Maui Medical Center, Kula Hospital and Lanai Community Hospital are state-owned. Employees belong to state worker unions. These hospitals operate at heavy losses, funded by taxpayers. The state has been working to cut its losses but handing the operation over to Kaiser Permanente. The last obstacle was thought to be reaching agreement with those unions. A deadline was missed, but then the state and UPW agreed to contract terms through next July. Both state officials and the union assumed Kaiser would take over in November.
Well, it won't.
Kaiser has sent a long letter referring to transition readiness and retraining complexity but the bottom line is, state missed the deadline and now Kaiser won't be able to take over until summer of next year. Every day, every month, Kaiser isn't in charge, the system runs deep in the red. It also delays a very significant investment Kaiser plans to make in the hospital.
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