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Queen’s Health outlines $560M hospital and outpatient campus plan for West Hawaii, seeks state funds
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Summary
Queen’s Health Systems presented plans for a new West Hawaii hospital (~$560 million), an outpatient building (about $100 million) and workforce housing; the nonprofit said it will fund the balance and has requested $50 million (supplemental) and an additional $50 million in the biennium, with architect selection imminent and a construction award target of May 2028.
Queen’s Health Systems representatives told the Communications Reports & Council Oversight Committee on March 17 they plan a public‑private campus in West Hawaii that includes a new hospital (approximate current estimate: $560,000,000), a medical office/outpatient building (about $100,000,000), and workforce housing to help recruit and retain staff.
Jason Chang, president and CEO of Queen’s Health System, said the goal is to keep more patients on-island by expanding local inpatient and specialty services rather than transferring patients to Oahu. Clayton McGahn, CEO of the West Hawaii Region, described needs identified in the system’s utilization studies: provider shortages (roughly 25 providers short), long waits for specialists (30–60 days), and substantial off‑island care usage (the transcript cited that about 40% of inpatient and 62% of outpatient patients sought care off island in the study period).
Queen’s described the project as a complete public‑private partnership. Chang said Queen’s will fund the balance of costs and that the organization is seeking state support: an initial $50 million supplemental request and a further $50 million in the subsequent biennium. Site-development work is underway, the team expects to select an architect within weeks, and—contingent on funding and approvals—hopes to award a construction contract by May 2028 with an estimated two‑year build time. The presentation included an estimated construction cost of about $1,800 per square foot.
Council members broadly welcomed the plan and offered to assist with state budget advocacy. Members cited frequent medevacs and long transport times for critical patients as a rationale for increasing local capacity. Several members praised the inclusion of workforce housing as a way to address recruitment and retention challenges.
Why it matters: The project would materially expand health-care capacity in West Hawaii and could reduce off‑island transfers, but it depends on state funding and private capital commitments. Queen’s indicated it would continue outreach and return with updates as the project progresses.
Next steps: Queen’s will finalize architect selection, continue fundraising and state-budget outreach, and return with further updates. The committee closed the file on Communication 759 by voice vote (eight in favor, one excused).
