Hawaii Legislation Creates State Medical Monopoly

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BY FORMER SEN. FRED HEMMINGS – Governor Neil Abercrombie recently signed legislation that will eventually imperil Hawaii’s medical institutions. Private and venerable medical hospitals such as Queens, Straub, Castles and others now will pay a fee to government so Hawaii can receive reimbursements from borrowed Federal money.

It is another government Ponzi scheme that helps underwrite the takeover of the medical industry.


To add insult to injury, the Federal Government budget under the current regime is 40% borrowed, if continued America will go bankrupt. A state monopoly is like all monopolies. Monopolies cost more and do less and there is no choice for consumers.

Hawaii’s beleaguered taxpayers’ pay numerous times for State hospitals through high insurance rates, co pays and huge tax subsidies.

The state is also guilty of anti-trust. When a hui of doctors wanted to put in a private hospital on Maui the state would not grant them a license through the “certificate of need” process. That is anti-trust because the state was protecting its own monopoly hospital, Maui Memorial. Maui Memorial receives tax payer’s subsidies yearly.

I agree that all our citizens should have access to health care but not through a bankrupting government monopoly. Private hospitals beware; the state will put you out of business.

Doctors beware you will eventually be in a system that will operate with government reimbursements only. There are solutions to medical industry woes and it is not a government monopoly.


Fred Hemmings is a Republican who served in the state House and Senate and is a candidate for state Senate in 2012. He also was named as a world champion surfer and has authored books about the sport.