Hawaii Medical Center, the financially strapped operator of the former St. Francis hospitals, yesterday announced a change in top management as its chief executive officer stepped down to devote more time to his medical practice.

Heart surgeon Dr. Collin Dang was named CEO after Dr. Danelo Canete said he was resigning the post.

Dang, 64, takes over at a troubling time for the operator of Hawaii Medical Center-East in Liliha and Hawaii Medical Center-West in 'Ewa. The operator has had three rounds of layoffs this year as it tried to stem losses that led to its filing a Chapter 11 bankruptcy on Aug. 29.

Dang was part of a group of more than 130 physicians that bought a 45 percent stake in Hawaii Medical Center two years ago. Partner Cardiovascular Hospitals of America owns all but one percent of the remaining interest.

Canete, 71, said he wanted to relinquish leadership duties to focus on his heart patients after two years of overseeing the hospitals' operations. Dang, a respected surgeon who was chief of cardiac surgery at Hawaii Medical Center-East, praised Canete's efforts to reduce length of stay for patients, increase reimbursements from insurance companies and upgrade medical and information technology equipment.

Canete, however, could not reverse losses at the hospitals, and Hawaii Medical Center had to file for financial reorganization after a key lender declined to extend a loan.

The announcement of Dang's appointment came less than a week after Hawaii Medical Center said it was laying off 150 of its 830-person workforce. In earlier layoffs this year, it let go 169 people.