Hawaii Health Systems Corp. is hoping this will be the year for legislation paving the way for privatization.

The Senate Health Committee this week passed Senate Bill 3064, which allows for the HHSC facilities to partner with or be purchased by a local nonprofit provider such as Hawaii Pacific Health, The Queen’s Health Systems or Kaiser Permanente Hawaii.

The measure also prohibits any decrease in services for at least five years, continues the state’s financial support and protects workers’ already negotiated benefits.

"We have a long-standing relationship with those who provide health care in the state already. Queen’s, HPH and Kaiser understand the needs of the people of Hawaii," said Senate Health Committee Chairman Josh Green (D, Naalehu-Kailua-Kona). "They know our health care landscape, and so we also know that after three or four years they won’t leave. People trust them."

The financially struggling public hospital system, which acts as the safety net for communities where medical care is lacking, can no longer sustain increasing costs of health care and continue providing the same level of services, according to HHSC officials.

HHSC, which received $94.9 million in state subsidies this year in addition to a $7.3 million emergency appropriation, is once again appealing to lawmakers to allow a larger entity to take control of the mostly rural facilities with 1,275 beds. HHSC is now asking for an additional $18.2 million just to make it through this year.

"The number keeps on going up every year. When does it stop?" said Wesley Lo, chief executive officer of HHSC’s Maui region. "How do you stop that and yet still provide quality care? It’s not sustainable, so we need to look for a new model."

Last year, lawmakers considered legislation that would enable the privatization of eight public hospitals on Maui, Lanai and Hawaii island with Phoenix-based nonprofit Banner Health. The new proposal closes the door for mainland groups to purchase the troubled facilities.

Green said his intent is to eventually decrease by half the state’s subsidy for HHSC.

"By 2020 we can cut it in half and save taxpayers $60 million," he added. "That would be a very substantial achievement for the health care safety net in Hawaii."

HHSC comprises 12 facilities and four affiliates: Kahuku Medical Center, Roselani Place, Yukio Oku­tsu State Veterans Home and Ali‘i Health Center.

The bill now moves on to the Senate Ways and Means Committee.