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Kaiser re-emerges as bidder for Maui hospitals

Kristen Consillio
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GARY T. KUBOTA / 2004
Hawaii Pacific Health is in preliminary talks to form a partnership with or possibly purchase Maui Memorial Medical Center.

Kaiser Permanente Hawaii is throwing its hat back into the ring as a potential suitor to purchase or partner with Maui Memorial Medical Center.

In a letter to Sen. Gil Keith-Agaran, Mary Ann Barnes, Kaiser’s regional president, said the state’s largest health maintenance organization is preparing to submit a letter of interest to “participate in the process for the selection of a partner for Maui Memorial Medical Center.”

The letter obtained by the newspaper said: “We are taking this action because Kaiser Permanente Hawaii is committed to providing excellent care to the people of Maui and we believe that preserving a fiscally sound, high-quality community hospital network on the island is essential to the future of the Valley Isle. We remain firmly anchored to our roots on Maui, with more than 40 percent of the island’s residents now entrusting us with their care.”

She went on to say the HMO is committed to keeping the hospital open to the entire Maui community, not just Kaiser members, and would accept a variety of health insurance plans.

Lawmakers recently approved the privatization of Maui Memorial Medical Center and two other state-owned medical facilities, clearing the way for a possible takeover by the nonprofit Hawaii Pacific Health, which has been in talks with the public hospital system for months.

However, the legislation requires that other hospital operators also be allowed to compete for the opportunity to operate the facilities, which include Kula Hospital and Clinic and Lanai Community Hospital.

The Maui County hospitals meanwhile are moving forward on a plan to cut $28 million from their budgets starting July 1.

Kaiser has more than 52,000 members on Maui.

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