STATE BEGINS NEGOTIATIONS WITH KAISER PERMANENTE ON MANAGEMENT OF MAUI REGION HEALTH CARE FACILITIES

News Release from Office of the Governor, October 22, 2015

HONOLULU – The state begins negotiations with Kaiser Permanente Hawai‘i today, October 22, 2015, for the provision of health care services at Hawai‘i Health Systems Corporation’s (HHSC) Maui Region facilities. They include Maui Memorial Medical Center (MMMC), Kula Hospital and Lāna‘i Community Hospital.

State Comptroller and Director of the Department of Accounting and General Services (DAGS) Doug Murdock will serve as lead negotiator for the state. Others on the state’s negotiating team will include the governor’s Deputy Chief of Staff Laurel Johnston, Attorney General Doug Chin; Director of Finance Wesley Machida, Director of the Department of Human Resources Development James Nishimoto, Maui Region Board Chair Avery Chumbley, Maui Region Board CEO Wes Lo, HHSC CEO Linda Rosen and Maui Regional Healthcare System (MRHS) staff.

“Our negotiating team’s first priority is affordable, accessible health care for the Maui Region. The state will negotiate in good faith to secure the best possible outcome for our citizens and for employees of the facilities involved,” said Gov. David Ige.

The enactment of Act 103 authorized the Maui Region to transfer the operation of its facilities to a new entity in order to mitigate future budget deficits.

Once negotiations are complete and a definitive agreement is in place, Kaiser Permanente will become the new operator of the Maui Region facilities. The Maui Regional System Board will serve as the custodial caretaker of the properties and oversee performance of the terms and conditions of the agreement.

The state hopes to finalize an agreement by the end of the year.

###