HB 1002 Summary

• Extends the Hospital Sustainability Program, originally established in 2012, by two additional years through June 30, 2021, to support hospital financial sustainability and Medicaid patient access

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

• Removes exemptions from hospital sustainability fees for rehabilitation hospitals and hospitals with net outpatient revenues under $57,000,000, while maintaining exemptions for children's, federal, public, and psychiatric hospitals

• Extends the period for using hospital sustainability fee revenues and federal matching funds to enhance Medicaid managed care health plan capitated rates from fiscal years 2017-2019 to fiscal years 2019-2021

• Appropriates $75,000,000 from the Hospital Sustainability Program Special Fund for each of fiscal years 2019-2020 and 2020-2021 to be expended by the Department of Human Services