STAND. COM. REP. NO. 734-00

                                 Honolulu, Hawaii
                                                   , 2000

                                 RE: H.B. No. 2534
                                     H.D. 2




Honorable Calvin K.Y. Say
Speaker, House of Representatives
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Finance, to which was referred H.B. No.
2534, H.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO CRITICAL ACCESS HOSPITALS,"

begs leave to report as follows:

     The purpose of this bill is to increase funding for Hawaii's
rural hospitals by reimbursing Critical Access Hospitals (CAH) on
a cost basis under the Medicaid program using matching federal
funds.

     The Department of Health, the Department of Human Services,
Hawaii Health Systems Corporations, the Healthcare Association of
Hawaii, the Hawaii Long-Term Care Association, Kahuku Hospital,
the State Executive Management Advisory Committee for the Public
Health Facilities, and an individual testified in support of this
bill.  The Hawaii Governments Employees Asscociation supported
the intent of this bill.

     Your Committee has amended this bill by:

     (1)  Clarifying that sections 346-1, 346-59, 346D-1, and
          346D-1.5, Hawaii Revised Statutes, will be reenacted in
          the form in which they read on June 30, 2000; and

     (2)  Making a technical, nonsubstantive changes for purposes
          of consistency and style.


 
 
 
                                 STAND. COM. REP. NO. 734-00
                                 Page 2

 
     As affirmed by the record of votes of the members of your
Committee on Finance that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2534, H.D. 1, as amended herein, and recommends that it pass
Third Reading in the form attached hereto as H.B. No. 2534, H.D.
2.

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



                                   ______________________________
                                   DWIGHT Y. TAKAMINE, Chair