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Ige to sign hospital privatization bill Wednesday

Gov. David Ige will sign a historic bill on Wednesday to allow Maui Memorial Medical Center and the Kula and Lanai Community hospitals to pursue a public-private partnership, according to an announcement from the Governor’s Office.

The signing ceremony is scheduled to begin at 11 a.m. at Maui Memorial Medical Center.

Legislators passed an amended version of House Bill 1075 earlier this year, adding in provisions that require the Hawaii Health Systems Corp. Maui Region to resolicit proposals from any interested party. Until recently, Hawaii Pacific Health had been the only private health care provider to show interest in taking over Maui Memorial Medical Center, the largest public hospital in the state, but Kaiser Permanente told state lawmakers last month that it intended to submit a “letter of interest” to take part in the selection process.

The amended bill also allows the governor to “direct negotiations” for the impending partnership with the assistance of HHSC and its Maui region.

Finding a suitable partner sooner rather than later is critical, as HHSC officials reported that the state hospital system for Neighbor Island and rural Oahu facilities was facing a $50 million shortfall for next fiscal year, beginning July 1, and may cut as many as 300 jobs.

Administrators of Maui region hospitals hosted a community meeting in April to consider potential cuts in services and personnel to make up for a projected $28 million shortfall for the next fiscal year.

“At the end of the day, we continue to hope for urgency to avoid any disruption of service for the residents and visitors of Maui County and make a selection that is in the best interests of the residents of the County of Maui and the state,” HHSC Maui Region Chief Executive Officer Wesley Lo said last month.

Lo said that he had hoped to find a partner and complete negotiations in six months to a year, but acknowledged the process could take longer.

Hawaii Pacific Health and Kaiser appear to be the only two local health care providers so far that have expressed interest in a potential partnership. HPH operates Kapi’olani Medical Center for Women & Children, Pali Momi Medical Center and Straub Clinic & Hospital on Oahu and Wilcox Memorial Hospital on Kauai. The not-for-profit health care system has been working on a partnership arrangement with Maui Memorial administrators since 2012.

Kaiser has more than 52,000 members on Maui, with locations in Kihei, Lahaina, Maui Lani, Maui Lani Elua and Wailuku, and behavioral health services on Wells Street in Wailuku.

Ige has until June 29 to release his list of intended vetoes, according to his press secretary. On Monday, Ige signed four energy-related bills during a signing at the state Capitol, bringing the total number of bills he’s signed into law to 88. About 163 bills, including the Maui hospital privatization bill, are still on his desk.

* Eileen Chao can be reached at echao@mauinews.com.

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