STAND. COM. REP. NO. 500

Honolulu, Hawaii

RE:    S.B. No. 1038

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Madam:

     Your Committee on Health, to which was referred S.B. No. 1038 entitled:

"A BILL FOR AN ACT RELATING TO MOLOKAI GENERAL HOSPITAL,"

begs leave to report as follows:

     The purpose of this measure is to ensure continuing health care services for the people of Moloka‘i.

     Specifically, this measure appropriates $2,000,000, in each year of the 2007-2009 fiscal biennium for the operating expenses of Moloka‘i General Hospital.

     Testimony in support of this measure was submitted by a member of the Maui County Council, Hawai‘i Primary Care Association, Healthcare Association of Hawaii, and Moloka‘i General Hospital.

     Your Committee finds that Moloka‘i General Hospital, the only hospital on the island of Moloka‘i, is a critical resource to approximately 7,500 residents of that island as well as visiting tourists.  It is the only twenty-four-hour medical emergency facility on the island that provides essential health care services meeting a wide variety of patients' needs.

     Your Committee further finds that medical costs are increasing while hospitals are experiencing reductions in health care payments from both government programs, such as Medicaid and Medicare, and health care insurance plans.  This financial strain is most felt in rural communities where patient volume and revenues do not necessarily meet the financial needs of the facility so that it may maintain the broad array of services and retain community health and hospital accreditation.  Therefore, your Committee finds the appropriation made by this measure is an important and valid use of State resources.

     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. 1038 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,

____________________________

DAVID Y. IGE, Chair