KAANAPALI — A bill passed during the 2023 Legislative Session provides a financial tool for the West Maui Hospital Foundation Inc. to secure funding for the critical access hospital project on the bond market.

House Bill 1255 authorizes the state, with the approval of the governor, to issue $20 million in special purpose revenue bonds to assist the foundation with financing of costs related to design and construction, infrastructure improvements and equipment for the West Maui Hospital and Medical Center planned in Kaanapali.

Foundation Board Member Jo Anne Johnson-Winer commented, “Our sincere thanks to State House Representative Elle Cochran and Senator Angus McKelvey for their support in passing HB1255. The bill was for a 20 million dollar special purpose revenue bond from the State of Hawaii that will enable us to move forward with our West Maui Hospital.

“We will now ask that the County of Maui agree to act as the guarantor for the bond in order to ensure a successful bond issue. With 20 million dollars already invested by Newport Hospital Corporation in land and underground infrastructure, we need roughly $40 million to complete the project,” she continued.

“Even though we did not receive any funds from our state grant application, we will be applying for other grants in addition to public funding and private donations to help make this a reality. We sincerely thank all those who have supported this project from day one.”

The 14.99-acre fully entitled and Hospital Certificate of Need-approved site for the hospital on Kakaalaneo Drive is fully graded with all in-ground drainage lines completed.

Construction of the Kakaalaneo Drive sewer line mauka of the West Maui Hospital and Medical Center site is continuing, with an offsite water line to be installed after completion of the sewer line in the fall of this year.

Plans and permits for a five-bed critical access hospital (CAH) on 5.085 acres with 24-hour emergency room, three operating rooms, radiology, lab, pharmacy and outpatient services are scheduled to be completed this year.

Construction of the critical access hospital is expected to start in 2024, with completion in 2025.

Medical office/clinic building(s) and an assisted living facility are also part of the West Maui Hospital and Medical Center project and are expected to be built in 2024-25.

The West Maui Hospital building will be owned and operated by the nonprofit West Maui Hospital Foundation Inc. subject to a long-term Ground Lease from Newport Hospital Corp.

Johnson-Winer said the foundation will apply for a $20 million loan from the U.S. Department of Agriculture and seek other funds — public and/or private — “… so we can meet our immediate needs, which total around $4 million.

“Newport Hospital Corporation has provided over 20 million dollars in getting us to this point, so now we are asking for the state, county and community to help make this hospital a reality. We will still have loans and bond debt to repay, but if we can reduce these obligations for our nonprofit foundation, it will give us a leg up once we open our doors. All hands on deck at this point,” she concluded.

For more information, contact Johnson-Winer at johnsonj031@hawaii.rr.com.