The Hawaii Health Systems Corps, which manages a total of 12 public hospitals in the state, has recently learned that they must contribute a total of $69.2 million to their retired workers' health benefits during the 2016 and 2017 fiscal years. This would bring their projected budget deficit to $197.4 million after state appropriations during those two fiscal years. Edward Chu, the chief financial officer for HHSC, stated, "To understand the gravity of this, you could probably close half of the HHSC hospitals and you would not erase the deficit. To focus on cutting our way to solvency will not only require cuts of unrealistic magnitude, but also hurt the people we are charged to serve, and position us for closure within the next few years. The system is broken and we urge creative, patient-centered solutions to develop a sustainable model of care for our rural and neighbor island communities. Health care is unavoidably expensive and our current levels of service to our communities will require a greater commitment of resources than in the past, whatever the source."
Currently the largest provider of health care in the state, the Hawaii Health Systems Corp has already announced that they will be eliminating services and reducing staff in an effort to combat the $31 million budget deficit expected for the 2015 fiscal year. However, now that they would be required to set aside money for retiree health benefits, it is unclear how they will stay financially solvent. Josh Green, the state Senate Health Committee Chairman, commented, "Once again this underscores the incredible challenges we have to make our community hospitals economically viable. This is additional evidence that we need to reform the system with a local partner that can simultaneously treat our workforce respectfully but get our system in the black. Otherwise we will see a loss of services and facilities."
Source: Honolulu Star Advertiser, 10-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
