Posted on: Wednesday, August 15, 2001
Kaua'i panel backs hospital merger
By Jan TenBruggencate
Advertiser Kaua‘i Bureau
LIHU'E, Kaua'i — The proposed merger of Wilcox, Straub and Kapi'olani hospitals into Hawai'i Pacific Health got key support yesterday from the Kaua'i Sub-Area Council of the State Health Planning and Development Agency.
Wilcox Health Systems nurses and members of the Sub-Area Council expressed concern about the future of rural Wilcox Hospital, which is expected to continue losing money for at least five years under the plan, but council members said they saw few options.
"We have been told by the people who know that we (the Kaua'i community) can't support the level of services by ourselves," said council member Stan Yates.
The merger requires both state and federal approval. Certificates of need are being processed through the State Health Planning and Development Agency on two fronts: the O'ahu hospitals are proceeding as part of one application, and the Kaua'i health agency as another.
The O'ahu merger application already has received the approval of that island's Sub-Area Council. The applications must survive two more meetings before state health planning panels during the next two weeks before a final decision can be made by Marilyn Matsunaga, administrator of the agency.
Wilcox and Kapi'olani medical officials said they hope to be able to accomplish the merger by the end of October.
Hospitals everywhere are under severe financial strain, and mergers have become a common feature of efforts to save them, said Dr. Lee Evslin, chief executive officer of the Kaua'i Medical Clinic, which is part of Wilcox Health Systems.
He said he believes that expanded and improved services will be provided to Kaua'i residents from the merger. Patient referrals for specialist care not available on Kaua'i would go to the Honolulu facility best equipped to handle them, and would not be limited to the merged hospitals, he said.
For instance, many severe trauma cases are routinely sent to Queen's Medical Center for treatment, and would generally continue to go there, he said.
While the Contractors Association of Kaua'i, the American Heart Association, the American Cancer Society and other organizations spoke in favor of the merger, several nurses said they are worried about its implications.
Estimates presented by the hospital suggest it would lose $25 million over the next five years without the merger and $16 million with the merger.
"What revenues and what services will be shifted from Kaua'i to O'ahu?" asked critical-care nurse David Jackson.
With such losses, "why would a merged entity keep us?" asked nurse Jan Underhill.
Wilcox Hospital President David Patton said the proposed merger would retain local autonomy on many issues, and the local board would have to approve any elimination of services.
No elimination of services is proposed, Evslin said.
