STAND. COM. REP. NO.  320

 

Honolulu, Hawaii

                , 2007

 

RE:   H.B. No. 1378

 

 

 

 

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. 1378 entitled:

 

"A BILL FOR AN ACT MAKING AN EMERGENCY APPROPRIATION TO THE DEPARTMENT OF HEALTH,"

 

begs leave to report as follows:

 

     The purpose of this bill is to ensure the health and safety of residents of the north shore and the windward coast of Oahu by preventing the closure of Kahuku Hospital.

 

     Specifically, this bill makes an emergency appropriation of $950,000 for fiscal year 2006-2007, to fund a grant pursuant to chapter 42F, Hawaii Revised Statutes, to Kahuku Hospital to address the estimated cash shortfall projected for the first half of 2007, consisting of operating losses, the costs of Kahuku Hospital's Chapter 11 reorganization proceeding, and the transfer of Kahuku Hospital to the Hawaii Health Systems Corporation; provided that during the Regular Session of 2007, the Legislature authorizes such a grant.  The appropriation is to be expended by the Department of Health.

 

     Testimony in support of this bill was submitted by the Department of Health, the Board of Directors of Kahuku Hospital, Kahuku High and Intermediate School, the Council of the City and County of Honolulu, Brigham Young University Hawaii, Hawaii Reserves, Inc., the Healthcare Association of Hawaii, the Polynesian Cultural Center, United Public Workers AFSCME, Local 646, AFL-CIO, Koolau Loa Neighborhood Board #28, Kahuku Hospital Laboratory, and one hundred thirty-eight individuals.

 

     Your Committee finds that Kahuku Hospital is a twenty-five bed facility that provides emergency care, general acute care, surgery, skilled nursing, ancillary care, and other health care services to the residents of the north shore of Oahu from Waimea Bay to Kahana.  Because of continuing operating losses, the board of directors of Kahuku Hospital voted in November 2006 to file for chapter 7 reorganization to liquidate non-exempt assets and close down the hospital on December 31, 2006.

 

     Your Committee finds that it is in the public interest and for the public health, safety, and general welfare to keep Kahuku Hospital operating in order to serve the residents of the north shore of Oahu by enabling it to file for chapter 11 rather than for chapter 7 bankruptcy, which would allow the hospital to:  continue operations; preserve its hospital license; retain its certificate of need and critical access hospital designation; reorganize; and settle its debts.

 

     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. 1378 and recommends that it pass Second Reading 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