Hawaii Medical Center to close two hospitals

After filing for bankruptcy in June, Honolulu-based Hawaii Medical Center will close its two hospitals in Oahu, local news sources report.

The hospitals are Hawaii Medical Center East in Liliha and Hawaii Medical Center in Ewa. According to reports, about 990 people will lose their jobs as a result of the closures, which are expected to take place in the next month. The decision came after Hawaii Medical Center failed to reach an agreement with a potential buyer, Ontario, Calif.-based Prime Healthcare Services.

In a news report Friday, Hawaii News Now included a statement from Hawaii Medical Center CEO Maria Kostylo that said the organization has tried to keep the facilities open and preserve jobs through bankruptcy protection and a potential sale. But St. Francis Healthcare System's withdrawal this past October from Hawaii Medical Center's reorganization put the hospital in a "precarious position," Kostylo's statement said.

Hawaii Medical Center's summer bankruptcy filing was not the first time it filed for chapter 11. The healthcare provider also filed for bankruptcy in August 2008, about 18 months after purchasing the hospitals from St. Francis Healthcare System. It later emerged from bankruptcy in August 2010 before filing again in June 2011.