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Legislative update on HHSC bill that proposes public-private partnership

March 10, 2014

As the Legislature has reached its midpoint, there remains one bill that could greatly impact the Hawaii Health Systems Corporation (HHSC) through a proposed public-private partnership. Senate Bill 3064, Senate Draft 2 proposes that a transition mechanism be developed to allow for HHSC in whole or part to partner with local non-profit hospitals. HGEA has been greatly involved with the evolution of this bill and continues to engage actively on this issue.

While we have testified in opposition to S.B. 3064, the understanding among the key stakeholders (HHSC, Abercrombie Administration, the House and Senate, UPW and HGEA) was that a “vehicle” bill would continue to move through the legislative process for formal discussion. There is no agreement on the proposed terms outlined in the bill. We continue to meet with the other groups involved to determine the best path to put HHSC on a more sustainable fiscal path. To date, the meetings held have focused on governance issues, continued funding, the nature of any kind of “partnership” that could result from passage of the bill, and employment issues. The next meeting is scheduled for Friday, March 21. HGEA has and will continue to advocate for the protection of employee rights and benefits, while considering how any changes could be achieved through fair negotiations.

We will continue to provide updates on the status of the bill as the session continues.

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