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Island Urgent Care is closing its Kahala medical clinic Aug. 13 after more than 12 years in business.
The facility is shutting down following the redevelopment of Kahala Square which has brought about a 300 percent rent hike as well as a requirement to pay 8 percent of sales, “forcing out smaller businesses,” according to Dr. Robert Ruggeri, Island Urgent Care’s owner and president.
“Medical Practices operate on a small margin, with a much higher overhead and require more employees than other retail sales businesses,” he said in a news release. “We could not survive if we had to pay a retail percent of sales in our lease. I expected an increase in rent after redevelopment, but never expected to pay three times what we pay now.”
The clinic opened in 2006 as Kahala Urgent Care, the first of five clinics Ruggeri operates to treat sudden illnesses, after-hour injuries and conditions not severe enough to warrant costly emergency room visits.
Island Urgent Care, which saw more than 18,000 patient visits in 2017, has four other locations — in Hawaii Kai, Kapahulu, Kakaako and Pearl Kai — and plans to open a Kapolei location late this year.