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The Honolulu Advertiser
Updated at 3:39 p.m., Sunday, July 13, 2008

Kona hospital to lay off 10 percent of its staff

Associated Press

Kona Community Hospital plans to lay off 54 people, or more than 10 percent of its work force, next week to trim deficit spending.

The Big Island hospital is part of Hawaii Health Systems Corp., the state subsidized network of about a dozen hospitals serving mostly the neighbor islands and rural areas.

The network's West Hawai'i region, which also includes Kohala Hospital in Kapa'au, is on track to post a $7.6 million deficit for the fiscal year that began this month.

Overall, the network is due to lose $62 million during the year, which would force Hawaii Health Systems to run out of money and shut down if costs are not trimmed.

West Hawai'i region officials have said that nurse and doctor jobs would not be eliminated and that the hospitals would make sure the cuts don't affect patient care.

Clifford Uwaine, executive assistant to the state director of United Public Workers, told a committee at the state Capitol on Friday that he and his boss would fly to Kona today to pinpoint which employees will be terminated.

"These are lives, these are people and families," Uwaine said at a joint briefing of the House Finance and Senate Ways and Means committees. "Dietary helpers, groundskeepers, a housekeeper who makes sure the linens are clean. They may not be direct patient care, but nonetheless they affect patient services."

Public and private hospitals alike are suffering as private insurers and government programs like Medicare fail to pay them the full cost of the care they provide patients.

They are also burdened by rising costs, bad debt, and the growing cost of treating those without health insurance and the means to pay for their care.

Democratic lawmakers have called on Gov. Linda Lingle to help Hawaii Health Systems by shifting surplus funds to the network from the departments of health and human services.

But Lingle has said her options are limited because the 1996 law that created Hawaii Health Systems specifically barred the governor from interfering in the organization's policy and budget.

House Finance Chair Rep. Marcus Oshiro, D-39th (Wahiawa), said he plans to ask the attorney general for an opinion on the law.

Hawaii Health Systems takes in about $450 million in annual revenues from Medicare, insurance companies and patients, but it is also supported by about $58 million from the state's general fund.