STAND. COM. REP. NO. 2917

Honolulu, Hawaii

RE:    H.B. No. 3161

       S.D. 1

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii

Madam:

     Your Committee on Health, to which was referred H.B. No. 3161 entitled:

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO THE HAWAII HEALTH SYSTEMS CORPORATION,"

begs leave to report as follows:

     The purpose of this measure is to ensure that the Hawaii Health Systems Corporation can pay for the operation and provision of current levels of service at its facilities.

     Specifically, this measure makes an emergency appropriation in the amount of $14,000,000 to be used by the Hawaii Health Systems Corporation to pay accounts payable within forty-five days from the date of the invoice for Hawaii Health Systems Corporation's facilities.

     Your Committee received testimony in support of this measure from the Hawaii Health Systems Corporation, the Kauai Regional Board of the Hawaii Health Systems Corporation, the Oahu Regional Board of the Hawaii Health Systems Corporation, the East Hawaii Regional Board of the Hawaii Health Systems Corporation, Hilo Medical Center, Kona Community Hospital, Maui Memorial Medical Center, Hawaii Government Employees Association, and the United Public Workers/AFSCME, Local 646.

     Your Committee finds that the Hawaii Health Systems Corporation is in a financial crisis and unable to pay many of its vendors within a reasonable time frame.  Your Committee further finds that this emergency appropriation is necessary to ensure the protection of public health and the provision of essential health care services.

     Your Committee is aware that Maui Memorial Medical Center requires additional funds to continue its operations at current levels.  Your Committee also is aware that Maui Memorial Medical Center currently is engaged in negotiations to obtain a loan for this purpose and it is likely that the loan will close prior to the time this measure takes effect.  To ensure continued operations at Maui Memorial Medical Center, your Committee has amended this measure to appropriate an additional $11,000,000 and to clarify that that while the appropriation of $14,000,000 to the Hawaii Health Systems Corporation is made unconditionally, the additional sum of $11,000,000 will be appropriated for Maui Memorial Medical Center only if the operating loan currently under negotiation fails to close by the time this measure takes effect. 

     Your Committee further amended this measure by making technical, nonsubstantive changes for the purposes of clarity, consistency, and style.

     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 H.B. No. 3161, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 3161, S.D. 1, 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