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Maui Memorial, Hawaii Pacific Health considering partnership

Maui Memorial Medical Center, a state-funded hospital, is involved in discussions with nonprofit system Hawaii Pacific Health in Honolulu about a possible partnership, according to KHON2.

Although Maui Memorial, which is part of Hawaii Health Systems Corp., has been in talks to possibly join Hawaii Pacific Health since January, the Hawaii Legislature would have to pass legislation allowing a public-private partnership for Maui Memorial before the arrangement is permitted.

In the meantime, as lawmakers continue to deliberate on the proposal, Maui Memorial and Hawaii Pacific Health are conducting their due diligence review and may have a final decision on whether to move forward with the partnership in six months, according to the report.

The talks between Hawaii Pacific Health and Maui Memorial come as Maui Memorial faces a looming budget crisis, according to the report.

Just last month, the board for Hawaii Health Systems Corp.'s Maui Region approved a $28 million cut to the region.

The cut, which is for fiscal year 2016 that begins in July, represents about 10 percent of the region's budget and will require Maui Memorial Medical Center.

 

More articles on hospital transactions and valuation issues:

Stanford Health Care, ValleyCare merger approved

Boston Medical Center, Tufts push to complete merger deal this year

University Hospitals, Robinson Health System sign letter of intent

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