Hawaiʻi Medical Service Association, Hawaiʻi Pacific Health move to transform Hawaiʻi health care

Hawaiʻi Medical Service Association and Hawaiʻi Pacific Health will partner together to create a more connected, coordinated healthcare system throughout the islands.

The boards of both companies authorized the two health care organizations to move forward and take the next step by submitting their proposal to appropriate state and federal agencies for review.

This marks the first step in the public review process.

Hawaiʻi Medical Service Association and Hawaiʻi Pacific Health would establish a new nonprofit parent organization, One Health Hawai‘i under the proposal, aligning strategy, strengthening collaboration and improving coordination throughout Hawaiʻi’s health care system.

The partnership — if approved — would advance shared goals of making high-quality health care more affordable, expanding access statewide and fostering long-term financial sustainability for the people of Hawai‘i, while supporting providers, health organizations and communities throughout the islands.

One Health Hawai‘i would be jointly led by co-Chief Executive Officers Dr. Mark Mugiishi, current Hawaiʻi Medical Service Association chief executive officer, and Ray Vara, sitting Hawaiʻi Pacific Health president and chief executive officer, as well as governed by a newly created board of directors.

Despite Hawai‘i’s reputation as one of the healthiest states in the nation, the state’s families face urgent health care challenges — increasing costs, limited access to care and provider shortages statewide.

“We need a new and innovative approach to health care now,” said Mugiishi in a release about the proposed partnership. “The headwinds for affordable health care are strong, but we have the opportunity to create a more resilient and unified health care system that will benefit Hawaiʻi for generations to come, and we will do it with a commitment to an open system of care where people can still choose the providers and facilities they trust.”

Making health care more affordable: Lowering costs and improving care

Hawaiʻi’s increasing health care costs put pressure on families, employers and providers. This proposal addresses the drivers of unaffordable health care by simplifying delivery, reducing inefficiencies and supporting earlier interventions.

Key efforts include:

• Minimizing administrative burden, such as duplicative paperwork, tests and authorizations.
• Improving chronic condition management through better coordination, targeted outreach and community-based support.
• Shifting appropriate services to convenient, lower-cost settings, such as ambulatory surgery centers, rural clinics and home-based care.
• Eliminating inefficiencies to help people receive health care earlier to ensure they are better supported.

Strengthening health care access throughout Hawai‘i

Access to timely, high-quality health care varies throughout the islands, especially in rural areas. By aligning care teams, systems and resources, the proposal strengthens Hawaiʻi’s overall health care system so people can get the right care in the right place without unnecessary delays.

This includes:

• Investing in affordable, high-quality care on neighbor islands to reduce wait times and off-island travel.
• Supporting community providers with stronger care delivery tools, resources and coordinated support.
• Streamlining administrative processes — such as documentation, scheduling and prior authorizations — to reduce delays and free up more provider time for patients.

Building health through community reinvestment

This proposal provides opportunities for Hawaiʻi Medical Service Association and Hawaiʻi Pacific Health to further reinvest directly in everyday support that helps people stay healthy by focusing on essentials — such as housing, access to food and practical financial guidance.

When families have these foundations, they can avoid costly and acute emergency and inpatient care. Providers can focus on preventive care as unnecessary use declines and coverage becomes more affordable. This will build a stronger, more resilient future for Hawaiʻi.

Healthier Hawai‘i Together public information initiative

Hawaiʻi Medical Service Association and Hawaiʻi Pacific Health are launching Healthier Hawai‘i Together — a statewide effort to explain the proposal, why it matters and how it will strengthen health care for families and communities — to ensure clear, accessible information throughout the regulatory review process.

The Healthier Hawai‘i Together website will serve as a resource for Hawaiʻi Medical Service Association members, Hawaiʻi Pacific Health patients, healthcare partners and professionals as well as Hawaiʻi residents to understand the proposal.

Vara said these efforts will generate savings that can be reinvested into Hawai‘i’s healthcare system, supporting programs and services that strengthen health statewide — early childhood development and kindergarten through high school education, affordable housing, local food sourcing and workforce development — “truly creating healthier communities.”

“This proposal is about addressing affordability and ensuring families can access high-quality care where and when they need it,” added Vara in the release. “By aligning strategy and working together, we can improve coordination, enhance the patient experience and reduce unnecessary administrative health care costs.”