Lingle cuts $11M appropriation for Maui medical center
The Maui News
HONOLULU — Gov. Linda Lingle has used her power to make a line-item veto to eliminate an $11 million appropriation to Maui Memorial Medical Center because it already has secured private funds.
The $11 million has already come as a first installment of a $130 million interim and long-term financing loan from JPMorgan Chase Bank, a financing arrangement that allowed Maui Memorial to control its own cash and cut ties earlier from the Hawaii Health System Corp., said Wesley Lo, the hospital's chief executive officer.
A portion of the $11 million — $5 million – went to the HHSC as part of a negotiation to achieve Maui Memorial's fiscal autonomy, Lo said. The remainder of the money will be used for working capital to meet payroll, pay vendors and take care of other hospital operations.
Within the next 60 days, another $19 million is expected to come from JPMorgan, Lo said. And that will be used for hospital operations next fiscal year, which begins in July.
The balance of $100 million will be used to finance the hospital's planned Heart, Brain and Vascular Tower, he said.
"We didn't want to have to use taxpayer money if at all possible," Lo said.
After the JPMorgan loan came through, the state appropriation wasn't needed, he said.
