STAND. COM. REP. NO.  1743-08


Honolulu, Hawaii

                , 2008


RE:   S.B. No. 2542

      S.D. 2

      H.D. 2





Honorable Calvin K.Y. Say

Speaker, House of Representatives

Twenty-Fourth State Legislature

Regular Session of 2008

State of Hawaii




     Your Committee on Finance, to which was referred S.B. No. 2542, S.D. 2, H.D. 1, entitled:




begs leave to report as follows:


     The purpose of this bill is to ensure that the community health center system remains financially viable and stable in the face of the increasing needs of the population of uninsured and underinsured residents.  Specifically, this bill establishes a process that enables community health centers and rural health clinics to receive supplemental Medicaid payments and seek modifications to their scope of services.  In addition, this measure appropriates funds to adequately pay federally qualified community health centers for direct medical care services for the uninsured.


     The Hawaii Primary Care Association, Kalihi-Palama Health Center, West Hawaii Community Health Center, Inc., Hamakua Health Center, Inc., Waikiki Health Center, Waimanalo Health Center, Hawaii Pacific Health, Kauai Health Center, and a concerned individual testified in support of this bill.  The Department of Human Services and Waianae Coast Comprehensive Health Center offered comments.


     Your Committee has amended this bill by:


     (1)  Permitting, rather than requiring, DHS to implement the statutory provisions; and


     (2)  Making technical, nonsubstantive amendments for clarity, consistency, and style.


     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 S.B. No. 2542, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Third Reading in the form attached hereto as S.B. No. 2542, S.D. 2, H.D. 2.


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