Hospitals face crippling deficit
| By Kristen Consillio, The Honolulu Star-Advertiser | |
| McClatchy-Tribune Information Services |
The
That brings HHSC's projected deficit to
"To understand the gravity of this, you could probably close half of the HHSC hospitals and you would not erase the deficit,"
<p>HHSC -- the largest provider of health care in the islands -- is expecting a
But for the first time next year, HHSC and other state entities will be required by law to set aside money for retiree health benefits, adding another burden that could put in doubt the future of some of the struggling rural hospitals.
This year the state covered the contribution for HHSC, but starting in fiscal 2016, which begins
Center's chief executive officer. HHSC learned of its obligation last month, Lo said. HHSC will have to increase its contribution to health benefits by 20 percent every year until the amount reaches the 100 percent funding level in 2019.
"Once again this underscores the incredible challenges we have to make our community hospitals economically viable," said
Maui
"The system is broken and we urge creative, patient-centered solutions to develop a sustainable model of care for our rural and neighbor island communities," Chu said. "Health care is unavoidably expensive and our current levels of service to our communities will require a greater commitment of resources than in the past -- whatever the source."
Part of HHSC's financial problems stem from its facilities in rural communities that are unable to generate sufficient revenue to support operations.
In addition, the state Legislature cut the hospitals'
The hospitals rely on state money for 15 to 20 percent of their annual
HHSC acts as a "safety net" for the state's neediest population -- many of the poor and chronically ill. Its aging hospitals are in a unique situation with nine of the 12 facilities having 85 percent or more patients covered by government-sponsored
What's more, the Affordable Care Act, also known as Obamacare, has restrained the growth of
"What is even more scary is that this is only the retiree health fund," said Lo. "Sooner or later they are going to probably have to start funding pension, too."
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