Hawaii Medical Center has named a new chief executive officer amid a desperate attempt to turn around unprofitable operations and prevent the closure of its two Oahu hospitals.

Honolulu cardiovascular surgeon Collin Dang yesterday became head of the financially troubled hospitals in Liliha and Ewa when Danelo Canete, a cardiologist, stepped down to return to private practice after two years of leading the state's only for-profit, physician-owned hospitals.

“;I am stepping down from my leadership duties to focus on my cardiac patients,”; Canete said. “;I have no doubt he will provide the vision and leadership needed to take Hawaii Medical Center forward.”;

Canete's departure comes just days after HMC announced it would slash another 150 workers, or 18 percent of its 830-member work force, and downsize to 50 beds at each of the facilities. The company, which filed for Chapter 11 bankruptcy protection a month ago, intended to issue 60-day layoff notices this week.

The significant changes across the board is part of a strategy to reorganize operations and become profitable to emerge from bankruptcy within 12 months, Salim Hasham, HMC's director of implementation, said earlier.

Canete was a key player in bringing together more than 130 local physicians to purchase the former St. Francis Medical Centers - now known as HMC East and HMC West - in partnership with CHA Hawaii, an affiliate of Cardiovascular Hospitals of America LLC. The group paid $67.9 million for the hospitals in January 2007 and almost immediately laid off nearly 150 employees out of a 1,250-member work force.

HMC said last month it would cut at least 80 employees, or nearly 10 percent of its work force, to bring staffing levels into balance with the number of patients at the hospitals, just two months after outsourcing back-office operations, which resulted in 89 layoffs.

As HMC's CEO, Canete has had to make difficult decisions to keep the hospitals running, while also maintaining his own practice. Under Canete's direction, the hospitals reduced the length of stay for patients, increased reimbursements from insurers and upgraded medical and information technology equipment at both facilities, according to Dang, who was most recently chief of cardiac surgery at HMC East.

“;Dr. Canete provided strong and steady leadership during a very challenging time for our institution,”; said Dang.