Honorable Robert Bunda

President of the Senate

Twenty-First State Legislature

Regular Session of 2001

State of Hawaii

Sir:

Your Committee on Health and Human Services, to which was referred H.B. No. 1587 entitled:

begs leave to report as follows:

The purpose of this measure is to clarify that an acquisition by a nonprofit organization of an ownership interest in a hospital is subject to review and approval by the State Health Planning and Development Agency (SHPDA) and the Attorney General.

Your Committee received testimony in support of this measure from SHPDA and the Hawaii Coalition for Health.

Your Committee finds that the current language of sections 323D-71 and 323D-72, Hawaii Revised Statutes, is ambiguous as to whether certain hospital acquisitions are subject to review and approval by SHPDA and the Attorney General.

Your Committee finds that due to the importance of effective and readily available health care, it is imperative that SHPDA and the Attorney General have the means to ensure that every hospital acquisition in Hawaii will benefit both patients and the State.

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 H.B. No. 1587 and recommends that it pass Second Reading and be referred to the Committee on Commerce, Consumer Protection and Housing.