Hawaiʻi Health Systems, Kaiser agree on new 4-year contract

Kaiser Permanente and Hawaiʻi Health Systems Corp., after months of talks, have reached an agreement in a new 4-year contract covering service rates for Kaiser members at all of the health system’s Hawaiʻi facilities.

“We are very pleased with this new contract that supports our goal of providing high-quality and affordable health care to our members,” said Greg Christian, president of Kaiser Foundation Health Plan and Hospitals, Hawaiʻi. “[Hawaiʻi Health Systems Corp.] has long been a valued community partner and we appreciate the important role they play in our state in providing acute care and long-term services on the neighbor islands. We look forward to our renewed partnership.” 

During the next 60 days, the two health care providers will focus on finalizing the remaining details of the agreement.

Kaiser members will continue to have uninterrupted access to care at Hawaiʻi Health Systems facilities, including Hilo Medical Center, Kona Community Hospital, Hale Ho‘ola Hamakua, Kaʻū Hospital and Kohala Hospital on the Big Island and Kauaʻi Veterans Memorial Hospital and Samuel Mahelona Memorial Hospital on Kauaʻi. 

“[Hawaiʻi Health Systems Corp.] is excited that we are able to continue our long-standing partnership with Kaiser Permanente with a new contract that recognizes the quality healthcare that our facilities provide to Kaiser Permanente members in the communities we serve on the Neighbor Islands,” said the provider’s President and CEO Edward N. Chu.

Chu said since his organization is subsidized by the state to provide its services, Hawaiʻi Health Systems Corp. is responsibile to every taxpayer in Hawaiʻi to make sure fair payment for health care services in island communities.

The health care provider last year reached new agreements with the Hawaiʻi Medical Service Association and in June with UHA Health Insurance.

“As stewards of state funds, [Hawaiʻi Health Systems Corp.’]s new payor contracts will help to ensure that subsidized health care services are appropriately paid for,” Chu said.