Tracy Dallarda Communications

808-268-6167 (mobile)
Tracy.X.Dallarda@kp.org

Wailuku, Maui, HI (July 20, 2022) – Maui Health is aware of public concerns expressed by a member of our medical
staff. All claims and concerns are taken seriously and will be reviewed, investigated, and appropriate action will be
taken, if necessary. However, there are some matters that can be clarified immediately:

This month, Maui Health marks five years of operation as a subsidiary of Kaiser Foundation Hospitals. Since the state
moved to privatize Maui hospitals in 2017 there have been challenges, significant improvements, and accomplishments
have been achieved. This is a testament to the dedication of the Maui Health team of health care professionals who
have devoted their lives to caring for the people of Maui.

State Appropriations
Before the state moved to privatize Maui hospitals, they were operated by Hawaii Health Systems Corporation (HHSC).
The year before the Maui Health affiliation, state fiscal year ending June 30, 2016, HHSC-Maui Region received $37
million from state appropriations. This fiscal year, 2023, state appropriations will provide $8.9 million to Maui Health.
The reduction in state appropriations since the 2017 transition to Maui Health has saved the state’s taxpayers $97
million. While Maui Health continues to receive state subsidies to support its operations, significant reductions from
years’ past have been achieved. All state subsidies, including those that HHSC received, were agreed to by the state and
are publicly reported and available for review. Additionally, all state funding and any and all net proceeds Maui Health
generates are invested in Maui Health and stay within the Maui community. Kaiser Foundation Hospitals, Maui Health’s
corporate parent, does not share in Maui Health’s revenues, nor does Kaiser Foundation Health Plan or its affiliates.

Healthcare Worker Burnout

One third of the past five years has been dominated by the pandemic. Health care across Hawaii and the country has
been immensely impacted as health care professionals continue to work with little relief from the pace. We understand
our employees and physicians are tired, and many are burned out. Our team has been working to address burn-out and
provide opportunities to engage in wellness activities and to recharge. The pandemic and its effects have contributed to
a well-documented nationwide trend of many professionals reflecting on balance in their lives and deciding to make
changes. There are many reasons people choose to leave and some physicians have decided to move on from Maui
Health. While we cannot comment on their specific reasons, we do honor their choice to make the best decisions for
themselves and their families.

Physicians on Maui
Having full-time, qualified, experienced physicians for Maui’s health care needs is a priority. We are not alone in our
drive to find experienced physician specialists to move and live in the community and care for area residents and
visitors. Recruiting physicians is a challenge for hospitals across the state and the country. We always prefer to have
Maui physicians care for Maui residents and visitors; however, until we have secured full-time, on-island physician
specialists, it is necessary to use locum tenens (temporary) providers for specialty care. This is a common practice in
health care, and it is to ensure continuity of care is provided.

Emergent Medical Associates (EMA)

Maui Health emergency department physicians are provided and managed by a contractual agreement with EMA. EMA
is a highly experienced, privately owned physician organization and is not funded by private equity. EMA was selected
following a competitive request for proposal (RFP) process managed by a selection committee composed of the Maui
Health board of directors and members of the medical staff, none of whom had a financial interest in EMA. The
committee unanimously selected EMA to manage care provided by physicians in Maui Health emergency departments.
Michael Rembis, CEO, does not now, nor has he ever had any financial interest in EMA.
Maui Health is committed to serving our community, our employees, physicians, volunteers and in providing safe,
compassionate health care to all we serve.