REPORT TITLE:
$$, Hana Comm. Health Center. 

DESCRIPTION:
Makes appropriations of $200,000 for FY 1998-1999 and $995,720
for FY 1999-2000, to assist Hana community health center to meet
operational expenses. (SD1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        992
THE SENATE                              S.B. NO.           S.D. 1
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

MAKING AN APPROPRIATION FOR THE HANA COMMUNITY HEALTH CENTER.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  The legislature finds that Act 263, Session Laws
 
 2 of Hawaii 1996, mandated the transfer of the Hana medical center
 
 3 to the Hana community health center, a nonprofit organization
 
 4 with a guarantee of state financial support as needed.  The
 
 5 legislature further finds that the Hana community health center
 
 6 continues to operate as the only licensed medical facility
 
 7 serving the isolated rural East Maui community.  Therefore, it is
 
 8 critical that the Hana community health center continue to
 
 9 provide the broad range of basic and essential services for area
 
10 residents, who would otherwise be faced with seeking services
 
11 located in central Maui, which is more than a two-hour drive from
 
12 the Hana district.
 
13      The legislature further finds that pursuant to the transfer,
 
14 the Hana community health center and the Hawaii health systems
 
15 corporation negotiated a subsidy agreement of $764,820, which
 
16 included a clause indicating that Hana community health center
 
17 could request additional financial assistance based upon actual
 
18 costs.  This clause was specifically included within the
 
19 agreement based upon a mutual understanding that the subsidy
 

 
Page 2                                                     992
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1 amount might not be sufficient to cover unanticipated costs at
 
 2 Hana community health center, such as pre-hospital emergency
 
 3 medical services.  However, in an October 1997 letter from the
 
 4 Hawaii health systems corporation, the Hana community health
 
 5 center was advised that the negotiated subsidy was being reduced
 
 6 by $34,000 based upon a reduction in funding of forty-eight per
 
 7 cent being imposed upon the Hana community health center.  This
 
 8 reduction seriously jeopardizes the continued operations of the
 
 9 Hana community health center, as its actual operating expenses
 
10 are already exceeding its projections based upon an increased
 
11 patient volume of twenty-six per cent between July 1 and
 
12 October 31, 1997.  This increase in patient volume is due to an
 
13 overall improvement in the level and quality of services being
 
14 provided by the Hana community health center.
 
15      The purpose of this Act is to restore to the Hana community
 
16 health center adequate funding to maintain its operations during
 
17 the coming fiscal biennium and thereby comply with the negotiated
 
18 agreement and promise of state financial assistance.
 
19      SECTION 2.  There is appropriated out of the general
 
20 revenues of the State of Hawaii the sum of $200,000, or so much
 
21 thereof as may be necessary for fiscal year 1998-1999, for
 
22 emergency operational expenses for the Hana community health
 
23 center.
 

 
Page 3                                                     992
                                     S.B. NO.           S.D. 1
                                                        
                                                        

 
 1      SECTION 3.  There is appropriated out of the general
 
 2 revenues of the State of Hawaii the sum of $995,720, or so much
 
 3 thereof as may be necessary for fiscal year 1999-2000, for
 
 4 operational expenses for the Hana community health center.
 
 5      SECTION 4.  The sums appropriated in sections 2 and 3 of
 
 6 this Act shall be expended by the department of health for the
 
 7 purposes of this Act.
 
 8      SECTION 5.  This Act shall take effect on July 1, 1999,
 
 9 provided that section 2 of this Act shall take effect retroactive
 
10 to July 1, 1998.