STAND. COM. REP. NO. 1465

Honolulu, Hawaii

, 2021

RE: S.B. No. 506

S.D. 2

H.D. 1

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sir:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 506, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE ISSUANCE OF SPECIAL PURPOSE REVENUE BONDS TO ASSIST WAHIAWA GENERAL HOSPITAL,"

begs leave to report as follows:

The purpose of this measure is to authorize the issuance of special purpose revenue bonds to assist Wahiawa General Hospital with its long-term debt restructuring.

Your Committee received testimony in support of this measure from Wahiawa General Hospital and the Hawaii Nurses' Association. Your Committee received comments on this measure from the Department of Budget and Finance.

Your Committee finds that for over the past fifteen years, Wahiawa General Hospital has experienced financial difficulties due to several circumstances, including the reopening of The Queen's Medical Center West Oahu in Ewa, Oahu; reductions in Medicare, Medicaid, and private insurance reimbursements; new requirements under the federal Patient Protection and Affordable Care Act; the ongoing shortage of physicians in the State; uncertainty in the availability of federal and state funding caused by instability in federal health care policy; and an increasing need for the provision of indigent care, which includes the homeless population. Additionally, the COVID-19 pandemic has created even further financial challenges for Wahiawa General Hospital. Because of these financial difficulties, Wahiawa General Hospital has had to cut a few of its programs, services, and personnel while allowing basic infrastructure repair and maintenance needs to go unmet.

Your Committee recognizes that Wahiawa General Hospital is important to providing a continuum of health care services in Hawaii. Your Committee believes that this measure will enable Wahiawa General Hospital to restructure its debt and position itself to continue its long-standing mission of serving the health care needs of Central Oahu, the North Shore, and other communities.

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 506, S.D. 2, H.D. 1, and recommends that it be referred to your Committee on Finance.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

AARON LING JOHANSON, Chair