Major Healthcare Merger in Hawaii: HMSA and Hawaii Pacific Health Unite
HONOLULU (HawaiiNewsNow) – In a groundbreaking move, HMSA and Hawaii Pacific Health, which operates four key hospitals, have announced plans to merge. This could become one of the most pivotal healthcare consolidations in Hawaii’s history.
This merger is set to affect hundreds of thousands of residents and the entire medical community across the islands.
Industry analysts suggest this merger is a strategic effort to maintain local control and fend off potential acquisitions by mainland healthcare corporations.
Financial Challenges in Hawaii’s Healthcare System
During a forum on December 18, 2025, hosted by the Hawaii Medical Association, leaders from the state’s top three healthcare providers discussed the merger.
“Every healthcare system is currently operating at a loss,” stated Ray Vara, CEO of Hawaii Pacific Health, at the event.
Hawaii Pacific Health encompasses Pali Momi, Kapiolani, Straub, and Wilcox hospitals, along with associated clinics and specialists. Vara emphasized that partnering with HMSA, which is also facing financial difficulties, could lead to substantial savings.
“We anticipate saving billions over the next decade, which can be reinvested into our community,” Vara explained.
Innovative Healthcare Model on the Horizon
Vara proposed creating a system akin to Kaiser, which would streamline administrative processes and allow HPH doctors to bypass preauthorization from HMSA.
“Imagine applying this model across all patients in our network, removing unnecessary costs. We’re talking about saving hundreds of millions,” he noted.
Some of these savings could be used to collaborate with competitors like Queens to enhance healthcare services on neighboring islands.
Queens Medical Center’s Concerns
However, Queens Medical Center remains skeptical about the merger.
“We’ve been vocal opponents of this merger, fundamentally speaking,” said Jason Chang, CEO of Queens Health Systems.
Chang expressed concerns that the new HPH-HMSA system might attract healthier, well-insured patients, leaving Queens to care for more low-income, elderly, and chronically ill individuals.
“We don’t want Queens to become solely a safety net. We need a competitive environment to survive,” Chang emphasized.
Addressing Competition and Patient Choice
Vara assured that doctors would still have the freedom to work across hospitals and patients could choose their preferred healthcare providers.
“It’s unrealistic to think all 760,000 HMSA members will suddenly switch to Hawaii Pacific Health. We simply don’t have the capacity,” Vara stated.
Doctors share similar concerns about the merger’s implications.
“Key issues include patient access, physician workforce, and existing pressures,” said Dr. Nadine Tenn Salle, president of the Hawaii Medical Association.
However, Tenn Salle warned that inaction could lead to worse outcomes.
“If our healthcare system collapses, we might face takeovers by larger mainland entities, which could strip us of our autonomy,” she cautioned.
Awaiting Regulatory Approval
The merger requires approval from various state and federal agencies, which will evaluate its impact on the healthcare landscape and competition within the medical and insurance sectors.
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