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The Honolulu Advertiser
Posted on: Sunday, June 22, 2008

COMMENTARY
High-quality healthcare helps us all

By Jim Tollefson

One of the top priority issues of The Chamber of Commerce of Hawai'i has consistently been the quality of healthcare, which includes increasing long-term-care capacity and access statewide, as well as improving payments to providers of essential healthcare services.

In the 2007 legislative session, the Legislature passed a bill that would provide much needed reimbursements to healthcare providers. The governor signed the bill into law, which became Act 284.

We recognize that the state is facing challenging issues that deservedly need attention. The slowing economy is having an impact on the state, business, and citizens of Hawai'i. One of the issues, however, affects everyone — the quality of healthcare.

Healthcare plays a crucial role in the economy and economic sustainability of businesses. The lack of these funds will not only dangerously deny citizens in need of healthcare, but it also will inflict damage on a healthcare system that is vital to Hawai'i's ability to continue economic growth in an increasingly competitive marketplace.

Healthcare is our second largest private industry, providing an important source of attractive, high-paying jobs. The sector is projected to show significant growth for years to come. Between 1990 and 2005, the number of jobs in the healthcare and social assistance fields in Hawai'i grew by 49 percent — outstripping job growth in trade and hospitality, the state's two other economic engines. The healthcare field, including ambulatory care services, hospitals, and nursing and residential care facilities, generates approximately $4 billion in revenues, nearly 45,000 jobs and a collective payroll of nearly $2 billion annually.

Accessible, quality care plays a major role in our ability to retain and recruit current and future employees. Hawai'i boasts one of the lowest unemployment rates in the nation. We are proud of that distinction, but the state's small, skilled labor pool carries a hidden downside because supply-side pressure means we must compete harder and better to continue sustained economic growth. Strong healthcare access must be part of the offer when we seek to attract skilled professionals and their families here.

A comprehensive, stable healthcare infrastructure is an important element of support and growth for business, including but not limited to the tourism and hospitality industry. Our economy and standard of living depends on the activity generated by visitors. Strong healthcare services are an important component of our state's ability to attract and serve potential visitors from the Mainland, the Pacific region and throughout the world.

Maintaining a quality and accessible healthcare system is vital to the welfare of Hawai'i's citizens, to the quality of life and to the state economy.

Physician reimbursement helps pay the out-of-pocket expenses of physicians who treat thousands of our most vulnerable citizens — the elderly, the poor, the blind and the disabled. The current low reimbursement rates pose a significant economic threat by eroding the ability of our employees, citizens and visitors to access the care they need when they need it. Too many physicians are being forced to consider following the physicians and specialists who have already left our state. Too many state and private healthcare providers are risking their financial stability because of growing reimbursement shortfalls.

We appreciate the governor and the Legislature for recognizing the critical situation of the healthcare system and supporting the effort to allocate the much-needed reimbursements to providers.

This fund, however, expires soon. Essentially, if the administration does not release the funds by June 30, the state would forfeit more than $10 million in federal matching funds as well, and a chance to invest more than $18 million in a struggling healthcare system that deserves our wholehearted support.

The Chamber of Commerce of Hawai'i considers the stability of our state's healthcare industry to be an equally valuable economic driver and an important ingredient for our employees, their families and for Hawai'i's tourism and hospitality customers, as well as for the health of the state of Hawai'i.

We hope that the funds associated with Act 284 will be released by June 30 to preserve our healthcare system and continue to make Hawai'i a better place to live and do business.

Jim Tollefson is president and CEO of The Chamber of Commerce of Hawai'i. He wrote this commentary for The Advertiser.