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A resolution to support the development of the West Maui Hospital and Medical Center seems stalled in the Maui County Council after testimony from Mayor Richard Bissen's administration.
County Managing Director Josiah Nishita said Bissen supports a West Maui hospital, but Nishita expressed concerns about the county serving as guarantor and approving a special-purpose revenue bond of $20 million for the medical facilities because of "overarching questions" including a prior assertion that the investment poses a low risk.
"I'm not aware of our bond counsel seeing this as a low risk investment," Nishita said at a meeting on Oct. 30. "In fact, I believe it's the opposite."
Council members deferred voting on the resolution. They are tentatively scheduled on Friday to refer the issue to the county's Disaster, Resilience, International Affairs and Planning Committee.
Committee chair Tamara Paltin plans to hold further talks with the developer, the Newport Hospital Corp., as well as Nishita and state and county finance officials.
A number of West Maui groups along with council members support the development of a medical center that could treat trauma and stroke victims in a timely manner and avoid the 45 to 65 minute drive to Maui Memorial Medical Center in Wailuku.
Council chair Alice Lee asked Nishita to tell her what he proposed to help develop the hospital.
"Tell us how this can be done," she said. "How do we do it? There's got to be a way."
West Maui Hospital Foundation board president Jo Anne Johnson Winer said she's been talking with the Bissen administration for a year and a half, and this is the first time she has heard the administration has reservations because of the risk.
Johnson said a prior finance director and bond counsel had no problems with backing the special-purpose revenue bond.
Board consultant Charles Slaton said hospital representatives never met with Nishita about his concerns about risk.
"We were really surprised," Slaton said.
Nishita said he's willing to work with West Maui Hospital officials to move the issue forward and to return to the committee for further talks.
In 2023, the state legislature passed House Bill 1255, which authorized a special-purpose revenue bond to be sold by West Maui Hospital and Medical Center to finance its development.
The bill allows investors to receive tax-free earnings from the state from the special-purpose revenue bonds.
Hospital officials say the cost of developing the hospital has increased significantly, and estimate the price at about $120 million to $140 million.
Under the Newport Hospital Corporation, West Maui Hospital officials received a state health certificate of need approval in 2009 that projected a $45 million project, providing emergency room services blended with operating room services, radiology, a clinical laboratory and pharmacy, along with medical and surgical beds.