St. Francis Healthcare Receives $80M to Upgrade Foreclosed Hawaii Medical Centers
- Feb 17, 2012
St. Francis Healthcare System of Hawaii will receive from the state $80 million in prceeds from the sale of revenue bonds for the upgrade of recently foreclosed hospitals.
The hospitals are Hawaii Medical Center (HMC) West in Ewa and Hawaii Medical Center East in Liliha. The upgrades, which include the renovation of the buildings, the courtyard and the parking garage, and the modernization of the medical equipment, are meant to improve the attractiveness of the properties for marketing purposes.
As reported by Pacific Business News, the revenue was obtained through the House Bill 2345, which stipulates the authority of the department of budget and finance to issue special-purpose revenue bonds that are meant to assist non-profit corporations that provide health care facilities to the general public. On Feb. 10, the bill had passed the House Health Committee with seven positive votes and none against it. Three members of the committee were excused.
In June 2011, HMC had filed for a second Chapter 11 bankruptcy reorganization. In addition, HMC had made an agreement with St. Francis that entailed the latter to retake ownership of the hospitals. When St. Francis backed down, and HMC couldn’t find a new buyer, the two hospitals were shut down and about 1000 employees were laid off.
Since St. Francis has been the largest secured creditor in the bankruptcy – they had financed more than $40 million of the $68 million sale to HMC, the properties will be eventually returned to them.