Healthcare corp. employees down to 450

From about 600 employees, staffing at the Commonwealth Healthcare Corp. has dropped to 450 in the wake of resignations, retirements, and emergency workforce cuts enforced by the organization.

Because of this, the corporation’s personnel cost is expected to show substantial decline, according to Alvaro Santos, the corporation’s chief financial officer. This week’s total personnel count of 450 is expected to further decline once the emergency reduction in force is completed.

The corporation shells out $800,000 for wages, salaries, and allotments each pay period. Because many exiting employees are still receiving payments for their vacation and terminal leaves, Santos expects the actual “savings” from personnel cost to be realized by the end of May.

He disclosed that the corporation also opted not to fill several vacancies, further reducing the organization’s personnel costs.

The corporation’s $38 million supplemental budget submission early this year contained 599 positions, some of which have been vacant due to funding constraints.

Santos said that all personnel got their paychecks last Friday. The money, he said, was sourced from the CHC’s collection and revenue and a portion left over from the $1 million that was initially released from the $3 million Marianas Public Land Trust loan.

Santos is scheduled to meet today with Office of Budget and Management officials to submit documents on the $500,000 that will be withdrawn from the MPLT loan this week. “We need to provide justification to OMB how the corporation wants to use the $500,000,” he said.

Santos disclosed that there is still $2 million intact from the $3 million MPLT loan, of which $500,000 will be drawn down every two weeks, provided it has justification for accountability purposes.

In justifying the first $500,000 drawdown, Santos recommends releasing at least one month of their personnel’s housing allowance. What remains will be used to partially pay for the hospital’s debts with vendors.

Employees have been waiting for the release of their housing allowance, which has been delayed for five months now. The allowance is given to employee hired from off-island. Unmarried employees get $600 and those with families get $800. The hospital spends about $1.2 million annually to provide housing perks to over 200 personnel.