After Payment Transformation: The Fee-for-Service and Capitation Crossroads

Hawaiʻi providers face a mandatory transition, since extended to January 2027, from payment transformation to fee-for-service. Both reimbursement models are severely underfunded in Hawaiʻi.

Hawaiʻi providers face a mandatory transition, since extended to January 2027, from payment transformation to fee-for-service. Both reimbursement models are severely underfunded in Hawaiʻi.

Key findings

• The 60-day FFS transition creates closure risk for Neighbor Island clinics.
• Both PT and FFS are severely underfunded in Hawaiʻi.
• HMA has raised the timeline concern directly with HMSA.

Suggested citation: Hawaiʻi Healthcare Task Force. (2026). After Payment Transformation: The Fee-for-Service and Capitation Crossroads. https://hawaiihealthcaretaskforce.org/reports/after-payment-transformation

Authors: Esther Smith