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Kaiser Permanente subsidiary assumes operations at Hawaii hospitals

Honolulu-based Maui Health System, a subsidiary of Oakland, Calif.-based Kaiser Foundation Hospitals, assumed the management of community hospitals and associated clinics from the state of Hawaii July 1.

Under the agreement, Maui Health System will assume management of Wailuku-based Maui Memorial Medical Center, Kula (Hawaii) Hospital and Lanai City, Hawaii-based Lanai Community Hospital. However, the three facilities will continue to operate as community hospitals. Clinicians at the three hospitals will have access to Kaiser Permanente technology and providers' knowledge.

Hawaii Gov. David Ige, D, signed a law enabling the privatization of hospitals and clinics in the Maui region in 2015. Officials selected Oakland, Calif.-based Kaiser Permanente to operate and manage the facilities because of the health system's innovative care model and community investment, among other reasons.

The transfer agreement went into effect January 2016.

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