The state Senate approved $7.3 million in emergency funding Tuesday to sustain two rural Kauai hospitals through spring.
The Senate passed House Bill 3, unamended, to help keep the Hawaii Health Systems Corp. Kauai regional health care system afloat. Sen. Sam Slom (R, Diamond Head-Kahala-Hawaii Kai) was the lone opponent of the bill.
The Kauai region operates Samuel Mahelona Hospital, Kauai Veterans Memorial Hospital and three physician clinics in Waimea, Kalaheo and Port Allen.
The House passed the bill last week after amendments made by the Health and Finance committees to increase the appropriation to $7.3 million from $2.5 million. The agency testified more money is needed to continue services.
The bill goes to Gov. Neil Abercrombie’s office.
During the floor vote at the state Capitol Tuesday, Slom said he is concerned with constantly "bailing out"the agency and does not consider the appropriation emergency funding if it’s sought year after year. Slom said the agency had shown a lack of responsibility, failing to deal with its financial problems for two decades.
"We got to hold them accountable. We can’t always give them more money,"he said.
Lawmakers supporting the bill said residents would suffer and facilities would shut down if they don’t receive funding.
"This gives our hospitals the opportunity to keep their doors open, provide services and start proceeding on changes," said Sen. Ronald Kouchi (D, Kauai-Niihau).
The money will help pay off a $2 million loan from the Maui region and more than $2 million in systemwide obligations owed to the corporate office.It would also help reduce accounts payable to 30 days from more than 110 days.
Alice Hall, acting president and chief executive officer of the agency, has testified that the Kauai region’s financial problems affect the entire system.
"If one region does not pay its share, the burden falls on the others to make up for it. Unfortunately, none of the hospitals have the extra cash to make up for Kauai’s shortfall,"she said in written testimony. "If the corporate office cannot pay the bills, the systemwide contracts for services and supplies will become further behind, thereby affecting the hospitals’ ability to treat patients."
Hawaii Health Systems Corp. had requested a $9 million loan from the state Department of Budget and Finance before seeking extra funds in the special session.
