Rural hospitals bill opposed
By Lynda Arakawa
Advertiser Capitol Bureau
A bill that would separate Maui hospitals from the Hawai'i Health Systems Corp., a quasi-public agency made up of 12 hospitals, appears to be in trouble.
The bill has passed the House. But yesterday, after hearing overwhelming testimony against the bill, Senate Health and Human Services Committee Chairman David Matsuura said he would instead propose dismantling the HHSC into county regions and tack on a $49 million appropriation for hospitals in the regions.
Such a proposal would be virtually impossible to pass this session when the Legislature is already struggling to balance the state budget.
The Senate committees on Health and Human Services and Labor heard testimony from hospital administrators and others, who said separating Maui Memorial Medical Center, Kula Hospital and Lana'i Community Hospital from the system would end up costing the state more money and eventually dismantle the system. Being part of the system gives hospitals more purchasing power and a wider network of expertise, they said.
Maui Memorial is the only profitable hospital in the system, making about $3 million last year, according to HHSC officials. Supporters, including Sen. Jan Buen, D-4th (W. Maui, Moloka'i, Lana'i), said it is unfair for one hospital to subsidize the rest of the system.
But Matsuura, D-2nd (S. Hilo, Puna), said the bill was too unpalatable for other lawmakers.
"There is no way Neighbor Island legislators can support a bill that will hurt Neighbor Islands," he said. "If we do it, it will be across the board. All the counties on their own, and with one heck of an appropriation."
The $49 million appropriation would go toward start-up and other costs involved in setting up different regions, he said.
When asked if the new proposal is automatically doomed, Matsuura said: "We'll see what the level of commitment is on this bill."
Rep. Bob Nakasone, D-9th (Kahului, Wailuku), introduced the original bill, which passed the House. The Senate Health and Human Services Committee and the Labor Committee will vote on the new proposal Friday.
The HHSC was formed in 1996 to reorganize the network of 12 hospitals that were previously under the Department of Health. The state-attached agency generates its own revenues, but also receives some state subsidies.
It manages the following hospitals: Hilo Medical Center, Hale Ho'ola Hamakua, Ka'u Hospital, Kona Community Hospital, Kohala Hospital on the Big Island; Maui Memorial Medical Center, Kula Hospital and Lana'i Community Hospital in the Maui region; Maluhia and Leahi Hospital on O'ahu; and Kaua'i Veterans Memorial Hospital and Samuel Mahelona Memorial Hospital on Kaua'i.
Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or 525-8070.
