One of two Hawaii Health Systems Corp.’s long-term care facilities on Oahu is in jeopardy of closing if the public hospital network doesn’t receive additional state assistance by year’s end.
That’s the message HHSC officials relayed to lawmakers at a legislative hearing Tuesday at Leahi Hospital in Kaimuki, which along with Maluhia long-term care facility is facing a combined shortfall after state appropriations of $4.9 million for fiscal 2015, $9.5 million for 2016 and $13.3 million for 2017.
“If we continue to run these kinds of deficits, we’re looking at possible closure of one facility in fiscal year 2016,” said Edward Chu, HHSC’s chief financial officer. “It may happen as early as fiscal year 2015, but for sure if we don’t get funding it will happen in fiscal 2016.”
The 2016 fiscal year starts on July 1.
HHSC is facing a crippling $48 million deficit, mostly from collective bargaining increases negotiated by the state administration, and is urging lawmakers to fund it. The Oahu region is seeking about $4.3 million.