Thursday, May 28, 2020
Hawai'i Free Press

Current Articles | Archives

Friday, January 09, 2015
Last Chance? Maui Memorial Proposes Partnership with Straub, Pali Momi--HGEA Rejects
By Andrew Walden @ 11:36 PM :: 6335 Views :: Health Care, Labor

by Andrew Walden

Is this the last chance to save the insolvent Hawaii Health Services Corporation?

HHSC Maui Region CEO Wes Lo and Hawaii Pacific Health President and CEO Ray Vara teamed up at a news conference today to announce their proposal for a partnership agreement between the 100-year old parent company of Straub, Pali Momi, and Wilcox and the HHSC flagship Maui Memorial Hospital along with the smaller Kula and Lanai Hospitals.

Setting the stage as the executives walked in, the Hawaiian flag flew upside down outside HHSC's Leahi Hospital.  Perched on the ridge behind Diamond Head, Leahi--not part of the proposed partnership--boasts a majestic view of the Waikiki shoreline, but like many HHSC facilities, the building itself appears not to have been updated since Statehood

The HGEA-controlled Hawaii State Legislature has rejected legislation to partner the HHSC with private medical systems repeatedly since the 2009 "Stroudwater Report" called for conversion of HHSC from an HGEA job trust to a non-profit hospital system and liberation of the system's 5,000 employees from the civil service system.   Potential partner Banner Health Systems walked away from negotiations in 2013 after legislators used the excuse that Banner was a Mainland company to reject legislation authorizing its partnership proposal.  HGEA President Randy "F*** You" Perreira takes credit for the collapse of a 2014 effort to pass partnership legislation.  Within the last few days, Kaiser Health Systems announced that it would not be making a partnership proposal to HHSC.

Is this the last chance?  At the news conference, the question draws very different answers from HHSC and HPH:

HHSC's Wes Lo replies, "I don't know if this is the last chance or not.  I think we've put together a strong offer."

Ray Vara of HPH says, "We've been around for 100 years, I suspect we'll be around for 100 more and beyond."

The difference between the two answers underlines the fact that the HGEA and UPW are toast.  The only real question is how the hospitals will be transformed: Will HHSC be absorbed organizationally? -- or -- Will private hospital systems such as HPH, Queen's, and Kaiser step in to create new systems from scratch after the inevitable demise of HHSC?

Rejecting the partnership proposal, the HGEA's Perreira shows he is happy to continue living in a fool's paradise.  Perreira tells KITV: "The leadership of Maui Memorial, including their board of directors and a number of physicians, they looking to sell the hospital.  It's that simple.  And, frankly, their talk of a partnership is a misstatement.  Really, they are looking at an acquisition." 

The partnership proposal actually calls for the lease, not sale, of the Maui HHSC hospital buildings, but the facts don't matter.  As columnist Richard Borreca explained January 6:

"The HGEA knows change to the hospital contract will not help union members, and a damaged membership will not support the existing union leaders. So stall, talk and then block is the course of action for the HGEA."

The failure of then-Senator David Ige to deal with the HHSC crisis became an issue during the general election campaign.  Now-Governor Ige told the January 6 Star-Advertiser:

"... we have begun negotiations with (Hawaii Government Employees Association) Unit 9 (nurses) as well as with some of the other units where some of their membership is part of the hospital, so I do know that there needs to be some contract changes that are necessary to make the hospital system function better. I think that that’s kind of the starting point. I think we will be having discussions with the unions and talking about the kinds of things that are essential to allow the hospital system, operating as a government entity, to be successful...."

In a news release distributed at the conference, the potential partners outline their proposed structure and legislative action being requested: 

HHSC would enter into a 25-year lease operator partnership agreement with HPH.

  • The lease operator partnership agreement would assign HPH with the sole responsibility for the provision of healthcare services at all Maui Region sites.
  • HPH will lease all MMMC facilities at a nominal rate for the purpose of operating and managing healthcare services for the Maui Region.
  • State to retain ownership of the land and facilities with responsibility for repayment of long-term liabilities, including postemployment benefit (OPEB) liabilities.
  • MMMC would retain its current assets to allow pay down of current liabilities.
  • HPH to work with State on alternative benefit arrangements for employees nearing retirement.

What we are requesting

  • Legislation to authorize HHSC to enter into a public/private partnership agreement with HPH.
  • Legislative intent to enable MMMC employees to transition into market based healthcare wage and benefit structure.
  • Legislative intent to commit to a 10-year subsidy time horizon by the State.
  • Funding of the State's CIP commitments through the current year.
  • Initial appropriation to fund -jointly with HPH-implementation of necessary EHR/IT.
  • Legislation to assure governance and operational structure to enable HPH to effectively operate MMMC.


PDF: News Release and Fact Sheet




TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

808 State Update AM940


ACA Signups Hawaii



Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii



Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube


Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii


Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii