University General Health Systems, a Houston-based healthcare system that plans to operate hospitals with the appearance of upscale hotels, said it hopes to open one of its physician-owned acute-care hospitals in Hawai'i to cater to local residents and tourists.

The company said it's premature to detail plans since it is currently doing due-diligence work and must obtain a certificate of need before it can start construction here. But the market is attractive to University General, which is featured in a cover story in the current edition of Modern Healthcare magazine.

"We don't want to get the cart before the horse," said Kimberly Taylor, director of marketing and business development. But "We feel we have a lot to offer."

University General, formed in 2005, recently signed a $1 billion agreement with Charlotte, N.C.-based Alliance Development Group to jointly develop 10 physician-owned hospitals nationwide. Besides Hawai'i, the company also is studying development of its 80-bed hospitals in Denver, Dallas and Phoenix.

Taylor said University General strives to create a "five-star" atmosphere for patients while charging competitive fees. She said the hospitals, while upscale in appearance, are open to everyone and not just wealthy clientele.

The healthcare system's first hospital opened this year in Houston with amenities that include a wireless network, room service, flat-panel televisions in rooms and a lobby resembling a luxury hotel's. The full-service hospital's specialities include weight-loss surgery and the facility, opened in October, already is looking to add operating rooms, Taylor said.

A facility here could serve the local population while also attracting patients from Pacific and Asian countries who would welcome a chance to recuperate in Hawai'i, Taylor said. She said the goal isn't to take away patients from other hospitals, and that there is a possibility other facilities may benefit if there is overflow from University General.

The for-profit healthcare system may have a difficult time entering Hawai'i, which is one of the states where hospitals need to acquire a certificate of need.

According to the state Health Planning and Development Agency's Web site, the certificate process encourages development of facilities and services where they are needed, and quality healthcare at a reasonable cost. It tries to prevent duplication of unnecessary of services.

Nationally, opponents of certificates of need say they help existing hospitals keep competition out of their markets and have been proven to not control healthcare costs.

In its a recent decision, the agency turned down plans for a second hospital on Maui, despite support from Gov. Linda Lingle and others who questioned whether state-subsidized Maui Memorial Medical Center can meet the island's future healthcare needs.

Taylor acknowledged University General may face an uphill battle to get a certificate of need, though the company believes it will enhance and add to Hawai'i's healthcare system rather than subtract from it.

"There are a lot of questions we have to answer," she said.

Reach Greg Wiles at gwiles@honoluluadvertiser.com.