Bill > HB1179

This bill creates a framework for licensing rural emergency hospitals (REHs) in Hawaii, addressing the challenge of rural hospital closures by providing a new healthcare designation. The legislation allows the Department of Health to license a hospital as an REH if it meets specific criteria, including electing to receive the Medicare REH designation, providing emergency treatment with an average stay of 24 hours or less, and meeting federal requirements. The bill is specifically targeted at critical access hospitals that were operating as of December 27, 2020, offering them a pathway to transition to the new REH model. The REH concept allows hospitals to focus on emergency, observation, and outpatient services while eliminating high-cost inpatient care, with potential financial benefits like a fixed monthly Medicare payment of approximately $3.2 million annually and a 5% higher reimbursement for outpatient services. The bill also clarifies Medicaid reimbursement policies for hospitals transitioning to the REH designation, ensuring that facilities can maintain financial stability while adapting to community healthcare needs. Using the example of Lanai Community Hospital, the bill highlights how this designation could help rural hospitals better serve their communities by reallocating resources to critical services like emergency care and long-term nursing care.

Budget and Finance, Business and Industry, Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=1179&year=2025