HONOLULU — Public hospitals across Hawaii are finding ways to reduce staff and cut services because they don’t have enough money to make ends meet.
HONOLULU — Public hospitals across Hawaii are finding ways to reduce staff and cut services because they don’t have enough money to make ends meet.
Executives from the Hawaii Health Systems Corporation told lawmakers Friday that even after layoffs they are facing a $30 million deficit in 2015.
One hospital on Maui chose to close its adolescent psychology unit because it couldn’t sustain the appropriate staffing levels to provide the services. It’s also considering cuts to oncology and dialysis services if the situation doesn’t improve.
“We’re exploring every other option first,” said Wesley Lo, regional CEO of Maui Memorial Medical Center.
The hospital group spans the archipelago and provides the only acute care on Maui and Lanai. It had asked for $150 million in financial help for 2014, but the Legislature approved $111.4 million.
Some hospitals only have several days of cash on hand to operate. The problem is caused in part because hospitals in Hawaii’s rural regions can’t generate enough revenue to support operational costs.
On Oahu, a long-term care facility will be out of cash in May and unable to make payroll payments, said Derek Akiyoshi, CEO for the Oahu region of Hawaii Health Systems Corporation. It is ending its adult day health care on Saturdays.
“Ultimately our core long-term care services will have to be eliminated,” Akiyoshi said.
In East Hawaii, three out of four patients are covered by Medicare and Medicaid, which don’t fully reimburse hospitals for services, said Gary Yoshiyama, board chairman for the group’s East Hawaii region. The region also is dealing with rising health care costs and an inability to pay for its collective bargaining agreements.
“We cannot absorb the cost without deep harm to our community,” Yoshiyama said.
“I still have to find about $3 million bucks to make payroll every time through the end of 2015,” said Scott McFarland, CEO of the Kauai Region. “If there is one hiccup, we will not make payroll.”
Lo is hoping to avoid further service reductions on Maui by entering into a partnership with a private company or securing more money from the Legislature, he said.
The Maui region faces an $11 million deficit, which it attributes to stagnant reimbursement levels and reductions in Medicare payments.
“We will be faced with this over and over again on a model that is not sustainable right now,” Lo said.