Posted on Apr 24, 1998 in Formal Opinions

Opinion Letter No. 98-02
April 24, 1998
Disclosure of Hospital Eligible Charges

Kona Community Hospital must disclose the eligible charges contained on contracts executed between itself and two private health care benefits companies. Eligible charges are the amounts that a health care benefits company uses to calculate and reimburse the Hospital for medical services that the Hospital provides to the health care benefits companies’ enrollees.

An agency is not required to disclose business and financial information if (1) the information is confidential business information, and (2) the disclosure would frustrate the agency’s legitimate government function. The Hospital alleged that disclosing the eligible charges would not frustrate its legitimate government functions.

Furthermore, the OIP determined that the eligible charges did not constitute confidential business information. Accordingly, as disclosure would not frustrate the agency’s legitimate government function, the eligible charges must be disclosed to the public.

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