Kaiser’s takeover of Maui hospitals delayed to July
STAR-ADVERTISER
Maui Memorial Medical Center in Wailuku in July 2015. Kaiser Permanente now says it will wait until July 1 to take over three Maui County medical facilities, a decision that means further delays for the largest privatization effort in state history.
Kaiser Permanente now says it will wait until July 1 to take over three Maui County medical facilities, a decision that means further delays for the largest privatization effort in state history.
In a letter to Gov. David Ige dated Sunday, Maui Health System Hospital Administrator Ray Hahn formally notified Ige that the Kaiser takeover that had been planned for Nov. 6 “is no longer possible.” Maui Health is a subsidiary of Kaiser.
Hahn said it was essential that the state finalize agreements by last week with the United Public Workers and the Hawaii Government Employees Association to amend the public workers union contracts to finalize the transfer of the hospitals by Nov. 6. That didn’t happen, and Hahn said the next “clearly identifiable” date for the transfer to be completed is July 1.
“Due to the practical and logistical difficulties of mobilizing necessary trainers, vendors, and other resources during the winter holiday season, as well as the length of time and complexity involved in restarting and completing all necessary transition readiness work and fulfilling all closing conditions in order to achieve a smooth transfer, and the ongoing uncertainty associated with the state’s inability to resolve its issues with the unions, we are confirming the transfer date for closing and transfer of operations is July 1, 2017,” Hahn wrote.
Lawmakers last year authorized privatization of Maui Memorial Medical Center, Kula Hospital & Clinic and Lanai Community Hospital, and the state reached an agreement in January to have Kaiser operate all three. Gov. David Ige has predicted the effort will save the state $260 million in hospital subsidies over the next decade.
The privatization effort has been fought by the state’s public worker unions, which represent about 1,400 employees at the Maui hospitals. Most of the hospital staffers are expected to continue working at the hospitals for Kaiser, but they will no longer be state workers.
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The United Public Workers sued the governor last year to stop the privatization of the facilities, arguing the state’s plan would harm workers who have contracts in place that run through June 30, 2017.
The state settled that lawsuit this month, but the Ige administration has been unable to finalize supplemental agreements with the public worker unions to modify the union contracts that run through June 30, according to Hahn.
“We believe that the ongoing uncertainty associated with repeatedly setting and canceling potential closing dates (for the hospital transfer), while not intended, is a disservice to the people of Maui and Lanai, as well as to all the clinical and administrative staff who have dedicated so much time and effort to this project on behalf of the state, MHS, the Hospitals, and the communities of Maui and Lanai,” Hahn wrote. “With a new date of July 1, 2017, we will all avoid the perpetual raising and dashing of expectations as interim closing dates are repeatedly set and cancelled.”
11 responses to “Kaiser’s takeover of Maui hospitals delayed to July”
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Makes perfect sense, which is why I guess the parties didn’t choose that date from the start. Even if there were correct legal arguments that the effective closing of the hospitals voiding the collective bargaining agreement, there was no way the unions were going down without a fight. CBA ends June 30, Kaiser takes over July 1. Voila. Simple. The way it should be.
If the turnover won’t happen until the union contracts expire anyway, why does the State need to finalize any supplemental agreements? There won’t be any contract being impaired, and the workers already have reduction-in-force rights in the contract. The Governor’s “settlement” and the Legislature’s financial windfall that jeopardizes the entire retirement system has been a farce. A very expensive farce that the taxpayers will pay for.
Yea but hey there is a Billion Dollar surplus in the budget.
agree. I feel sorry for the people of Maui. This delay could put lives at risk.
Thee is no reason to settle now. The unions overplayed their hand and, other than the generosity of vote-hungry politicians, should get nothing.
Logic has nothing to do with this. The supplemental agreement is a payout by our legislature to the public unions in return for their continued support. What really bothers me is that most/all of those legislators who voted for this will probably get re-elected.
Correct. Two other aspects of this are (1) our legislature’s leadership is currently dominated by the outer islands, particularly Maui, and (2) 80 percent of state funding comes from Oahu taxpayers, including the propsed payouts to Maui workers. Oahu is being treated as the neighbor islands cash cow while Oahu’s growing problems are neglected.
This is the date that they should have planned on
MMMC needs to right size itself and its services for a population of this size and not try to copy queens
They will fail at this every time
It’s the administration of MMMC and HHSC that have made this complete mess overspending our money
Bet you Kaiser likes this cutting of services, to the level they would have had to cut them to after the purchase
This is bad for the workers, now there does not have to be any agreements for guaranteed jobs. Now Kaiser can solicit new employees and plan for them to be here in 10 months, Union over played hand and kills jobs for its card holders.
So, good for the taxpayers?
I’m surprised Kaiser didn’t walk on this a long time ago. Having your chain jerked by the Union and State thinking you’ll stick around. I don’t think they will abandon the workers but they now have 9-10 months to re-group and will there be any changes in their offer? Union and State leadership are a joke hanging the people of Maui out to dry.