Bill > SB3175

This bill establishes a state oversight framework for significant health care mergers, acquisitions, and other consolidation transactions, referred to as "material health care transactions," which involve changes in control or influence over entities like hospitals, insurers, or physician groups. It requires health care entities to provide advance written notice, at least 180 days before a transaction, to the state agency, detailing aspects like market share, pricing, and impacts on access to care. The State Health Planning and Development Agency will then conduct a comprehensive review to determine if the transaction is in the public interest, considering factors such as potential cost increases, reduced access, decreased competition, and negative effects on healthcare workers or public health systems. For certain "vertical consolidation" transactions, where entities at different levels of the healthcare supply chain merge (e.g., an insurer and a provider), legislative approval by concurrent resolution is required if the combined entity would control at least 25% of a market and is projected to significantly increase prices or premiums beyond benchmarks, or increase public expenditures. Failure to comply with these requirements can result in substantial civil penalties, including up to $1,000,000 per offense, and the possibility of unwinding the transaction.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=3175&year=2026