MAUI (HawaiiNewsNow) - Kaiser Permanente has been selected to manage and operate Maui Memorial Medical Center and other Maui region facilities, the Hawaii Health Systems Corporation's Maui Regional System Board announced Wednesday.
As part of Act 103, signed by Gov. David Ige in June, the facilities -- including the Maui Memorial Medical Center, Kula Hospital and Lanai Community Hospital -- will be transferred over to a new entity as a way to mitigate future budget deficits, which were expected to grow exponentially and potentially threaten services and jobs in Maui County. Once negotiations are complete and a definitive agreement happens, Kaiser Permanente will become the new operator.
"We have a responsibility to meet the healthcare needs of our community, and we believe this transition provides us the greatest path forward to continue doing this," said Wesley Lo, CEO of HHSC Maui Region. "Act 103 was the culmination of years of hard work and dedication from our staff, physicians, past and current board members, and local leaders - our community will be better served thanks to their vision and determination."
Maui Memorial Medical Center lost $43 million in the red last year and it's expected to need another $46 million from taxpayers to cover its losses this year.
State lawmakers previously proposed allowing Hawaii Pacific Health to take over.