Business
For-profit Hawaiian hospital system files bankruptcy plan
NEWS IN BRIEF — Posted April 13, 2009
Hawaii's only for-profit hospital system plans to convert its HMC East hospital in Liliha to a nonprofit later this year as it tries to emerge from Chapter 11 bankruptcy. Its other hospital, the more profitable HMC West in Ewa Beach, will remain a for-profit.
On March 30, HMC asked the U.S. Bankruptcy Court in Honolulu to reduce the $46 million it owes to St. Francis Healthcare System of Hawaii for the two hospitals and $14 million for the land lease. HMC purchased the hospitals from St. Francis in January 2007 for $67.9 million. It filed bankruptcy in August 2008 after its lender refused to extend existing loan agreements for the two hospitals.
HMC is a partnership of CHA Hawaii, an affiliate of Cardiovascular Hospitals of America, a hospital management company, and the more than 130 physicians in Hawaii Physician Group LLC.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2009/04/13/bibf0413.htm.