, and eliminates the revenue threshold exemption for hospitals with less than $57 million in annual outpatient revenue.

• Appropriates funds from the Hospital Sustainability Program Special Fund for fiscal years 2019-2020 and 2020-2021 to support Medicaid managed care rate enhancements for private hospital reimbursements.