The Healthcare Association of Hawaii in Honolulu, which facilitated two meetings held this year, announced the decision Tuesday to defer further talks because of the sale of Triad Hospitals Inc., a financial backer of Kwon's proposal for a hospital in Kihei.

Triad, a hospital developer based in Planos, Texas, had agreed to put up approximately $41 million toward the development of the proposed Malulani Health and Medical Center in Kihei. Malulani's proposal to build a $212 million hospital with 150 beds was rejected in January.

Shortly after the rejection by the State Health Planning and Development Agency, Malulani, Triad and representatives from Maui Memorial Medical Center and its managing agency, the Hawaii Health Systems Corp., opened talks about a collaboration.

"The purpose of the meetings was to discuss possible collaborative measures for Maui's health care infrastructure," according to a statement issued by Rich Meiers, president and chief executive officer of the Healthcare Association of Hawaii. "The talks were very cordial, positive and productive."

A scheduled meeting, however, was postponed when Triad, a $5.15 billion publicly held corporation on the New York Stock Exchange, was sold.

"Sincere efforts will continue to be made to ensure that the best of care is provided to the citizens and visitors of Maui," Meiers' statement said.

When Malulani's request for a reconsideration of its rejected hospital proposal came up, State Health Planning and Development Agency Administrator Dr. David Sakamoto reiterated hopes that a public-private partnership could resolve Maui's need for more acute-care beds and a full-service hospital.

Kwon, who initiated the Malulani proposal four years ago, reported that previous talks on a collaboration with HHSC broke down in the spring of 2006 and didn't open up again until late January this year.