Bay Clinic, Inc. and West Hawaii Community Health Center have entered into a Memorandum of Agreement to consolidate and merge its operations to enhance the delivery of quality healthcare to all Hawaii Island residents.
The yet to be named, surviving entity would service 40,000 patients and provide medical, dental, pharmacy, behavior health services, and enabling services at locations in Hilo, Keaau, Pahoa, Kau, Oceanview, Miloli’i, Kealakekua, Kealakehe, Waikoloa and Kailua-Kona.
“In thinking about how to unify our island communities and enhance our mission, I approached West Hawaii Community Health Center with the idea of merging our operations to increase patient access to qualified healthcare providers and improve the quality of patient care island-wide,” said Bay Clinic CEO Kimo Alameda. “West Hawaii Community Health Center CEO Richard Taaffe had the same mission in mind and we began to talk story on how to make it work.”
“As we conducted our due diligence, it became obvious that merging the two operations would have a positive effect on patient health care island-wide. Kimo and I immediately saw a more comprehensive scope of care, increased access to providers, greater economies of scale and the opportunity to add new clinic locations as immediate benefits to a merger. It just made sense,” said Richard Taaffe.
Due Diligence
That’s where the real work began.
Management teams and consultants conducted a due diligence investigation into the risks and opportunities of a merger in the areas of leadership, management, finances, manpower, IT, facilities, regulatory approvals, compliance and liabilities. The Chief Financial Officers and Chief Operations Officers of both organizations met and confirmed that a consolidation was feasible. A Steering Committee was formed to initiate relationship building, align the missions and synergies and set the foundation for collaboration.
The West Hawaii Community Health Center Board of Directors led by Mike Matsukawa and the Bay Clinic Board of Directors led by Haidee Abe met separately in late September and approved the merger of the two entities.
What’s Next?
The effective date of the merger is the close of Bay Clinic’s fiscal year on July 1, 2022.
The merger will be a phased consolidation process to insure success and a smooth transition. An integration of services and personnel including Finance, IT and HR have begun so that both operations are fully aligned by July 1, 2022. Both entities will keep their names and identities with Kimo Alameda and Richard Taaffe continuing as CEOs of their respective organizations until the merger is finalized.
Effective July 1, 2022, Bay Clinic, Inc. as a non-profit will cease operations and be dissolved with West Hawaii Community Health Center as the surviving entity.
A new Board of Directors led by Mike Matsukawa and Haidee Abe will be formed with equal representation from both Bay Clinic and West Hawaii Community Health Center with the newly constituted board taking effect on July 1.
Prior to July 1, the parties will formulate board related materials, committee assignments, organizational charts and matters pertinent to governance. The new Board of Directors will decide on a name for the new entity that unifies the brand.
“We are excited to begin this new journey and to work together. Both organizations are about the same size in sites and employ- ees. We have begun the process to build trust internally with staff and employees and most importantly with the community,” said West Hawaii Community Health Center Board Chair Mike Matsukawa.
“We have the same mission to enhance the quality of life for the community with improved health care access. Both entities truly understand the unique characteristics of their local communities. It’s a win, win for Hawaii Island,” said Bay Clinic Board Chair Haidee Abe.
About Bay Clinic
Founded in 1983, Bay Clinic is the largest non-profit community health center on Hawai’i Island. We employ approximately 206 health care professionals and support staff, which is about $13 million in annual salaries and wages for East Hawai’i residents. We are a significant contributor to our local economy, workforce infrastructure, and access to affordable and comprehensive health-care on Hawai’i Island. Today, we serve 22,096 East Hawai’i residents with approximately 80,000 visits annually.
About West Hawaii Community Health Center
West Hawaii Community Health Center was founded in 2005 by a group of dedicated community members who believed all people should have access to quality health. Starting with 6 employees 16 years ago, today West Hawaii Community Health Center has grown to 200+ employees serving nearly 25% of the residents of West Hawaii, with an operating budget of $25 mil- lion. Since day one, our mission has remained the same to provide quality, comprehensive, and integrated health care services accessible to all, regardless of their ability to pay.