Funding secured for West Hawai‘i outpatient care center with passage of state budget

The passage of the state budget includes secured funding of $50 million for the Outpatient Care Center as part of a private-public partnership to expand health care services in West Hawai‘i.

The funding, finalized with passage of the state budget, represents a significant investment in expanding access to essential outpatient services and strengthening the health care system for residents of West Hawaiʻi.

In December 2025, Gov. Josh Green announced his commitment to the project and his intention to include funds in his executive budget that would go toward the planning, design and prep work of the facility.

“I have long supported efforts to expand health care capacity in West Hawaiʻi, and I’m proud the Legislature recognized the importance of maintaining this project in the state budget,” Green said. “This investment is an important step toward building a stronger, more resilient health care system that meets the growing needs of the community.”

On Monday, May 11, leaders from West Hawaii Region of Hawaiʻi Health Systems Corporation, which encompasses Kona Community Hospital, expressed appreciation to Green, as well as the Hawai‘i Island delegation and members of the House Finance Committee and Senate Ways and Means Committee, for their support in funding the facility.

“This investment is a powerful commitment to the people oh Hawai‘i island,” said Clayton McGhan, CEO of the West Hawaii Region, HHSC. “It allows us to expand outpatient capacity and ensure that more residents can receive timely, high‑quality care closer to home.”

The new medical facility is meant to be a companion to the new $400 to $500 million hospital that Queen’s plans to build off of Queen Ka‘ahumanu Highway near Costco, Big Island Now previously reported. The proposed 50,000-square-foot medical facility will house doctors’ offices and outpatient services.

As part of the collaboration, Queen’s will donate approximately three to five acres of land to the future site of the center.

“By pairing state investment with private development, we are maximizing the impact of public funds and building a more resilient health care system for our community,” Jason Chang, President and CEO of The Queen’s Health Systems, said. “This project will improve access, enhance health outcomes, and support the long-term well-being of our West Hawai‘i residents. We are incredibly thankful to area legislators, Governor Green, and the entire legislature for their investment in the health care of our state.”

Hawai‘i Island Sen. Dru Kanuha said this investment creates a catalyst for the health care infrastructure needed to meet the growing demands of the region.

For years, Hawai‘i Island Rep. Nicole Lowen said, she has fought to improve health care in West Hawai‘i.

“I have heard from district residents about the lack of specialists, long travel times, and limited access to essential services, Lowen said. “This funding is about more than a building; it is the anchor that will lead to a new hospital in North Kona, and will ensure the continued improvement of our health care capacity and services well into the future.”

In a rural community like West Hawaiʻi,” Rep. Kirstin Kahaloa said, access to health care is not guaranteed, it is something we have to intentionally invest in and fight for.

“This funding for the Outpatient Care Center is a critical step toward ensuring our families can receive timely, high-quality care closer to home,” the representative added. “It reflects our commitment to health equity and to meeting our community where they are.”