Healthcare corp. eyes streamlining measures

Newly installed healthcare corporation chief executive officer Juan N. Babauta said that he will be streamlining many areas to cut unnecessary expenses. However, he could not say for now what these measures are, citing the need for complete data and assessment of all functions and programs under the corporation.

“There [is] going to be some streamlining.but until we know what we got, I cannot say it for now,” he said after Monday’s swearing-in at the Office of the Governor.

Babauta said the $5 million seed money allocated for the corporation will go straight to personnel salaries, which alone amounts to $10 million annually. “We’re spending around $10 million on salaries alone so obviously this is a major concern in terms of budget and revenues. We need money to be able to pay our people and the $5 million will go straight to personnel salaries,” he told Saipan Tribune. The corporation employs about 600 personnel.

Babauta also disclosed that all positions will go through a process of announcement and application to make sure recruits are highly qualified. Appointments for the resident director position will not happen anymore as individuals will now have to apply for the post.

Babauta refused to comment about nurses hired by manpower agencies, pending review of the matter.

There are less than 10 nurses assigned at Rota Health Center who were hired through a manpower agency.

Since Oct. 1, all functions and programs under the Department of Public Health were absorbed by the corporation.

Babauta said that except for the off-island medical referral program, the healthcare corporation will be responsible for all functions, including the federally funded Medicaid program. The off-island medical referral program is now under the Governor’s Office, he said.

This early, the health chief admits finding a “conflict of interest” if the corporation will handle the Medicaid program. He said he will recommend an amendment to the healthcare corporation law to transfer the program outside the corporation.

“Public Law 16-51 is not perfect. There are things we can go back to and recommend legislative changes. One of them is the Medicaid program, which should not belong to the corporation for some reasons,” said Babauta.

The corporation will operate as a business entity and will bill the government for Medicaid clients.