A court of appeals dissolved an injunction that temporarily barred transaction activities relating to Wailuku, Hawaii-based Maui Memorial Medical Center, Kula (Hawaii) Hospital and Lanai (Hawaii) Community Hospital, according to Maui Now.
The Hawaiian state legislature passed a law to turnover Honolulu-based Hawaii Health System to private ownership in 2015. Oakland, Calif.-based Kaiser Permanente has been slated to takeover operations at all three hospitals starting Oct. 1. The transaction was temporarily halted when the United Public Workers union sued the state to prevent the transition from taking place.
The 9th Circuit Court of Appeal's ruling allows all transition activities between the state and Kaiser Permanente-entity Maui Health System to resume at the three facilities.
UPW and the state reached an agreement August 13.
According to the settlement, Oakland, Calif.-based Kaiser Permanente will exclusively manage and operate the Maui Region hospitals beginning in November. All 536 UPW employees will work under Kaiser supervision and will be covered by UPW collective bargaining agreements until June 2017. Once the period ends, Kaiser will offer to hire UPW employees for a period of six months beginning in July 2017.