STAND. COM. REP. NO.  141

Honolulu, Hawaii

                , 2007

RE:   H.B. No. 965

      H.D. 1

Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

Sir:

     Your Committee on Health, to which was referred H.B. No. 965 entitled:

"A BILL FOR AN ACT RELATING TO A GRANT TO KAHUKU HOSPITAL,"

begs leave to report as follows:

     The purpose of this bill is to sustain essential health care coverage for the residents of the North Shore of Oahu by appropriating $950,000 as a grant to Kahuku Hospital to:

     (1)  Maintain operations;

     (2)  Cover Chapter 11 bankruptcy reorganization costs; and

     (3)  Assist in a potential transfer of hospital operations to the Hawaii Health Systems Corporation.

     The Department of Health, a member of the Honolulu City Council, the principal of Kahuku High and Intermediate School, Koolau Loa Neighborhood Board No. 28, Healthcare Association of Hawaii, United Public Workers, Polynesian Cultural Center, and numerous concerned individuals supported this bill.

     Your Committee finds that Kahuku Hospital provides vital health care services to the North Shore area of Oahu.  Therefore, state assistance in maintaining this hospital is important.  However, recognizing the tremendous financial stress most of Hawaii's hospitals are under, your Committee finds that more information is necessary to ensure that the State's health care system is not irreparably damaged by the proposed acquisition of Kahuku Hospital.

     Your Committee has amended this bill by:

     (1)  Deleting the appropriation amount to encourage further discussion; and

     (2)  Making technical, nonsubstantive changes for 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. 965, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 965, H.D. 1, and be referred to the Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Health,

____________________________

JOSHUA B. GREEN, M.D., Chair