STAND. COM. REP. NO. 478

                                   Honolulu, Hawaii
                                                     , 1999

                                   RE:  S.B. No. 1616
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 1999
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 1616 entitled: 

     "A BILL FOR AN ACT MAKING AN APPROPRIATION FOR MOLOKAI
     GENERAL HOSPITAL,"

begs leave to report as follows:

     The purpose of this measure is to make an appropriation for
operating costs for Molokai General Hospital.

     Testimony in support of the measure was received from the
Office of Hawaiian Affairs, and three members of the Maui County
Council.

     Your Committee finds that Molokai General Hospital fills a
public need by providing the people of Molokai and visitors with
primary medical care.  It is the only hospital providing basic
medical diagnostic and treatment services for a population base
of 7,000 persons (including visitors).  Of Molokai's resident
population, over 50% are native Hawaiian.  Visitors to the island
average 70,000 per year.

     Molokai, the fifth largest island in the State, is a rural
community, with 38% of the families subsisting off the land.
Molokai's economy has been depressed since pineapple plantations
were phased out and unemployment rates average 17%.

     Molokai General Hospital is requesting financial support
from the State to meet operational expenses in order to provide

 
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quality healthcare to the community of Molokai.  Seventy-five per
cent of the hospital's patients are Medicare, Medicaid, and
MedQuest patients.  Reimbursements from these sources continue to
diminish.  Molokai General Hospital continues to explore and
employ every alternative to contain costs but as reimbursements
continue to decline, the survival of the hospital is in jeopardy.

     Your Committee finds that without funding assistance from
the State, Molokai General Hospital could not continue to provide
the level of patient care and services currently being provided.  

     As affirmed by the record of votes of the members of your
Committee on Health and Human Services that is attached to this
report, your Committee is in accord with the intent and purpose
of S.B. No. 1616 and recommends that it pass Second Reading and
be referred to the Committee on Ways and Means.

                                   Respectfully submitted on
                                   behalf of the members of the
                                   Committee on Health and Human
                                   Services,



                                   ______________________________
                                   SUZANNE CHUN OAKLAND, Chair

 
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