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The Honolulu Advertiser
Updated at 3:55 p.m., Tuesday, April 29, 2008

Hawaii Medical Center sets layoffs in outsourcing work

Advertiser Staff

Hawaii Medical Center will lay off 89 workers in outsourcing some of its business and information-management functions in late June as it tries to cut costs and stem financial losses.

The hospital company that operates the former St. Francis Medical Center hospitals said it is contracting with Perot Systems of Nashville, Tenn., to take over its business office, call center, health information management and admissions departments.

"We have found that Perot Systems can provide these services better and more efficiently than we can ourselves," said Salim Hasham, HMC director of implementation, in a press statement.

HMC said it has given 89 employees 60-day notices but that they may be rehired by Perot systems. Hasham said it was HMC's understanding that Perot will give the employees "strong consideration" for new jobs at pay rates that will be comparable to those being eliminated.

HMC said the change will help it focus on providing medical care and that Perot Systems is promising to provide HMC with significant new sources of revenue and an improved cash position.

The for-profit HMC operates Hawaii Medical Center East in Liliha and Hawaii Medical Center West in 'Ewa Beach.