US Labor probes salary delays at CHC

The ongoing financial crisis at the Commonwealth Health Center and its fallout has caught the attention of federal labor authorities, prompting a visit to the hospital and interviews with its employees.

Saipan Tribune learned that federal investigator Dean Tenorio from the U.S. Department of Labor’s Wage and Hour Division made a surprise visit to the hospital on Friday and asked employees about issues surrounding the hospital.

Staffers, who agreed to speak on condition of anonymity, shared with Saipan Tribune that most of the questions focused on their delayed salaries and housing benefits, among other issues.

The U.S. Department of Labor in San Francisco confirmed yesterday the ongoing probe against the Commonwealth Healthcare Corp., which operates the sole public hospital in the CNMI.

“Yes, we are able to confirm that the department’s Wage and Hour Division is conducting an investigation,” Deanne Amaden, regional director of public affairs, told Saipan Tribune.

She declined, however, to further comment, saying it is the agency’s policy to wait until an investigation has been fully concluded before giving out any further information. This, she said, ensures that the agency gathers pertinent information and allows for due process.

Amaden also refused to disclose if the investigation was prompted by specific complaints of hospital employees. She explained that any probe may be the result of an employee complaint, a complaint received by a third party, or because of planned inquiries or investigations to assess compliance with federal labor laws administered by the Labor Department.

The continued lack of funds for the hospital has resulted in delays in the salaries of mostly non-essential personnel, including the issuance of their housing perks, which is almost four months behind by next week.

Saipan Tribune learned that some hospital personnel, including some nurses in the outpatient clinic, failed to get their wages on time last Friday. Sources revealed that this was not the first time this happened since hospital operation was taken over by the healthcare corporation in October last year.

Employees said their housing allowance checks have been delayed since December and there have been no assurances as to when the checks will be issued, if at all. The housing benefit checks are usually issued on the first week of each month. It amounts to $600 for unmarried employees and $800 for those with families. This benefit was created to attract off-island hires to come to Saipan.

Many employees said they feel more demoralized with the current situation of the hospital.

“As much as we want to understand the financial situation of the corporation and the hospital, we can’t deny the fact that it is truly affecting our families. If this situation continues, I don’t think we can still stay and serve the people as much as we want to,” one employee said.

Some employees said that they cannot blame chief executive officer Juan N. Babauta for these issues as he just inherited the problems from previous hospital administrations.

The corporation has 600 employees on three islands. The Legislature appropriated it only $5 million in seed capital.

Besides the delayed wages and housing allowance, some employees’ health insurance coverage may also be terminated following disclosure that their premiums for four pay periods have not been remitted to insurance carriers.

Saipan Tribune learned that many employees who are enrolled in the 401K retirement plan and members of the Commonwealth credit union are also affected as their payments have also not been remitted in a timely manner, affecting their loans or accounts.

Budget constraints have also resulted in other cuts at the hospital, including repairs and maintenance of hospital equipment and coverage of areas that need to be cleaned by an outside contractor.