Babauta: ICS contract no sweetheart deal

While admitting that the International Consulting Services LLC contract was executed outside the Commonwealth Health Center’s emergency declaration, Commonwealth Healthcare Corp. chief executive officer Juan N. Babauta maintains that it wasn’t a “sweetheart deal.”

In a news briefing yesterday, he said the contact was done “nice and clean” and aligned with the healthcare corporation’s own policies and regulations.

Babauta also said that ICS’ contract was presented, discussed, and consulted with Gov. Benigno R. Fitial, corporation legal counsel James Kearney, as well as representatives from Medicare and Medicaid during a conference in San Francisco in February.

Despite the existence of Public Law 16-51 and the establishment of the corporation’s own personnel and procurement regulations in January 2012, Babauta said that Attorney General Edward Buckingham still saw otherwise.

Granted that there is “deficiency” in the contract, as Buckingham claims, Babauta believes this could have easily been corrected during the emergency declaration when all laws and regulations are suspended or through a simple internal correction.

“We consider the ICS contract as a work in progress. If the AG still has problems with it, he can still sign it either during emergency state or through regular process internally. We can do this because the corporation has its own personnel and procurement policies and regulations. That’s why we we’re able to implement the emergency reduction in force,” he said.

Babauta said if he, as CEO, has the authority to hire and fire people, it is the same power that allows him to sign contracts—with or without the review of the attorney general.

Governor’s intervention

Fitial met with Babauta and key management officials as early as 7am yesterday to discuss the condition of the hospital, according to Babauta.

He said he asked the governor to again declare a state of emergency for CHC. This, he said, is now under the governor’s review. “We’re very hopeful and optimistic because the governor understands and is fully aware of the serious condition of the hospital. He’s looking into the extension of the emergency declaration,” he said.

The governor, he said, is expected to “mediate” between him and Buckingham to come to the table. When and where that will happen, Babauta doesn’t know.

Buckingham ordered Babauta to stop the ICS contract within 45 days. But Babauta confirmed that the contract is ongoing and is hopeful that any “problems” the AG may have with the contract will be fixed with the expected emergency re-declaration.