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The Honolulu Advertiser

Posted at 12:12 p.m., Friday, March 25, 2005

Filipino doctors' groups consider bid for St. Francis

By Deborah Adamson
Advertiser Staff Writer

Two Filipino doctors' groups are organizing an effort to purchase O'ahu's struggling St. Francis hospitals, which operate in the heart of their communities.

Physicians from the Philippine Medical Association of Hawaii and Hawaii Filipino Healthcare have joined with a Kansas healthcare firm to consider putting in a bid for St. Francis Liliha and St. Francis Medical Center-West in 'Ewa.

"We don't want to lose St. Francis," said Dr. Danelo Canete, who is spearheading the effort. "We think it can be managed well if doctors take over."

The doctors and their partner will be appraising the business of the two hospitals over the next few weeks to see if an investment is viable. If so, they will make a bid, Canete said.

The partner and doctors will split hospital ownership by 51 percent to 49 percent, respectively, said Maria Ilar, president of the 120-member Philippine Medical Association of Hawaii.

The hospitals' owner, St. Francis Healthcare System, has been exploring the sale of its two acute-care hospitals because of rising costs. The Catholic healthcare provider, whose roots go back to the arrival of Franciscan sisters in 1883, also is considering joint ventures and other business relationships to share the hospitals' financial burden.

Canete said Filipino doctors met with Sister Beatrice Tom, chief executive officer of the St. Francis Healthcare System of Hawaii earlier this week to talk about a possible bid.

Other potential buyers include Queens' Health Systems, Kaiser Permanente and Hawaii Pacific Health -- the operator of Straub Clinic and Hospital, Wilcox Health and Kapiolani Health.

In spite of the competition, the Filipino doctors believe they have a shot at winning the bid.

"We have a better chance because we will preserve the Catholic mission," said Dr. Ed Alquero, president of 64-member Hawaii Filipino Healthcare.

The doctors said they would continue the hospitals' policies of helping the poor, disallowing abortions and banning assisted suicides.