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Queen’s Health outlines $560M hospital and $100M outpatient center for West Hawaii, including workforce housing

Hawaii County Council Communications Reports & Council Oversight Committee · March 17, 2026
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Summary

Queen’s Health System outlined plans for a new West Hawaii hospital (~$560M), a 50,000+ sq. ft. outpatient center (~$100M), and workforce housing to retain staff; the county committee expressed support and closed the file on the report.

Jason Chang, president and CEO of the Queen’s Health System, and Clayton McGahn, West Hawaii regional chief executive officer, presented updates on plans for a new West Hawaii hospital and an adjacent outpatient care center.

Chang said the hospital planning is guided by utilization studies and that Queen’s expects to fund much of the project while seeking state and private support; he estimated the hospital cost at about $560 million. “Ultimately, Queen’s is going to fund the balance of this project,” Chang said, and added the team is two weeks from selecting an architect and hopes to break ground within the next 12 months after site development and approvals.

McGahn described the outpatient care center plan and workforce challenges in West Hawaii. He said ECG modeling estimated the outpatient project at roughly $100 million and that the outpatient building would be more than 50,000 square feet to accommodate physicians and specialty services. McGahn said West Hawaii has provider shortages—“we needed also specialists… we had a shortage of about 25 providers on this side of the island” —and that 40% of inpatient and 62% of outpatient patients currently seek care off‑island, driving the effort to keep more care local.

Both presenters said workforce housing would be part of the campus plan to help recruit and retain staff. Council members expressed support for the site selection and for state funding requests; the committee voted to close the file on the communication.