One hospital is making a second round of cuts to jobs in Hawaii.
In August, the Hawaii Medical Center announced it would cut 80 jobs, the hospital’s second round of job cuts in less than six months.
The Medical Center, formerly St. Francis Hospital in Liliha, already cut 89 Hawaii jobs in June, which the hospital did to streamline operations, according to an article by the Pacific Business News.
“Our turn-around experts recommended this action in order to help us survive in a difficult economic time for the heath care industry,” CEO Danelo Canete said in the article. “While it is a hard decision, we recognize the need and will follow their recommendation.”
The Medical Center already expects patient admissions to increase in coming months as physicians increase referrals and HMC West, located in Ewa, and HMC East, located in Liliha, undergo renovations.
“When that occurs, we will staff up again,” Canete added in the article. “We hate to lose these fine people, but it doesn’t make fiscal sense to keep them on under the current circumstances. This is a very difficult, but necessary step.”
In July, Hawaii’s education and health services industry employed 74,600 people, according to the United States Department of Labor Bureau of Labor Statistics, an increase of 2.5 percent from last year.
The Hawaiian healthcare system is unique from most other American systems in that it insures 95 percent of Hawaiian residents. Under the state’s plan, all businesses are required to provide healthcare to employees who work more than 20 hours per week.
The state also heavily regulates insurance companies, which helps keep the cost to employers low. Also, because of the system’s emphasis on preventative care, Hawaiians usually require less frequent hospital treatment than most other Americans, and total healthcare expenses for the state are lower.
Proponents of universal healthcare in the United States often use Hawaii as an example of a successful system, while critics say the system’s success is due in part to the state’s mild climate and successful island and tourist economy.