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Bill would provide construction financing for West Maui Hospital

By Staff | Apr 10, 2014


WEST MAUI – Rep. Angus McKelvey and Sen. Roz Baker are backing a bill that authorizes the issuance of special purpose revenue bonds (SPRBs) to assist the West Maui Hospital Foundation Inc. in establishing a hospital on the West Side.

The measure, House Bill 2213 HD1 SD1, at press time advanced out of the Senate Ways and Means Committee.

Tenth District Rep. McKelvey explained, “This measure will provide special purpose revenue bonds, which serve as a funding mechanism the state makes available to nonprofit entities. Medical facilities can use this mechanism to help finance their projects and get them going.

“The funding will help bring much-needed emergency service options to West Maui and will also give us the critical long-term care that we need.”

Sixth District Sen. Baker added, “One of the sticking points to the successful completion of the West Maui Hospital has been affordable financing. HB 2213 authorizes the issuance of special purpose revenue bonds to provide construction financing for the facility.


“Although not an obligation of the state, SPRBs allow certain categories of expenditures, including hospitals, to access a favorable government rate for payment of the bonds. Hopefully, this mechanism will help move the hospital closer to becoming a reality for the community.”

The dollar amount of the bonds isn’t specified in the bill.

West Maui Hospital and Medical Center developer Brian Hoyle, president of Newport Hospital Corp. (NHC), said SPRBs will provide an additional financing option for the current and future development and operational needs of the West Maui Hospital.

NHC proposes to build the hospital on 14.99 acres of land purchased from Kaanapali Land Management Corp. on Kakaalaneo Road just below the Kaanapali Coffee Farms Development. Hoyle has secured a Certificate of Need for the project from the State Health Planning and Development Agency.

The development team is looking to arrange $50 million in construction financing for the facility.

“We are continuing with the process of obtaining the site entitlements for development of the West Maui Hospital and Medical Center from Maui County and expect a project construction start in mid-2015,” Hoyle reported.

The campus will consist of a 25-bed acute-care hospital, 40-bed assisted living facility, 40-bed skilled nursing facility, state-of-the-art medical office building and future drug and alcohol rehabilitation facility.

West Maui Hospital Foundation Inc. will serve as the operator of the hospital. Critical Access HealthCare LLC will manage the facility.

According to NHC, this plan, together with the formation of the West Maui Hospital Foundation, will fulfill the promise to the community to provide a “Center of Excellence” in acute healthcare with a 24-hour emergency room in West Maui.

The campus is designed to be an integrated healthcare services provider to meet the basic health and safety needs of the 65,000-plus people of West Maui.

Visit www.westmauihospitalandmedicalcenter.org for information on the project and updates.