Community hospitals requesting extra money
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By Gordon Y.K. Pang
Advertiser Capitol Bureau
Hawai'i's state hospital system continues to lose money, but at a slower pace than at the state's private healthcare facilities, according to a study done by Ernst and Young for the independent Healthcare Association of Hawai'i.
That point was made yesterday by Tom Driskill Jr., chief executive of Hawai'i Health Systems Corp., in asking the House Finance Committee for extra money for 12 community hospitals in the 2005 budget year that begins July 1.
In fiscal 1998, the state hospital system lost $18.5 million while other hospitals netted a $46.5 million profit, Driskill said. In fiscal 2002, the picture had changed dramatically, according to the study, with the state system losing $29.9 million while all the others lost $60.1 million, Driskill said.
"We've put an enormous amount of effort into ramping up our ability to collect, and we have been successful," he said after the meeting.
HHSC is seeking $31.2 million in general funds as part of Gov. Linda Lingle's supplemental budget request for the 2004-05 fiscal year.
The hospital system also wants permission to raise its special fund ceiling — in essence, approval to spend money it generates — by $42.2 million, to $302.8 million. HHSC said collections went from $203 million in 1999 to $277 million in 2003 and are expected to reach $298 million in 2004.
But while collections have risen, so have expenses, Driskill said. Expenditures were $45 million more than revenues in 2003, and 12 percent higher than 2002. Driskill said much of the increases can be attributed to higher salaries and costlier benefits for its employees.
HHSC operates most of the biggest hospitals on the Neighbor Islands and is a significant provider of long-term care on O'ahu.
Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or 525-8070.
