CHC needs $500K for critical needs

The Fitial administration and the Legislature are eyeing unobligated funds from the Commonwealth Development Authority to pay for a portion of the estimated $2.9 million that the Commonwealth Health Center owes its vendors.

In a meeting yesterday attended by both House and Senate members as well as officials from the departments of Public Health and Finance at the Senate chamber, Senate floor leader Pete Reyes (R-Saipan) said that acting governor Eloy S. Inos can reprogram $1 million from CDA interest bonds to help CHC pay off its vendors.

Inos last Thursday declared a state of emergency at CHC after a severe cash shortage resulted in non-payment to vendors of pharmaceutical, medical, dialysis, and food supplies.
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The availability of the $1 million in CDA monies for CHC was confirmed yesterday afternoon by press secretary Angel Demapan.

“Following the issuance of the declaration of a state of emergency, the administration is in the process of initiating communication with CDA to tap what appears to be available funds of a little over $1M. Should this reprogramming of funds happen, CHC will be able to disburse pending payments to vendors and realize the resumption of the delivery of critical health supplies to the CNMI’s healthcare facilities,” he said.

DPH acting secretary Esther Muna said the hospital needs at the soonest possible time $500,000 that will be used for sections that “are in critical need right now like the laboratory and dialysis services.”

While CHC owes $2.9 million, Muña said the $500,000 will go a long way in paying off vendors with the most critical supplies—like reagents for laboratory testing and medicines—and prompt them to again make deliveries to the hospital.

“The state of emergency will definitely help us provide the services that patients need. Not having the lab test is important and it affects everything in the department. We had this forum so hopefully they understand it’s all about cash. It’s not about somebody not doing their job, it’s about cash,” said Muña.

Aside from the $2.9 million in unpaid bills, CHC operations are also hampered by $24 million in collectables each year, said Muña.

Senate President Paul A. Manglona (R-Rota) said he is confident the acting governor will be able to find the money to address the CHC emergency declaration. He said he wants the CHC situation to be resolved as soon as possible as the health and welfare of the public are at stake.

“I know no one wants to go to the emergency room today because in that situation you’ve heard the story that [doctors] wouldn’t know how to diagnose your illness and without the doctor giving you the correct prescription, there’s a chance for disability or death,” he said.

House Speaker Eli D. Cabrera (R-Saipan) said the Legislature and the Fitial administration should find a long-term solution to the CHC crisis.

While he acknowledges that Finance is already “scraping the bottom of the barrel,” he said that giving $500,000 to CHC now will not solve the emergency declaration when CHC again returns a few weeks later to ask for more money to pay its arrears.

Thursday’s emergency declaration marks the second time that the hospital was placed under a state of emergency. The first time was in 2009 and only covered the hospital and the Department of Public Health.

The new declaration also covers the Tinian and Rota health centers and was made because of the “imminent threat of disruption in the delivery of critical healthcare services and its ability to keep the doors open to ‘healthcare facilities’ due to a severe cash shortage.”