9th CIRCUIT COURT TEMPORARILY STOPS TRANSITION ACTIVITIES RELATED TO THREE MAUI COUNTY HOSPITALS

News Release from Hawaii Attorney General, May 17, 2016

HONOLULU – The 9th Circuit Court of Appeals today entered an order temporarily stopping activities related to the transition of Maui Memorial Medical Center, Kula Hospital & Clinic, and Lanai Community Hospital to a private operator. Today’s order lasts only until September 30, 2016, unless sooner terminated by the Court. The Court also ordered the parties to the lawsuit to file a joint status report on or before June 30, 2016.

In 2015, the state legislature passed a law ending the Hawaii Health Systems Corporation’s delivery of health care services at the three Maui facilities and transferring service delivery to a private operator. On January 14, 2016, the Hawaii Health Systems Corporation board and its regional board signed an agreement to transition to a new Kaiser entity, Maui Health Systems. United Public Workers, representing some of the Maui hospital employees, sued to stop the transition from taking place in the case of United Public Workers v. Ige. On February 19, 2016, United States District Court Judge Helen Gillmor ruled in favor of the State, and UPW appealed to the federal 9th Circuit Court. Today’s order does not rule on the appeal.

Attorney General Doug Chin said, “At oral arguments before the 9th Circuit in April, certain judges expressed concern about the impact of the transition on the affected UPW employees. The administration and legislature have put together multiple solutions to address these concerns. We will comply with the 9th Circuit’s order and report our progress to them.” Today’s order is attached.

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Kaiser Permanente Statement:

Although we are disappointed by today’s order by the 9th Circuit Court of Appeals, we are optimistic that this issue will be resolved quickly and we will be able to continue our work toward improving the health of the people of Maui and Lanai.

While we are seeking to understand the implications of the order, we will of course comply, and all transition activities that are on the premises of the three Maui hospital have been halted.

PDF: Court Order

Flashback: Legislative Report: Convert HHSC to non-profit, dump civil service (full text)

Feb, 2016: Full Text Court Order: UPW May Not Block Maui Hospital Privatization

April, 2016: 9th Circuit Judges Consider Blocking Maui Hospital Privatization