Kaiser looks to boost economy

By Frank Cho
Advertiser Staff Writer

Citing increased membership, Kaiser Permanente Hawaii said yesterday it will spend $200 million on construction for its facilities over the next five years in a move expected to provide a much-needed boost to the state's economy.

Kaiser, the state's biggest health maintenance organization, yesterday said its membership has grown by 40,000 over the past decade to more than 225,000 members statewide. After completing a 10-year strategic review, Kaiser said it decided that the investment would be in the best interest of its members and the state.

"We are confident that our multimillion-dollar investment in construction projects will help the state's economy," said Bruce Behnke, Kaiser Permanente Hawaii's president and regional manager.

Kaiser Permanente's planned construction program marks a 35 percent increase over the $148 million the HMO spent over the last five years on facilities and equipment.

The biggest of several projects planned will be the renovation and expansion of Kaiser's Moanalua Medical Center at a cost of $115 million. Kaiser said it expects to complete that project in 2006.

"Our plans are preliminary right now, but we will begin design work in early 2002 and, if we receive SHPDA (state of Hawaii Planning & Development Agency) approval of each project planned, we can begin construction in 2003," Behnke said.

Kaiser also plans to build a clinic in Waipi'o on O'ahu on 5.8 acres recently purchased near Costco in the Waipio Gentry Business Park. That project is expected to cost around $32 million and take two years to complete.

Other Kaiser plans include:

• A $14 million expansion of its Koolau Clinic in Kane'ohe, expected to be completed in 2004.

• $20 million to build a second clinic in Honolulu near its Pensacola Street facility, expected to be completed by 2006.

• On Maui, Kaiser is planning to spend $13 million on a new clinic in Kahului scheduled for completion in 2004. It also plans to expand its Kihei and Lahaina clinics at a cost of $2 million.

• On the Big Island, Kaiser plans to replace its Kona Clinic with a larger facility that will cost around $5 million and should be completed by 2005.

"These projects are part of an overall effort to place 'hub' clinics in every major sector of O'ahu, Maui, and the Big Island," said Norman Quon, Kaiser Permanente's director of facility services.

These clinics will offer a wider range of services and improve access for members, Quon said.

Each year, Kaiser Permanente Hawaii, which employs 325 physicians and 4,000 workers, sets aside a portion of its operating profits into a fund to be invested along with other Kaiser regions around the country.

Behnke said Kaiser intends to use that money to finance the construction projects.

"Fortunately, we have always operated in the black. We are fiscally a very conservative organization," Behnke said. "We are not going to borrow any money to pay for this."

Reach Frank Cho at 525-8088, or at fcho@honoluluadvertiser.com.