Healthcare corporation takes over hospital
Reporter
The implementation of the long-delayed Commonwealth Healthcare Corp. Act of 2008 brought the public health sector not only significant changes but controversies and confusion as well. This after the Office of the Attorney General and Gov. Benigno R. Fitial ruled that upon takeover on Oct. 1, the corporation automatically dissolved all functions of the Department of Public Health.
Prior to the takeover, Lt. Gov. Eloy S. Inos and former Public Health secretary Kevin Villagomez separately stated that the healthcare corporation will be independent of DPH, which will handle preventive programs, most of which are federally funded. This opinion was countered by the governor and Attorney General Edward Buckingham. Villagomez was ousted from his position as a result of the takeover.
Fitial swore into office the new corporation’s board members and selected Juan N. Babauta as the organization’s chief executive officer on Oct. 24.
Since its first day, corporation officials started running the hospital and other related functions through the $5 million seed money appropriated by the Legislature. The discovery of mounting piles of uncoded billings, receivables, and collectibles were disclosed to the public, including discrepancies in vendors’ contracts and other services.
Besides the corporation takeover, the health department was also put on the spot when the administration declared a state of emergency following the discovery that the hospital is short of physicians and lacks important supplies that hamper the delivery of services. From the decade-old billings, receivables, and other obligations, the emergency declaration also shone the spotlight on the serious impact of the hospital service condition on Medicare standards.