Report Title:

Molokai General Hospital; GO Bonds; Appropriation


Authorizing the issuance of general obligation bonds and making an appropriation for Molokai General Hospital to fund phase II of Molokai General Hospital's renovation project.


S.B. NO.









authorizing the issuance of general obligation bonds and making an appropriation for molokai general hospital.



SECTION 1. Molokai General Hospital, a critical access hospital, is the only hospital on the island of Molokai and serves a population of approximately eight thousand residents and visitors. The hospital is a thirty-bed facility with fourteen acute and sixteen long-term care beds. It provides twenty-four hour emergency care, urgent care, acute medical and pediatric inpatient care, low risk midwifery care, radiology services, ultrasound services, laboratory services, respiratory therapy, physical therapy, and office and clinic space for visiting medical and surgical specialists.

Presently, Molokai General Hospital is in the process of renovating its facilities as its forty-year old physical plant does not meet current building safety codes and is plagued with numerous problems, including a leaking roof. The renovation of Molokai General Hospital is divided into two funding phases. Phase I, which is fully funded, is an addition to the hospital that will house all inpatient care services. Phase II is a renovation of the existing hospital building. Upon completion of phase II, Molokai General Hospital will centralize all non-inpatient care services in this building. These care services include: laboratory services, physical therapy, a women's health center, the medical records department, a pharmacy, dietary services, hospital administration, the hospital's billing department, cardiac treadmill stress testing, chemotherapy, teaching-conference rooms for medical education, and an outpatient surgical center for special procedures.

Phase II of this renovation project requires $4,100,000 in funding. Molokai General Hospital has secured funding commitments from the county of Maui for $500,000, in the budget of the county of Maui for fiscal years 2004-2005 and 2005-2006. Phase II of the renovation project will provide a much needed upgrade in the facilities of Molokai General Hospital. This, in turn, will insure compliance with applicable building codes. Phase II of the renovation project will also enable Molokai General Hospital to provide critical outreach services to a greater number of Molokai residents. The administration and members of the board of trustees of Molokai General Hospital are also actively engaged in fundraising to secure $1,500,000 from private foundations.

The purpose of this Act is to appropriate moneys to provide financial support for phase II of Molokai General Hospital's renovation project.

SECTION 2. The director of finance is authorized to issue general obligation bonds in the sum of $1,600,000, or so much thereof as may be necessary, and the same sum, or so much thereof as may be necessary, is appropriated for fiscal year 2004-2005 for the purpose of providing financial support for phase II of Molokai General Hospital's renovation project.

SECTION 3. The appropriation made for the capital improvement project authorized by this Act shall not lapse at the end of the fiscal biennium for which the appropriation is made; provided that all moneys from the appropriation unencumbered as of June 30, 2006, shall lapse as of that date.

SECTION 4. The sum appropriated shall be expended by the department of health for the purposes of this Act.

SECTION 5. This Act shall take effect on July 1, 2004.