Healthcare’s budget woes stall processing of personnel contracts

Members of the Commonwealth Healthcare Corp. board of directors disclosed yesterday that the processing of personnel contracts-for both new and existing employees-is being stalled, resulting in the delay of important healthcare services.

Anthony Raho, the hospital’s inpatient pharmacist and corporation board member, reported that despite the organization’s active efforts to recruit personnel, the processing stopped just before the actual signing of contracts due to the lack of “certified” budget to pay for salaries.

“We’re attempting to hire, but it seems there is no movement [in the processing of contracts] because of our budget. How are we going to move things along on personnel if we don’t have a budget?” Raho told the board in yesterday’s meeting.

The hospital’s director for Medical Affairs, Dr. Michael Deary, said that the delay in the movement of contract signing is also evident in the situation of the Tinian Health Center, which recently lost its only physician, Dr. Steve Lebamoff. Deary said he has already told the budget office that the contract, if approved and accepted, is not a new hire but a replacement that is already included in the existing budget.

Another board member, Anthony Aguon, said that the delay in the processing of contracts is affecting both new and existing personnel at the Tinian center. “I wonder if we can do something to speed up the process now,” he asked the board.

Deary, Raho, and Aguon expressed frustration over the adverse effect of not having a budget to work with even though the fiscal year already started in October. The corporation was appropriated only $5 million in seed money for its personnel and operations this year. In December, the board submitted to the Legislature a $38.5 million supplemental budget request, with the main objective of tapping some $18 million in “identified” resources for CHC that was never actually appropriated under the 2012 budget law. The Legislature has yet to act on this request.

Chief executive officer Juan N. Babauta told the board yesterday that it’s still the corporation’s goal to get that $18 million for the hospital.

But because of the current fiscal state of the government where revenues and collections continue to drop, some board members recommended to portion out the budget-without the anticipated $18 million “added” revenue.

“I think it’s better to assume that we will not get that $18 million,” suggested board member Roy Rios, “so the corporation can start moving forward.”

Acting board chair Pedro Dela Cruz instructed Babauta to request a meeting with both House and Senate leaders to present the budget condition of the corporation. One of the things he wants answered, he said, is if the Legislature will appropriate the $18 million for CHC.