The second of two bills to save cash-strapped Kahuku Hospital from closing has been signed into law, preserving the operation of the only hospital on O'ahu's North Shore.

House Bill 843 paves the way for the Hawai'i Health Systems Corp., operator of 12 state community hospitals, to acquire the 25-bed facility. Earlier this year, Senate Bill 1260 provided $950,000 in emergency funds to keep the hospital open while arrangements were made to transfer it to the state.

"For the people of the North Shore the loss of Kahuku Hospital would have been devastating," said Rep. Michael Magaoay, who introduced the second bill.