That was one of the revelations during a brief hearing in U.S. Bankruptcy Court Monday morning.
Hawaii Medical Center CEO Maria Kostylo said there are several interested buyers and at least one had provided a $250,000 good faith deposit toward a possible purchase.
“MidCap Financial is secure that we will find a buyer and they have continued to fund our ongoing operations,” said Kostylo. “HMC East and HMC West are both open (and) accepting patients.”
According to court records, MidCap is willing to provide up to $2 million to keep both hospitals up and running until the end of November. The emergency funds are needed after St. Francis Healthcare System pulled back on a plan to assume ownership of both facilities.
What remains unclear is whether any potential buyer would purchase both hospitals in one deal. Kostylo confirmed HMC is willing to sell the facilities piecemeal.
“We are considering all options at this time,” she said.
HMC West is considered more financially attractive than its counterpart in Liliha. It has the only emergency room in Leeward Oahu and services nearly 160,000 residents.
Joan Craft, president of the Hawaii Nurses Association, said the facility serves a critical public need in West Oahu.
“HMC West is the only thing out there and I couldn’t imagine living out there and not being able to go to that emergency room,” she said. “If that goes away there’s going to be a hole in care.”
Both hospitals employ 990 workers, who would be forced out of their jobs if a potential buyer doesn’t step forward. Craft says it’s an anxious time for 149 nurses at HMC West and another 116 nurses at HMC East.
“I couldn’t imagine what it would be like right now to not have your regular wage and your medical benefits,” she said. “It’s not just the individual – there are whole families that are affected.”
A buyer of either hospital would be forced to enter negotiations with HNA over a new contract almost immediately. The current deal with HMC West expired December 31 of last year. Nurses at that facility have been operating under contract extensions. The agreement with nurses at HMC East was extended one year and expires at the end of November.
If both hospitals are forced to shut down, Kostylo says there are sufficient funds to ensure a smooth transition.
“We have ensured that it would be an orderly wind down, making sure our patients are taken care of appropriately.”
Complicating any potential purchase of the hospitals is the fact that St. Francis still owns the land both facilities are built on.
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See the original article at: KHON2 Local News
