Bay Clinic, Inc. and West Hawaiʻi Community Health Center have entered into a Memorandum of Agreement to consolidate and merge its operation.

The yet to be named, surviving entity would serve 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.

The merger, which will take effect on July 1, 2022, 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. 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.

The West Hawaiʻi 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.

In a press release Bay Clinic CEO Kimo Alameda said, “In thinking about how to unify our island communities and enhance our mission, I approached West Hawaiʻi 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.  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.”

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.

A new Board of Directors led by Mike Matsukawa and Haidee Abe will be formed with equal representation from both Bay Clinic and West Hawaiʻi 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.

 

Photo credit: Bay Clinic