Kaiser takes reins of 3 Maui hospitals

Kaiser Permanente Hawaii was scheduled to take control of three Maui County hospitals today in the largest privatization in state history.

Hawaii’s largest health maintenance organization — both an insurer and medical provider — earlier said it is investing more than $50 million to expand services and update technology to improve patient care following today’s transition.

The HMO pledged to inject more resources into Maui Memorial Medical Center, Kula Hospital &Clinic and Lanai Community Hospital, the only acute-care facilities for about 200,000 residents and visitors in Maui County, and to reduce state subsides over time.

The new Kaiser entity, Maui Health System, received from the state $33.4 million in general funds for this year’s operations, in addition to a one-time lump sum of $30.6 million for severance benefits for hospital workers who will no longer be state employees. The state also is funding another $6 million to upgrade and repair the facilities and as much as $10 million in working capital.

Read more: http://www.staradvertiser.com/2017/07/01/business/kaiser-takes-reins-of-3-maui-hospitals/?HSA=c71d4cf5da75d5a0fc932ca713c40fa3bf332ae6