Queen’s Health Systems to Acquire Hawaii Medical Center West
- May 22, 2012
by Adriana Pop, Associate Editor
Queen’s Health Systems, the corporate parent of The Queen’s Medical Center, has signed a letter of intent and confidentiality agreement with St. Francis Healthcare System to explore the possibility of acquiring the former Hawaii Medical Center West campus.
Formerly known as St. Francis West, the Ewa facility located on Fort Weaver Road, along with the Hawaii Medical Center in Liliha, are in the process of being returned to St. Francis Healthcare System. Both hospitals closed in December last year, as part of Hawaii Medical Center’s lengthy bankruptcy process.
The Star-Advertiser reports that St. Francis sold the hospitals in January 2007 to Hawaii Medical Center (HMC) LLC, a for-profit joint venture between Hawaii Physician Group LLC and Kansas-based Cardiovascular Hospitals of America. The purchase price was $68 million, and St. Francis provided $40.2 million financing for the sale.
HMC subsequently filed for Chapter 11 bankruptcy protection; the first time in August 2008, and again in June 2011, after becoming a nonprofit organization. According to the Pacific Business News, last month U.S. Bankruptcy Judge Robert Faris ordered that the two HMC hospitals be returned to their former owner St. Francis, the largest secured creditor in the company’s bankruptcy.
In a recent statement, Queen’s Health Systems said it would conduct due diligence to determine the feasibility of reopening the West Oahu facility as an acute care hospital. The due diligence will include physical, environmental and regulatory review. Further terms of the agreement remain confidential.
HawaiiNewsNow reports that Hawaii Pacific Health was also very interested in acquiring the West facility and now appears to be out of the running. Chuck Sted, Hawaii Pacific Health CEO, said: “Our motive is to make sure the people on the west side of the island have access to great healthcare, and this is going to solve that, so we’re for anything that gets to the same result.”
Photo credits: www.queensmedicalcenter.net