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HMC weighs sale of Liliha hospital


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POSTED: Saturday, October 03, 2009

Hawaii Medical Center is looking into selling its Liliha hospital as one of its options in its amended plan to emerge from Chapter 11 bankruptcy.

The owners of the Liliha and Ewa facilities, both former St. Francis hospitals, said the operating history of HMC East (Liliha) and projections for that hospital's future performance “;demonstrate the prospects for reorganizing HMCE as a stand-alone entity are very slim.”;

In a federal Bankruptcy Court filing, the owners said they believe a sale or transfer of HMC East to a third party “;is a crucial step”; for the success of the reorganization plan if they are unable to locate a party to purchase or refinance the $46.3 million in loans owed to St. Francis Healthcare System.

HMC East has 240 licensed beds (188 acute and 52 skilled nursing facility beds), while HMC West has 102 acute licensed beds for a combined total of 342 beds for the two hospitals.

CHA Hawaii, whose parent is Cardiovascular Hospitals of America LLC, owns 54 percent of Hawaii Medical Center, while Hawaii Physician Group LLC, consisting of 130 Hawaii-based physicians, owns 45 percent and St. Francis Healthcare System owns 1 percent.

Hawaii Medical Center filed for bankruptcy in August 2008.