St. Francis seeks to retake sold Oahu hospitals

AP News
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Posted: Dec 15, 2009 2:36 PM

St. Francis Healthcare System of Hawaii is seeking to regain control of the two Oahu hospitals it sold to Hawaii Medical Center nearly three years ago.

St. Francis Healthcare filed a reorganization plan in U.S. Bankruptcy Court on Monday.

Jerry Correa Jr. is St. Francis Healthcare's chief administrative officer. He says it's trying to do what's best for the community.

Hawaii Medical Center purchased the Liliha and Ewa hospitals for nearly $68 million in January 2007.

HMC, which owes St. Francis Healthcare $46 million in loans, filed for bankruptcy in August 2008 after suffering operating losses of more than $21 million in the wake of the purchase.

Hawaii Medical Center and unsecured creditors have also filed their own reorganization plans.