The Maui Memorial Hospital in Wailuku has entered preliminary negotiations with Kaiser Permanente Hawaii and Hawaii Pacific Health, as a growing budget deficit makes it difficult for them to stay afloat. Current estimates has the hospital facing an $11 million deficit in 2015, a $40.1 million deficit in 2016, and a $46.5 million deficit in 2017. Wesley Lo, CEO of Maui Memorial, stated, "It gets way worse in 2016 and 2017. All of a sudden as we look to 2016 and 2017, revenues aren't projected to increase at all, then you have continued inflation and then also it appears there's going to be additional raises (for workers), The amount of losses over the next three to five years, I don't even know what you would do to stem those losses. At (a certain) point in time, what do you cut? (If) you start cutting services, you start cutting revenue."
Currently, Maui Memorial Hospital is a quasi-public hospital, and therefore if an agreement is reached, the legislature would have approve the deal. Lo stated that he hopes to have proposals from both Kaiser and Hawaii Pacific Health in the next few months.
Source: Honolulu Star Advertiser, 10-14-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
