The state is joining forces with The Queen’s Medical Center to fill a gap in health care on the west side of
Hawaii island.

Gov. Josh Green on Wednesday announced plans by a new public-­private partnership to build a new medical facility, with $50 million in state bonds, next door to the new hospital planned by Queen’s in Kailua-Kona.

The Hawaii Health Systems Corp. and Queen’s have signed a memorandum of understanding
to jointly develop the 50,000-square-foot
outpatient care center.

“It will be transformative,” said Green at a press conference Wednesday. “It will bring so much more health care to the Big Island, that people will immediately see a change in their lives. The West Side (of the Big Island) is one of the fastest growing parts of our state…and it’s been underserved for far too long.”

He called it a “game changer,” as attracting physicians and nurses to stay in the rural area long-term has been a challenge, particularly with many of the facilities being older.

It will also shorten wait times for patients, he said, and lead to the creation of hundreds of health care jobs on the island.

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Under the MOU, Queen’s will donate three to five acres out of 30 acres it owns to HHSC’s West Hawaii Region as the future site of the outpatient center next to the new hospital it is building.

“This new Outpatient Care Center will provide a seamless transition between inpatient and outpatient care, while creating a one-stop hub for primary and specialty care services that will reduce wait and travel times for patients,” said Jason Chang, Queen’s president and CEO in a news release. “We are pleased to enter into this partnership with the state to deliver the care this community needs.”

The outpatient facility — basically a hospital that treats patients not requiring an overnight stay — will offer clinical services such as diagnostic lab tests and routine checkups, along with doctors’ offices.

But if there is an emergency, Queen’s will be next door.

Queen’s, which runs the North Hawaii Community Hospital in Waimea, last December announced plans
to build a modern, 80-bed hospital in Kona with a state-of-the-art emergency department, ambulatory care center, and helipad to help with interisland patient transfers.

Additionally, Queen’s is developing housing at the site, and exploring an
affordable housing program that would offer employees the opportunity to purchase homes at below-­market rates.

Chang said the campus is intended to be a “one-stop hub” and that the partnership allows physicians and specialists from two different medical groups to work synergistically.

“For a long time, our region has struggled with many different challenges, like physician shortages and limited access to care,” said Clayton McGhan, CEO of the HHSC West Hawaii Region. “By teaming up with The Queen’s Health System and the state of Hawaii, we finally have a coordinated, sustainable way to tackle these issues together.”

He added, “And the good news is it’s already working. Patients are feeling the impact right now. Queen’s surgeons have started rotating at Kona Community Hospital, giving people access to services they used to travel across the island or even off island for. This is exactly the kind of care our communities deserves close to home.”

HHSC is asking for an initial $50 million in state funding for the planning, design, and site work for the new outpatient center, with additional funding requests to complete it.

Green said the state is also expecting to receive $200 million per year for five years in federal grants to improve rural health care in Hawaii.

He also shared that
$16.5 million has been added to the upcoming fiscal year’s state budget to cover the loss of enhanced federal tax credits for residents covered by the
Affordable Care Act.

Approximately 24,000 Hawaii residents are enrolled in the ACA health care exchange, also known as Obamacare. Green said an estimated 8,000 people were poised to lose health insurance due to the tax credits expiring on Dec. 31.

Green said given the efforts put in to expand infrastructure in Kona, this was the right time to invest in this new outpatient care center.

“As a physician from the Big Island,” said Green, “this has got to be one of the happiest moments I’ve got.”