HHSC and HMSA reach new 3-year contractual agreement after lengthy negotiations – State of Reform


Hawaiʻi Health Systems Corporation (HHSC) and the Hawaiʻi Medical Services Association (HMSA) have reached an agreement for a new 3-year contract, where HHSC will provide health care services to HMSA members.

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HHSC is a public hospital system that operates 847 licensed beds in facilities spread across 3 different islands. It is Hawaii’s safety net for acute care (on nearby islands) and long-term care, meaning it provides services to everyone, regardless of an individual’s health insurance or of his ability to pay.

According to a press release, HHSC has been negotiating in good faith with HMSA since March 2022, with the previous contract due to end on June 30, 2022. HMSA offered to extend the contract for an additional 30 days to continue negotiations, which HHSC agreed to.

In a Release Before reaching an agreement, HHSC President and CEO Dr. Linda Rosen said the payment HHSC hospitals receive from HMSA is “well below the national average and below our private counterparts.” here in Hawaii”.

Although HMSA has both commercial and Med-QUEST members, this contract will only apply to commercial members. The contract will affect HHSC facilities on the island of Hawaii (Hilo Medical Center, Hale Hoʻola Hamakua, Kaʻū Hospital, Kohala Hospital, Kona Community Hospital) and Kauaʻi (Kauaʻi Veterans Memorial Hospital and Samuel Mahelona Memorial Hospital).

“We are thrilled to have entered into an agreement with HHSC that enables continued access to health care throughout the State of Hawaii, especially on neighboring islands,” said Jennifer Diesman, Senior Vice President of HMSA, Government Policy and Advocacy, in a statement. the announcement of the agreement.

Although financial details are not publicly available, Rosen said the new contract “will help close the payment gap.” HHSC, which is publicly funded, demand about $753.8 million in its fiscal year 2023 budget request to the General Assembly earlier this year. The finalized budget was signed by Governor David Ige on July 7, 2022.


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