Posted on: Wednesday, June 1, 2005

Bids in for St. Francis centers

By Deborah Adamson
Advertiser Staff Writer

St. Francis Healthcare System of Hawaii is expected to choose the winning bidder this week to take over operations of its two hospitals on O'ahu.

Eugene Tiwanak, chief foundation officer for St. Francis, said there are "three or four" suitors for St. Francis Liliha and St. Francis Medical Center-West in 'Ewa.

Known suitors include the Queen's Health Systems and members of the Philippine Medical Association of Hawaii and Hawaii Filipino Healthcare, in partnership with Cardiovascular Hospitals of America in Wichita, Kan.

Kaiser Permanente Hawaii and Hawaii Pacific Health —operator of Straub Clinic and Hospital, Wilcox Health and Kapiolani Health — have dropped out of the bidding.

"After a period of exhaustive evaluation and negotiations for a possible purchase of St. Francis Medical Centers, we have come to understand that the goals, objectives and expectations of the Sisters of St. Francis and Hawaii Pacific Health are very different," the hospital said in a statement.

Tiwanak said St. Francis still hasn't decided whether the two hospitals will be purchased or be partner to a joint-venture arrangement. The final structure of the deal will depend on the winning bidder, he said.

The hospitals' owner, St. Francis Healthcare System, has been exploring the sale of its two acute-care hospitals because of rising costs.

"That's the primary reason for going through all this — to correct our financial situation," Tiwanak said.

Papal approval is needed in addition to regulatory approvals.

Reach Deborah Adamson at dadamson@honoluluadvertiser.com or 525-8088.