The state is partnering with Queen’s Health Systems to develop a new outpatient medical facility alongside a planned new hospital in Kailua-Kona on Hawai‘i Island.

Queen’s Health Systems announced last year plans to build an 80-bed hospital in West Hawai‘i along with a workforce housing development and other health care facilities in Kona.

But on Wednesday, Gov. Josh Green announced a partnership between the state, Queen’s Health and Hawai‘i Health Systems Corporation for a 50,000-square-foot facility to stand adjacent to the future hospital to provide additional expert care to hospital patients.

“[Kona Rep.] Nicole Lowen and I have been talking about this for years,” Green said at a news conference Wednesday. “A hospital that meets the needs of that part of Kona makes it so much better for our kūpuna who will constantly have some needs.”

Jason Chang, president and CEO of Queen’s Health, said Wednesday that he hopes both the new hospital and outpatient facility can be completed and serving patients within five years.

The outpatient facility, Chang said, will be a “one-stop hub” for specialist care that previously would have required patients to travel to other facilities on the island — such as Queen’s North Hawai‘i Community Hospital in Waimea — or be airlifted to O‘ahu.

Green said the state will commit $50 million in state bonds to fund the outpatient facility, while additional funding may be available through a federal Rural Health Transformation Program, which will award Hawai‘i $200 million a year for the next five years.

While the state legislature will need to approve the funds during the 2026 legislative session, HHSC is expected to make additional funding requests as the project progresses.

Clayton McGhan, HHSC’s West Hawai‘i Region CEO, said that, although construction of the new facility is still a ways away, residents are already benefiting from the partnership. Surgeons from Queen’s Health are already practicing at Kona Community Hospital, giving patients better access to services they may have needed to travel to receive.

McGhan and Chang both said the new West Hawai‘i health care infrastructure will help the island retain doctors, something that has been a challenge for the state in general and the region in particular. Green said West Hawai‘i’s population growth has outstripped development for medical services, leaving doctors to pursue careers elsewhere.

Chang said the new outpatient facility is expected to generate an additional 350-450 jobs.

Green acknowledged that the current state of health care in the country — particularly the impending cuts to Medicaid and the Affordable Care Act which will take effect in 2027 — could threaten access to medical services for more than 8,000 state residents. Because of this, he said, state investment in medical infrastructure is more imperative than ever.

Green added that next year’s state budget will include a $16.5 million tax credit for ACA beneficiaries whose coverage may be threatened.

Meanwhile, Chang assured that “care will not be sacrificed” even amid uncertain health care impacts, and said the planned hospital will reduce wait and travel times for patients in need.

“We’ve committed to building ICUs, building an advanced emergency department, putting in advanced diagnostics, a CAT lab,” Chang said. “We have a helipad, because patients that need to be transferred to the trauma center will be able to do that in the fastest possible way.”

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