Hawaii Gov. David Ige (D) signed a transfer agreement Jan. 14 allowing Oakland, Calif.-based Kaiser Permanente to manage the three state-owned hospitals in Maui County, according to a Honolulu Star-Advertiser report.
Here are six things to know about the deal.
1. Under the agreement, financially struggling Maui Memorial Medical Center, Kula Hospital and Lanai Community Hospital will remain community hospitals open to patients with all insurance plans, including rival Hawaii Medical Service Association, according to Kaiser.
2. Kaiser has agreed to infuse $30 million into the hospitals through a revolving credit line and roughly half of the $110 million in capital improvements projected through 2025, according to the report. According to the report, the HMO also will pay at least $20 million to update the hospitals information technology systems, including EMRs.
3. The agreement is expected to save the state an estimated $260 million over 10 years, Gov. Ige said, according to the report.
4. Financial terms of the deal were not disclosed.
5. The deal is expected to close June 30.
6. The agreement comes about four months after the board of Hawaii Health Systems Corp.'s Maui Region chose to enter negotiations with Oakland, Calif.-based Kaiser Permanente to manage the three state-owned hospitals.
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