SB 314 Summary

• Makes the Nursing Facility Sustainability Program permanent by removing the December 31, 2023 repeal date and eliminating associated sunset provisions.

• Increases the nursing facility sustainability fee cap from 5.5% to 6% of net patient service revenue and changes the fee calculation basis from net patient service revenue to total resident days.

• Makes permanent the exemptions of the Nursing Facility Sustainability Program Special Fund from central service expenses and administrative expenses assessments under HRS §36-27(a) and §36-30(a).

• Repeals chapter 346E, Hawaii Revised Statutes (Nursing Facility Tax), replacing it with the sustainability fee program as the mechanism for supporting nursing facilities and drawing down federal Medicaid matching funds.

• Appropriates funds from the Nursing Facility Sustainability Program Special Fund to the Department of Human Services for fiscal years 2023-2024 and 2024-2025 for program purposes.