The new owner of the St. Francis Medical Center plans to pump in at least $32 million of improvements over the next five years as part of plans to nurse the hospitals back to financial health while pledging to set new standards for patient care in Hawai'i.

Hawaii Medical Center LLC closed its $46.5 million purchase of St. Francis' two hospitals on Sunday, ending months of effort to find a new owner for the money-losing facilities. With its purchase, the medical centers become the first for-profit and physician-owned hospitals in the state.

The acquisition includes a name change for the two St. Francis facilities. The 240-bed hospital in Liliha will be known as Hawaii Medical Center East and the 'Ewa location as Hawaii Medical Center West.

"We intend to be very good citizens of the community," said Dr. Badr Idbeis, Hawaii Medical Center chairman, talking about the company's plans and its profit-oriented status.

"Our patients come first and foremost. If profit comes, that's wonderful."

Idbeis said the hospitals will undergo a renovation program aimed at upgrading them as state-of-the-art facilities that offer some of the state's best patient care. The strategy centers on having physicians more involved in healthcare delivery and ownership in local hospitals by being part-owners. It also calls for high-standards of patient care, including the gradual increase in the number of nurses and an electronic record-keeping system that will reduce potential for errors.

Idbeis said $7 million to $8 million of improvements will be made this year with $5 million annually of privately funded renovation and equipment upgrades to be made during the following five years.

"It will set a new standard for patient care in Hawai'i," Idbeis said.

Hawaii Medical Center is made up of Idbeis' Cardiovascular Hospitals of America LLC and Hawaii Physician Group LLC, a group of more than 130 local physicians. Cardiovascular Hospitals of America, based in Wichita, Kan., is developing seven general-service hospitals on the Mainland and in the Philippines. Most of these will have less than 100 beds. Idbeis said Hawaii Medical Center's hospitals are the biggest his company operates.

Idbeis previously helped develop three physician-owned hospitals, two of which specialize in heart and spinal medicine. Idbeis, while acknowledging a controversy over physician-owned specialty hospitals skimming patients from general service hospitals, said he is intent on maintaining St. Francis' broad service offering into the future. None of his five-year-old company's facilities are specialty hospitals.

Meanwhile, Cardiovascular Hospitals of America is changing its name to CHA LLC to distance itself from an image as a specialty hospital operator.

Day-to-day management of the O'ahu hospitals will fall to Dr. Danelo Canete, who serves as Hawaii Medical Center's chief executive officer. Dr. Patricia Blanchette has been appointed as chief medical officer of Hawaii Medical Center East while Dr. Genevieve Ley is serving in a similar capacity at Hawaii Medical Center West.

The hospitals, which were founded 80 years ago by the Sisters of the Order of St. Francis, will no longer be affiliated with the Roman Catholic Church. The order will have a seat on Hawaii Medical Center's 15-member board.

St. Francis Healthcare System, which sold the hospitals and is providing seller financing for the transaction, plans to shift its emphasis to the needs of the state's growing senior population through programs such as home care, adult day services and hospice.