St. Francis Healthcare System of Hawaii has agreed to sell its two Oahu hospitals to a group of local doctors and a Kansas-based hospital operator for an undisclosed price, hospital officials said.
Cardiovascular Hospitals of America in Wichita, Kan., and 100 physicians headed by Danelo Canete, M.D., will take over 188-bed St. Francis-Liliha and 102-bed St. Francis Medical Center-West after completing due diligence in 90 days. The buyers will examine the hospitals' finances and operations before signing a final agreement to purchase. The deal could be completed by year-end.
There were about six bidders for St. Francis, which operates the largest hospital-based dialysis facility in the nation and is the only medical center in Hawaii to perform kidney, bone marrow, liver, pancreas and heart transplants.
The healthcare system, founded on a mission to treat anyone regardless of ability to pay, is sponsored by the Sisters of the Third Franciscan Order of Syracuse, N.Y. About 70% of patients at the St. Francis hospitals are covered either by Medicare or Medicaid.
"Overall, their proposal best addressed the objectives of the sisters," said Eugene Tiwanak, chief foundation officer for St. Francis. "Essentially, there was a continuation of the sisters' (philosophy) to the commitment and care for patients."
St. Francis employs 1,700 full-time workers and had been shopping the two hospitals for the past couple of years to gain relief from declining earnings and a debt load that now totals about $30 million.