- Associated Press - Wednesday, May 20, 2015

HONOLULU (AP) - Hawaii’s state-funded hospital system is cutting almost 90 jobs and reducing some services at three east Big Island facilities in an effort to bridge a $7 million deficit for the coming fiscal year.

Hawaii News Now reports (https://bit.ly/1AeP47i ) the three hospitals make up the east region of the Hawaii Health Systems Corporation, which is grappling with a total shortfall of $50 million.

Increased costs and low rates of reimbursement from a growing, rural population have contributed to the reductions. About 75 percent of hospital payments are from Medicare and Medicaid, and don’t cover the cost of care.

East Hawaii Regional Board Chair Gary Yoshiyama said cutbacks and layoffs are the last option to cover the deficit.

The cuts will impact Hilo Medical Center, Ka’u Hospital and Hale Ho’ola Hamakua.

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Information from: KGMB-TV, https://www.hawaiinewsnow.com/

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