Nearly 90 employees will be laid off and some services will be cut at three Hawaii hospitals — Hilo Medical Center, Ka‘u Hospital and Hale Ho‘ola Hamakua — due to a projected $7 million deficit in the fiscal year beginning July 1, according to a news release.
The hospitals are part of the East Hawaii Region of state funded hospital system Hawaii Health Systems Corporation, which is facing a $50 million shortfall overall for fiscal 2016 as a result of higher costs and lower reimbursement rates incurred while servicing a fast-growing population.
Here are four things so know about the planned cuts and layoffs.
1. Planned closures include home care services as well as one wing of adult inpatient psychiatric care at Hilo Medical Center, according to the release.
2. Service cutbacks will reduce the number of long term care beds available at the three hospitals.
3. Additional cuts will be necessary in many departments and a total of 87 people, or approximately 7 percent of the total workforce, will lose their jobs as a result of these planned closures and cutbacks, according to the release.
4. In a statement, East Hawaii Regional Board Chairman Gary Yoshiyama said of the plans, "Our budget shortfall will have considerable impact on healthcare facilities in East Hawaii. Region-wide cost cutting measures have already been implemented and service cutbacks and layoffs are the only remaining option for our financial viability."
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