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Legislature 2002


Opponents decry
dual state health systems

A bill would remove
3 neighbor-island hospitals from
Hawaii Health Systems Corp.

Maui Memorial appoints new hospital CEO


By Bruce Dunford
Associated Press

Removing Maui Memorial, Kula and Lanai Community hospitals from the state Hawaii Health Systems Corp. would be a very bad idea, the head of the quasi-public agency told state lawmakers yesterday.

A House-passed bill setting up a separate organization to operate the Maui County medical facilities "would cripple our safety net system by dividing the Hawaii Health Systems Corp.'s team of 12 hospitals into two or more smaller systems," health systems President Thomas Driskill told the Senate's Health and Labor committees.

The two committees delayed a decision on the measure until Friday.

The five-year pilot project allowed under the bill would cost the dual system at least $35 million the first year and up to $20 million each following year "assuming that the operation could be maintained at all," he said.

"Unfortunately, the most realistic scenario is that you would ultimately close down the safety net system because the state of Hawaii simply does not have the extra millions of dollars that would be needed to throw at these divided systems to keep up operations," Driskill said.

A key backer of the measure is Rep. Bob Nakasone (D, Waikapu-Wailuku-Kahului), who introduced the bill last year.

Maui Memorial is the only moneymaking hospital in the system and its profits are used to support the facilities that don't break even, removing any incentive for Maui Memorial to be more efficient, according to Nakasone.

Testimony was overwhelmingly against the bill, even those from Maui.

"Taking the Maui facilities out of the Hawaii Health Systems Corporation would be a terrible mistake," said Herbert Sakakihara, chairman of the Maui Public Health Facility Management Advisory Committee.

"It would be extremely inefficient to create two separate corporations to run the state hospitals. Clearly, this extra cost would be borne by the people of the state and is unnecessary waste," Sakakihara said.

Driskill's concerns were echoed by dozens of doctors and officials from the neighbor islands, including the Big Island and Kauai where the medical facilities would remain in the health system.

Orianna Skomoroch, the health system's Kauai regional chief executive officer, said the 6-year-old agency "brought about quantifiable improvements" by pooling financial resources and pooling buying power for discounts.

The centralized system assists in recruiting medical personnel, coordinating affiliations with private hospitals, coordinating quality care and education programs and allowing each region to meet the specific needs of their communities, she said.

It provides financial, intellectual and educational strength for all the hospitals, Skomoroch said.

Supporting the proposal was Dr. Peter Galpin, representing the Maui County Medical Society.

"The net effect of HHSC control in short, although well intentioned, has been to leave the medical staff and community alienated from (Maui Memorial) and an almost yearly turnover in the CEO," he said.

"Rather than trying to prop up the unprofitable portions of HHSC by removing profits from (Maui Memorial) and spreading them across the state, these other institutions should be recognized as providing necessary services to the state which are budgeted by the state," Galpin said.

A common thread from both supporters and opponents was that there is a desperate need for more long-term care facilities throughout the state to cure the dilemma of nonpaying long-term care patients being in acute care beds because there's other place to put them.



Legislature Directory

Legislature Bills & Hawaii Revised Statutes

Testimony by email: testimony@capitol.hawaii.gov
Include in the email the committee name; bill number;
date, time and place of the hearing; and number of copies
(as listed on the hearing notice.) For more information,
see http://www.hawaii.gov/lrb/par
or call 587-0478.


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Maui Memorial appoints
new hospital CEO


Star-Bulletin staff

WAILUKU >> John Schaumberg has been appointed chief executive officer of Maui Memorial Medical Center.

Schaumberg, 55, a former administrator at Lanai Community Hospital, had been working as acting chief executive officer since late November, after the resignation of Boyd Kleefisch.

Schaumberg, whose salary will be a little more than $184,000, will also be responsible for the administration of Lanai Community Hospital and Kula Hospital.

In the past, Maui Memorial hospital workers have complained about the previous administration's unilateral decision-making and its lack of communication in dealing with them.

Some hospital employees are hoping the new administration will exercise a stronger team approach in solving problems.



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