HRS §346G-9
Penalties for not paying the hospital fee
If a hospital does not pay its full fee on time, it must pay an extra penalty of 2% of the unpaid amount, unless the department waives it for a good reason. The department can also withhold payments, suspend or revoke the hospital's license, or set up an installment plan.
The statute, as written — Penalties for failure to pay the hospital sustainability fee
(a) If a hospital fails to pay the full amount of any hospital sustainability fee when due, there shall be added to the fee, unless waived by the department for reasonable cause, a penalty equal to two per cent of the fee that was not paid when due. Any subsequent payments shall be credited first to unpaid fee amounts beginning with the most delinquent installment rather than to penalty or interest amounts. (b) In addition to the penalty imposed by subsection (a), the department may seek any of the following remedies for the failure of any hospital to pay its fee when due: (1) Withholding any medical assistance reimbursement payments until such time as the fee amount is paid in full; (2) Suspension or revocation of the hospital license; or (3) Development of a plan that requires the hospital to pay any delinquent fee in installments.
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