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Harry Kim <br />Mayor <br />County of Hawaii <br />Office of the Mayor <br />25 Aupuni Street, Suite 2603 • Hilo, Hawai'i 96720 • (808) 961-8211 . Fax (808) 961-6553 <br />KONA: 74-5044 Ane Keohokalole Hwy., Bldg C • Kailua-Kona, Hawai'i 96740 <br />(808)323-4444 . Fax(808)323-4440 <br />January 31, 2020 <br />Representative John M. Mizuno, Chair <br />Representative Bertrand Kobayashi, Vice Chair <br />Committee on Health <br />Hawaii State Legislature <br />Dear Chair Mizuno, Vice Chair Kobayashi, and Committee Members: <br />RE: HB 2105, Relating to Collective Mediation by Physicians <br />Roy Takemoto <br />Managing Director <br />Barbara J. Kossow <br />Deputy Managing Director <br />Hawai`i's healthcare system is in crisis. We do not have enough providers, and <br />many of the providers we have are at or near retirement age. There is little prospect <br />that we will somehow generate enough new providers to replace those we are losing, <br />and the situation gets worse with every passing year. <br />The Legislature has actively tried to address the problem with innovative <br />approaches, but it is clear that more must be done. If we do not improve the economics <br />of practicing medicine, we will not have enough medical practitioners to meet the needs <br />of our citizenry. We are at a breaking point. <br />There are many reforms to be tried, but one of the most promising is to allow <br />collective action by physicians when dealing with health benefit plans. Such an <br />innovation will not be without cost—if the plans have to pay out more, they will charge <br />higher premiums. But the alternative—the status quo—is unacceptable. It is time to <br />authorize "collective mediation." <br />hope you will approve HB 2105. <br />Res tfully Submitted, <br />rry Kim <br />MAYOR <br />County of Hawaii is an Equal Opportunity Provider and Employer. <br />