Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2003

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 1509 entitled:

begs leave to report as follows:

The purpose of this measure is to provide a grant-in-aid to Kahuku Hospital to enable it to continue providing medical services that include emergency room operations and inpatient and outpatient care for the underinsured.

Testimony supporting this measure was received from Kahuku Hospital, Estate of James Campbell, Hawaiian Marine Enterprises, and two individuals.

Your Committee finds that Kahuku Hospital is one of six critical access hospitals in the State that serves a rural population of approximately 20,000 residents of North Shore, Oahu, and the 1,000,000 tourists that visit the area annually. Throughout the years, Kahuku Hospital has endured severe budget constraints while serving a growing population. The challenges are further exacerbated by the rise in the number of uninsured individuals, the increase in medical malpractice insurance premiums, and the increase in wages to keep pace with the job market. Despite these challenges, Kahuku Hospital has served the North Shore area diligently with high quality medical services. However, Kahuku Hospital faces serious financial challenges in the upcoming fiscal years. Your Committee believes that the grant-in-aid provided in this measure is imperative for Kahuku Hospital to maintain its level of services to the community.

As affirmed by the record of votes of the members of your Committee on Health that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 1509 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.