2 firms notify state of interest in buying its hospitals on Maui

Hawaii Pacific Health and Kaiser Foundation Hospitals were the only two companies to officially state their interest in acquiring three Maui County hospitals run by the state.

The deadline was July 2 to submit a “statement of interest” to acquire the right “to manage, operate and otherwise provide health care services” in one or more facilities, including Maui Memorial Medical Center, Kula Hospital and Clinic, and Lanai Community Hospital. The companies must submit proposals by Aug. 24.

“We are looking forward to the due diligence process and the receipt of proposals later this summer,” said Wesley Lo, chief executive officer of the Maui region of the state-owned Hawaii Health Systems Corp.

The Maui hospitals recently received legislative approval for privatization, clearing the way for a possible takeover by Kaiser — the state’s largest health maintenance organization — or Hawaii Pacific Health, which operates Kapiolani Medical Center for Women & Children, Pali Momi Medical Center, Straub Clinic & Hospital and Wilcox Memorial Hospital on Kauai.

The Wailuku hospital started discussions a year ago with Hawaii Pacific Health and Kaiser, which already has a strong presence on the island, but couldn’t move forward without legislation.

Officials of the Maui hospitals earlier this year said they were looking to cut $28 million in services and jobs starting July 1, but recently stated they would hold off on the reductions while moving forward with partnership talks.

This is not the first time Maui Memorial has sought privatization. In 2012 the hospital began talks with Phoenix-based Banner Health on a public-private partnership. The talks ended when the participants failed to win approval for the move from the state Legislature.