Hospital sustainability program special fund

(a) There is created in the state treasury the hospital sustainability program special fund to be administered by the department into which shall be deposited all moneys collected under this chapter. (b) Moneys in the hospital sustainability program special fund shall consist of: (1) All revenues collected or received by the department from the hospital sustainability fee as required by this chapter; (2) Any interest or penalties levied in conjunction with the administration of this chapter; and (3) Any designated appropriations, federal funds, donations, gifts, or moneys from any other sources. (c) Moneys in the hospital sustainability program special fund shall be used exclusively as follows: (1) No less than ninety per cent of the revenue from the hospital sustainability fee shall be used for one or more of the following purposes: (A) To match federal medicaid funds, with the combined total to be used to enhance payments to medicaid managed care health plans for the sole purpose of increasing medicaid payments to private hospitals; (B) To match federal medicaid funds for Hawaii's medicaid disproportionate share hospital allotment, as authorized by current federal law for private hospitals; (C) To match federal medicaid funds for a private hospital upper payment limit pool; or (D) To match federal medicaid funds with the combined total to be used to enhance payments to medicaid managed care health plans for the purpose of increasing medicaid payments to private hospitals through quality or access incentive programs; and (2) Ten per cent of the moneys in the hospital sustainability program special fund may be used by the department for other departmental purposes. (d) The department shall use federal funds derived from state hospital certified expenditures to make payments to state hospitals and may receive intergovernmental transfers from the state hospitals to support payments and increased capitation rates to health plans for the benefit of the state hospitals. During any period in which the hospital sustainability fee is in effect, certified expenditures of state hospitals shall not be used to make or support payments to private hospitals.