A new, 50,000-square-foot medical facility to house doctors’ offices and outpatient services is being developed by the Queen’s Health Systems on O‘ahu and leaders at Kona Community Hospital, with $50 million in proposed state funding.

As part of the collaboration, Queen’s will donate approximately three to five acres of land to the future site of the center.

The new medical facility is meant to be a companion to the new $400 to $500 million hospital that Queen’s plans to build off of Queen Ka‘ahumanu Highway near Costco.

Rendering of Queen’s hospital and outpatient care center in Kailua-Kona. (Photo courtesy: Office of the Governor)

“This partnership is historic for our region,” said Clayton McGhan, CEO of the Hawai‘i Health Systems Corporation’s West Hawai‘i Region, which includes Kona Community and Kohala hospitals. “It represents a shared commitment to strengthening health care in West Hawai‘i, not just for today, but for the generations that will come after us.”

Hawai‘i Gov. Josh Green announced Wednesday his plan to set aside $50 million in the upcoming proposed executive budget for the next fiscal year for the planning, design and prep work of the facility.

“For a long time, our region has struggled with many different challenges, like physician shortages and limited access to care,” McGhan said. “By teaming up with the Queen’s Health System and the State of Hawai‘i, we finally have a coordinated, sustainable way to tackle these issues together.”

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If the State Legislature approves Green’s funding request, McGhan said it will pay for the planning, design and site prep for the facility that would provide a modern medical center that meets community needs.

McGhan hopes legislators will approve the governor’s initial $50 million request. An additional $50 million will be requested for the construction of the facililty.

If all the funding is secured, the outpatient medical facility will be completed in four years.

Green, who worked as a physician on Hawai‘i Island for several years, said this was one of the happiest announcements he’s made as governor.

“It’s going to be transformative,” Green said.

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The new medical facility would mean shorter wait times for appointments, better access to care and more jobs.

“It will bring so much more health care to the Big Island that people will immediately see a change in their lives,” Green said.

Green said that while most health care can be delivered in the outpatient facility, “you do need a state-of-the-art hospital right next to it, because someone is going to need surgery or a serious emergency will occur.

“We’re building a health system for everyone. This is a step toward our future.”

Jason Chang, CEO and president of Queen’s Health System, said Wednesday’s announcement represents a proud moment for Queen’s because this is going to provide more care to the people of Hawai‘i.

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Chang said the discussion of building a new hospital in West Hawai‘i has been discussed for decades with little momentum. When he took over Queen’s a little over a year ago, Chang sat down with McGhan and talked about how the two health care systems could come together to create something special for the community.

“When you have two people who are aligned in their vision of what they want to create, it’s so easy to work together,” Chang said.

Chang said Queen’s is in the final stages of selecting an architect for the hospital. Once selected, they will move on to site planning.

Chang said the outpatient center is the first step in creating a medical hub in West Hawai‘i, as well as supporting the health care system’s long-term plan of attracting more providers, building strong care teams and making access to primary and specialty care easier in Kona.

Big Island lawmakers are committed to making this health care hub in West Hawai‘i a reality. Rep. Nicole Lowen, who represents North Kona, has helped secure funding for the Kona Community Hospital over the years that has been in desperate need of renovations.

“It’s exciting to see it move forward,” Lowen said.

She said the Big Island lawmakers are doing the their part “to advocate that the money stays in the budget.”

Sen. Dru Kanuha, who also represents the Kona area, said this partnership between the health care systems and the state is the first step in making a “strong case to our colleagues in the Legislature to secure the State’s share of the project funding.”