Hope persists for Maui hospital

Backers of Malulani might appeal state denial of its permit

WAILUKU » Supporters of a second hospital on Maui say they are likely to ask a state agency to reconsider its denial of a permit to develop the Malulani Health and Medical Center.

"We still need expanded health care facilities in Maui County. That doesn't go away," said Dr. Ronald Kwon, president of Malulani Health Systems.

"I don't see this denial as the nail on the coffin. I think it sort of begins the process of doing what we have to do," he said.

Led by Kwon, a consortium of the medical community joined with Triad Health Systems to propose building a 150-bed full-service acute care community hospital.

The plans call for an emergency room with six bays near a heliport, a facility that is missing at Maui Memorial.

Before building a hospital, a developer requires a certificate of need from the state.

Gov. Linda Lingle said she was worried the decision would make it difficult to persuade private parties to develop new state-of-the-art medical facilities in Hawaii.

Kwon said his group had the capital partner ready to invest between $200 million to $300 million on a new hospital to solve problems that the state and Maui Memorial Medical Center cannot fix.

"It seems a no-brainer," he said.

Kwon said if the reconsideration is turned down, he thinks the next step is going to the courts.

"If we have to, we will," he said.

The director of the State Health Planning and Development Agency issued a decision Monday disapproving Malulani's proposal to build the medical center in Kihei.

Some of the reasons for the denial reflected arguments made by the state-subsidized Maui Memorial Medical Center, including an estimated $54.9 million loss. Maui Memorial officials said they would lose patients plus an annual federal subsidy provided to the hospital as the sole provider of acute care on the Valley Isle.

The agency also said a new facility would result in a staffing strain at both facilities.