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News Release

October 18, 2006
HMSA announces $50 million initiative to transform patient care

Steve Van Ribbink
(808) 948-6275

The Hawaii Medical Service Association (HMSA), Hawaii’s largest health plan, announced today the $50 million HMSA Initiative for Innovation and Quality, the largest outlay for this type of program in HMSA’s history. The HMSA Initiative for Innovation and Quality (HI-IQ) will transform health care in Hawaii by funding innovative advancements by Hawaii hospitals and providing assistance in acquiring Electronic Medical Records (EMR) systems for Hawaii physicians.

The HMSA Initiative for Innovation and Quality has two parts. $30 million ($10 million a year over the next three years) will fund unique projects proposed by HMSA participating acute care hospitals. "Each hospital will have the opportunity to propose projects that best serve their patients’ needs," said Robert P. Hiam, HMSA president and CEO. "We will look for significant ideas to improve patient care and outcomes."

The second component of the HMSA Initiative for Innovation and Quality is $20 million to assist independent participating physicians statewide in acquiring EMR systems. "It is our vision that this will transform the way hundreds, or perhaps thousands, of local physicians provide care for their patients," Hiam said. "Electronic medical records will dramatically enhance patient care, reduce errors, minimize duplication, and provide true efficiencies in the delivery of care," he added.

"As we learned from Hurricane Katrina, EMRs are vital when a disaster strikes because they provide continued access to medical information for people in active treatment, whether paper files are lost or destroyed, or people are relocated."

"The cost of this initiative will not come from member or employer monthly dues," Hiam said. "It will be funded by a combination of investment income and reserves."

HMSA is a nonprofit, mutual benefit association founded in Hawaii in 1938. It is governed by a community board of directors that serves without compensation and includes representatives from health care, business, labor, government, education, clergy, and the community at large. HMSA is a member of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield plans. Nationally, HMSA and 37 other Blue Cross and Blue Shield plans provide worldwide coverage to more than 94 million members.

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