DPH removes free shipping benefit for off-island recruits

The Department of Public Health will remove the free shipping benefit for off-island hires from the U.S. mainland due to the government’s current financial shortfall.

DPH Secretary Joseph Kevin Villagomez said the free shipping of goods of up to 3,000 lbs per household is a “luxury” that the department could no longer provide.

The free shipping of goods and free plane tickets for all immediate members of families of new hires were among the benefits approved by DPH to entice more doctors to come to the Commonwealth Health Center. These perks have been enforced since the program’s inception.

Villlagomez disclosed that for now, only the free shipping of goods would be terminated among all existing benefits.

“We opted to remove it because we cannot afford that luxury anymore. It’s quite expensive and with the financial condition of the government, we can’t continue to provide them the free shipping of their goods here,” said Villagomez.

DPH receives an annual appropriation of $32 million which covers everything in the department. The bulk of the amount—or $25 million—goes to hospital operations alone.

The free shipping benefit is provided to all CHC positions hired from the U.S., and not exclusive for physicians.

Esther L. Muna, deputy secretary for hospital administration and acting financial services administrator, disclosed yesterday that last year DPH spent a total of $113,951 for the free shipping of goods of newly hires from different parts in the U.S. alone. This covers about 10 individuals hired for various positions such as physicians, midwives, therapist, and others. An estimated $9,753 is being spent per household, depending on the areas they come from.

DPH, meantime, annually spend about $300,000 in combined free tickets, free shipping of goods, and accommodation to newly hires from the U.S., according to the deputy secretary.

Last year DPH hired 10 individuals from the U.S. of whom more than half already have left the hospital.

Muna believes that suspending or removing this benefit will not have a major impact in the recruitment efforts of the department.

However, she admitted that financially, a substantial amount can be saved by the department which it can use in other important areas in the operation.

“Considering the current financial situation of our government, we have to accept it. There’s not enough funds to continue this benefit and this means that we have to be more creative in our recruitment efforts to entice people to come here. It’s a challenge for us but we have to face the reality,” she told Saipan Tribune yesterday.

Muna believes that DPH is among the “unique and generous” groups that provide free shipping of goods to its recruits.

“But until it is effective, we wouldn’t actually know the impact. We just need to ensure that whoever is interviewing the prospect, they have to know about the decision [on this benefit],” she added.

Despite the delay in the employees’ housing allowance, Villagomez assured that the benefit will be maintained to ensure the stay of personnel.

“We’re not looking at that [terminating or suspending housing perks],” said Villagomez, adding that a hospital employee who has dependents receives $800 monthly housing allowance, while single employees get $600.

The housing privilege is provided to employees who were hired from off-island and there are over 200 personnel who are currently receiving the benefit.

It can be recalled that a number of CHC employees were stopped from receiving their housing perks as a result of declining government revenues and collections last year. This was done as a result of a provision in the law that the allowance, upon availability of funds, could be suspended or terminated by the government. But due to numerous resignations, the housing perk privilege was restored in consideration of the current staffing needs of the hospital.

Villagomez also revealed that due to the financial constraints, no pay hike will be implemented by the department across all levels. “We’re not also touching pay scale.”