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Maui Memorial Medical Center administrators said this week that they do not anticipate cutting staff positions other than those associated with the closure of the hospital’s adolescent behavioral health unit, Molokini II, at least for now.
The Hawaii Health Systems Corp. sent a letter to its employees and physicians Aug. 22, notifying them that it intended to implement “a systemwide reduction in force” beginning Tuesday. The letter did not specify how many employees or from which departments the cuts would be made.
“We value our employees tremendously, and we really tried to avoid this,” Alice Hall, the corporation’s acting president and chief executive officer, said in a statement Thursday. “Unfortunately, the current financial situation in some regions is not sustainable without significant changes, some of which have resulted in cost-saving measures that include a reduction in force.”
The HHSC operates Maui Memorial Medical Center, Kula Hospital, Lanai Community Hospital and 10 other facilities statewide. It projects a $48 million shortfall for the upcoming fiscal year, administrators said. The corporation faces reduced state subsidies and health insurance reimbursements, while operating costs continue to rise.
Maui Memorial had already initiated the process to close Molokini II last month because it has been unable to retain sufficient physician coverage for the unit, hospital officials said. They also noted that the closure would save the hospital more than $1 million annually. Officials expect new admissions of adolescent patients to be suspended in late October, followed by full closure in December.
The Maui News previously reported that the closure would affect only about five hospital employees, but HHSC Maui Region Chief Executive Officer Wesley Lo said in an email Wednesday that “it is too early to confirm exactly which positions and Maui facilities will be affected.”
The hospital is “working closely” with affected employees so “they are fully aware of all their options, which include applying for other positions within the Maui region of HHSC,” Lo said.
When asked if the systemwide reduction in force would affect either Kula or Lanai Community hospitals, Lo declined to comment.
“At this time, we can only speak to (reductions in force) initiated by the closure of Molokini II,” he said.
West and South Maui Sen. Roz Baker, who serves as vice chairwoman of the Senate Health Committee, has said she’s exploring “outside the box” solutions to allow adolescent patients to receive inpatient care on Maui. Possible options include partnering with psychiatry students at the John A. Burns School of Medicine at the University of Hawaii-Manoa, working with advanced practice registered nurses and incorporating telecommunication into health care.
All hospital employees whose positions have been identified for elimination will be notified officially by Tuesday, administrators said. The employee would then have 90 days to apply for a budgeted vacant position, or if none exists, “bump” less-senior employees as described in collective-bargaining agreements. Further reductions may occur later in the year, administrators said.
* Eileen Chao can be reached at echao@mauinews.com.