Hawaii Medical Center says it's close to finding buyer

Maria Kostylo
Maria Kostylo

By Tim Sakahara - bio | email

HONOLULU (HawaiiNewsNow) - The Hawaii Medical Centers in Ewa and Liliha remain open and treating patients, however its status remains critical.  The hospital administration was back in bankruptcy court and has until midnight November 10 to have a letter of intent signed by a buyer.  It's not the drop dead date but the lender wants to see more progress.

"We are very hopeful we will have a buyer soon," said Maria Kostylo, Hawaii Medical Center Interim CEO.

Kostylo says there are several potential buyers and at least one has put down a $250,000 in earnest money.  That's critical because it shows the financier, MidCap Financial, they're close to a deal and thus the hospitals remain funded and operational.

So how long can the hospital stay open without a buyer?

"The hospitals will stay open, I think the funding will continue because there is enough interest to keep the operations going," said Kostylo.

HMC is listening to all offers including the possibility of breaking up the hospitals and selling them separately.  HMC does not own the land the hospitals are on.  St. Francis Healthcare System does and it still gets a say in the final offer.

At this point there isn't one particular detail holding up a sale.

"I don't think things are far enough along to get to those kinds of discussions," said Kostylo.  "If the event occurs that we cannot find a buyer then we would have to initiate a wind down."

If the hospitals do have to close, Kostylo says there is enough money to have an orderly wind down.  There are about 80 patients at the East facility in Liliha and 70 at the West hospital in Ewa.

All parties will update the bankruptcy court again Monday.  Judge Robert Faris said he's keeping his fingers crossed a deal gets done.

Copyright 2011 Hawaii News Now. All rights reserved.