Honorable Robert Bunda

President of the Senate

Twenty-Third State Legislature

Regular Session of 2006

State of Hawaii

Sir:

Your Committee on Health, to which was referred S.B. No. 3156 entitled:

begs leave to report as follows:

The purpose of this measure is to appropriate funds to Molokai General Hospital for operating costs.

Your Committee received testimony in support of the measure from the Department of Health, the Office of Hawaiian Affairs, the Healthcare Association of Hawaii, and Molokai General Hospital.

Your Committee finds that Molokai General Hospital generally receives most of its financial and management support as a subsidiary of Queen's Health Systems. However, as the Healthcare Association of Hawaii noted hospitals face continued high costs and decreasing reimbursements. Rural hospitals in particular are in financial straits because they do not have the volume of patients necessary to support the broad array of services needed to maintain community health. Sustaining services at Molokai General Hospital is critical to the health and safety of residents and visitors because it is the sole hospital serving the island community of Molokai.

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. 3156 and recommends that it pass Second Reading and be referred to the Committee on Ways and Means.