Lt. Gov. Shan Tsutsui was startled — as many may have been — to hear that Kaiser Permanente has been tapped to run the Maui public hospital system.

It’s the first chapter in the state’s push to privatize the financially challenged state-run hospitals and clinics on the neighbor islands.

But the really surprising part is that it’s been Hawaii Pacific Health at the negotiating table with the state for the longest time.

It will be interesting to watch how well Kaiser accommodates both its own members and those insured by HMSA.

The best gauge, however, will be provided by the Maui patients, who will decide whether this privatization plan succeeds.

Other islands are watching and waiting.

UH-West Oahu goes to market

The University of Hawaii-West Oahu plans to lease 168 acres of vacant land and is seeking a master developer for the project.

In keeping with Kapolei’s second city concept, the mixed-use development could include affordable housing, retail and commercial activities, recreational and sports facilities, schools, parks and child care facilities.

UH-West Oahu took on tens of millions of dollars in debt to get the campus built, so it needs the revenue that the leases will generate.

The university is so far holding on to 300 acres to expand the campus, which could make it similar in size to the UH-Manoa campus.

Let’s just hope UHWO tuition doesn’t grow to match UH-Manoa as well.