Council committee advances $5.46M transfer to extend medical‑respite contracts for houseless clients

The Committee on Budget on July 21 recommended reporting out Resolution 25‑203, a request to transfer up to $5,460,000 from general fund monies set aside for homeless activities to the Emergency Medical Services activity to extend contracts with Premier Medical Group and North Shore Mental Health. Deputy Director Ian Santee of the Emergency Services Department said the funding is a bridge after federal support (FRF funds) ended June 30 and while the city pursues reimbursement from the state.

Why it matters: the two providers operate medical‑respite facilities that remove medically vulnerable people from the street, provide medical and mental‑health treatment, and connect residents with housing and documentation services. Santee told the committee the two sites together can house roughly 80 people at a time (Premier Medical Group / Aʻala respite ~60 beds; North Shore Mental Health at Leahi Hospital ~24 beds, with a confined 24‑bed wing), and that providers have helped over 200 unhoused individuals in about a year and a half.

Key details: the committee was told the transfer request splits roughly $3,000,000 to Premier Medical Group and $2,400,000 to North Shore Mental Health and would fund contracts until the end of the calendar year. Santee said the city is working with state partners and the Department of Human Services to secure funds that could reimburse a portion of the city’s costs — he estimated potential reimbursements from the state in the range of 80–90% once state contracting is executed, with an anticipated October timing for those agreements.

The nut graf: the transfer is intended to maintain operations of two medical‑respite programs that provide medical stabilization, mental‑health services and housing navigation while the city and state finalize reimbursements; the committee advanced the transfer but sought additional written information on occupancy and comparative program costs.

Committee questions and concerns: council members asked about occupancy levels (North Shore reported 18 of 24 beds filled at a check during the hearing; Premier operates its site with in/out privileges for clients) and about potential Medicaid reimbursements tied to the state’s 1115 demonstration waiver for recuperative care. Santee said discussions with Medicaid were underway but that the current city contracts do not yet provide Medicaid reimbursement; if Medicaid eligibility is established, the city expects that reimbursement could reduce the city’s net cost in future contracting cycles. Council members also asked about alternatives and whether other providers (San Island Treatment Center, Hāna Māka‑type providers) were being used.

Outcome: the chair recommended that Resolution 25‑203 be reported out for adoption.