STAND. COM. REP. NO. 2235

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  S.B. No. 3016
                                        




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Health and Human Services, to which was
referred S.B. No. 3016 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
Molokai General Hospital.

     Your Committee received testimony in support of this measure
from the Office of Hawaiian Affairs, two Maui County Councilmen,
Molokai General Hospital, Hawaii State Primary Care Association,
Kilohana Elementary School, NA PU`UWAI, Papa Ola Lokahi, and
Queen's Health Systems.

      Molokai General Hospital is the only hospital on the island
of Molokai, and serves a population of approximately 6,700
residents.  Although Molokai General Hospital is not a state
hospital, it receives a monthly subsidy from the State as a
community hospital, and also receives aid from the county of Maui
and federal grants and contracts.  Molokai General Hospital
receives most of its financial and management support from being
a subsidiary of Queen's Health Systems.  However, because of the
Queen's Health Systems' recent decrease in revenues and their
decision to downsize, Molokai General Hospital's financial
support has been severely affected.  Thus, Molokai General
Hospital must rely on increased financial support from the State,
the county of Maui, and federal grants.

 
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     According to testimony of Molokai General Hospital, it has
experienced annual budget deficits and reduced reimbursements
from Medicare and Medicaid.  The hospital's parent company, the
Queen's Health System, can no longer extend the same level of
financial support.  According to testimony of the Queen's Health
System, it is committed to continuing its support of the
hospital, but if current trends continue, it may not be able to
maintain its support at the levels it has in the past.

     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. 3016 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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