LIHU’E- Kaua’i’s 57,000 permanent residents are served by three hospitals, two state-supported, the other a private, nonprofit facility. The state-supported hospitals, Kauai Veterans Memorial Hospital in Waimea, and Samuel Mahelona Memorial Hospital in Kapa’a, are not money-makers. This year, KVMH
LIHU’E- Kaua’i’s 57,000 permanent residents are served by three hospitals, two state-supported, the other a private, nonprofit facility.
The state-supported hospitals, Kauai Veterans Memorial Hospital in Waimea, and Samuel Mahelona Memorial Hospital in Kapa’a, are not money-makers. This year, KVMH lost $4 million and Mahelona, $2 million.
The private facility, Wilcox Memorial Hospital, by far the largest health-care provider on the island, has typically maintained a profitable operating income, but that income dipped to about $2.3 million on June 30, the end of the current fiscal year. And hospital officials are projecting a $1.5 million loss next year.
Wilcox estimates that it provides services to 72.3 percent of island residents. KVMH serves about 11.5 percent of the population and Queen’s Hospital on O’ahu serves a little over 9 percent of local residents.
Several years ago, the state negotiated a contract with Hawaii Health Systems Corporation to run all the state hospitals. HHSC was charged with stanching the financial hemorrhaging of Hawai’i’s state hospitals.
Under the direction of the corporation, both Mahelona and KVMH have added services. But they are still losing money.
In 1997, Wilcox Health System and Hawaii Health Systems Corporation, released a report on Kaua’i’s health care system needs.
The report laid out a plan for a collaborative system that would serve the needs of the population without draining the budgets of the providers. Wilcox President and CEO Dr. David Patton is pushing for further talks on collaboration and has approached Gov.
Ben Cayetano for support.
Patton said he believes it is possible for all three Kaua’i hospitals to continue operations. “But,” he said, “we may have to change. We may have to look at solutions that we haven’t tried before.” HHSC is expected to be back before the State Legislature again next year for money to help cover its losses. This year, the quasi-public corporation borrowed $7 million from the state treasury to pay negotiated raises to its unionized employees.
The corporation is expected to ask the Legislature for permission to close some money-losing, long-term care facilities and may seek to discontinue unprofitable services within facilities.
Though losses from Kaua’i’s two HHSC-run hospitals comprise nearly half of the estimated $13 million in operating loss reported by HHSC this year, both Kaua’i Sen. Jonathan Chun and HHSC President and Chief Executive Thomas Driskall Jr. are optimistic that neither facility will close.
