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Tuesday, August 28, 2012
Queens-HMC Agreement Outlines Plans for Ewa Beach Hospital
By Selected News Articles @ 4:22 PM :: 4926 Views :: Maui County, Education K-12

Queen's Health to acquire, reopen Hawaii facility

by Ashok Selvam,

The Queen's Health Systems, Honolulu, has agreed to acquire Hawaii Medical Center West from St. Francis Healthcare System of Hawaii and to reopen the hospital by fall 2013, according to a news release (PDF).

Officials hope to close the deal by October. A certificate of need approved this month by state officials showed Queen's Health intends to spend $73.2 million to acquire and renovate the hospital in Ewa Beach, Hawaii. The hospital shuttered in December 2011 after parent company, Hawaii Medical Center, filed for Chapter 11 bankruptcy in August 2008 and in June 2011.

Queen’s Health officials say they’ll spend $52 million on improvements, including expansion and modernization of emergency, imaging and surgical services. West Oahu, where the hospital is located is one of the fastest-growing areas on the island, and is expected double in population by 2030 to about 600,000, according to the certificate of need.

St. Francis, based in Honolulu, reacquired 102-bed Hawaii Medical Center West and 240-bed Hawaii Medical Center East in Honolulu in April when a bankruptcy judge ordered the return of assets. St. Francis had sold the hospitals in January 2007. They’ll continue to operate nonhospital services, including hospice care and nursing homes.

The certificate also included financial projections. In year one of operation, officials estimate the hospital would generate $65.8 million in net patient-services revenue with total expenses of $74.9 million for a net loss of $9.1 million. In year three, they expect net patient-services revenue to rise to $78.7 million, with total expenses of $83.1 million. That cuts the loss by more than half to $4.4 million. Officials said they expect to be in the black by year five.

read …

FULL TEXT: Queens HMC West certificate of need Approval

FULL TEXT: Queens News Release Announcing HMC Deal

SA: Queen's finalizes deal to buy HMC-West and reopen in 2013


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