Kaiser takes reins of 3 Maui hospitals

Kaiser Permanente Hawaii was scheduled to take control of three Maui County hospitals today in the largest privatization in state history.

Hawaii’s largest health maintenance organization — both an insurer and medical provider — earlier said it is investing more than $50 million to expand services and update technology to improve patient care following today’s transition.

The HMO pledged to inject more resources into Maui Memorial Medical Center, Kula Hospital &Clinic and Lanai Community Hospital, the only acute-care facilities for about 200,000 residents and visitors in Maui County, and to reduce state subsides over time.

The new Kaiser entity, Maui Health System, received from the state $33.4 million in general funds for this year’s operations, in addition to a one-time lump sum of $30.6 million for severance benefits for hospital workers who will no longer be state employees. The state also is funding another $6 million to upgrade and repair the facilities and as much as $10 million in working capital.

State officials expect the privatization of the facilities previously operated by the Hawaii Health Systems Corp. to save taxpayers $260 million in hospital subsidies over the next decade.

On Friday, Maui Health System announced a leadership team headed by hospital administrator Ray Hahn, who most recently served as interim hospital administrator for Kaiser’s Moanalua Medical Center on Oahu.

Other members of the leadership team are Brian Coogan, director of information technology; Paul Harper-O’Connor, RN, assistant administrator for quality, safety and performance; Traci Ing, chief administrative officer; Tamara Koller, director of compliance operations; Jacqueline “Jackie” Levy, RN, assistant administrator for clinical services; Joyce Tamori, chief financial officer; and Gary Kienbaum, RN, chief nursing executive.