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Hospital assures new payment for monthly utility use
Citing a boost in its collections, the Commonwealth Healthcare Corp. assured the public that utility services will not be uninterrupted at the hospital come July, which is the scheduled date eyed by the utilities company to cut power in selected non-essential services if the hospital’s monthly consumption is not paid in full.
In fact, corporation CEO Esther L. Muna disclosed that a check payment amounting to $400,000 is now being readied for the Commonwealth Utilities Corp.
Muna
A few weeks ago, CHCC made payment of about the same amount for its power and water consumption for the month of April. A new check is ready to cover for May’s consumption.
“The $400,000 is based on our consumption for the month. And this doesn’t include the arrears which is still sitting there,” Muna said, alluding to the unpaid utility obligations for many years.
Based on CUC records as of May 31, 2014, CHCC’s debt totals $12.521 million. Of this amount, $485,127 past 30 days; $530,458.39 aged 30-59 days; $531,501.39 past 60-89 days; $475,196.59 past 90-119 days; and $10,498,823.39 past over 120 days.
On these outstanding arrears, the CEO said that newly hired CFO Jack Taisague was tasked to work a plan with CUC management. A payment scheme, she added, will be part of the business plan expected from the CFO.
According to the CEO, the anticipated new payment to CUC was sourced from hospital collections, which Muna described as beefing up.
Early this month, CHCC received from the Marianas Public Land Trust $3 million representing the extended line of credit for one year.
Muna disclosed that of this $3 million, there remains about $1.5 million untouched, which the corporation reserves for the hospital’s immediate needs.
Half of the MPLT monies, it was disclosed, were utilized in paying portion of the hospital’s obligations to vendors. Muna revealed that for one specific vendor alone, the corporation was able to pay close to $1 million using the line of credit funds. The other portion was shared with other vendors whom the CEO revealed is now receiving timely payment—little by little—from the corporation.
