$1M cash transfer to CHC expected today

The Commonwealth Healthcare Corp. will receive this afternoon a portion of the $3 million loan approved by the Marianas Public Land Trust, according to press secretary Angel A. Demapan.

He disclosed that $1 million will be transferred to the corporation after the loan agreement was reviewed and finalized by the Office of the Attorney General yesterday.

“A memorandum of agreement is being finalized between CHC and the central government to provide for a measured disbursement of funds and coordination with the Office of Management and Budget. The MOA will initially provide $1 million in funds to CHC,” said Demapan.

The memorandum of agreement requires that among the first expenditures will be payment for the employees’ insurance that has gone unpaid for seven pay periods.

Demapan said that a letter from Babauta and the OAG was transmitted to the land trust yesterday, requesting the issuance of the funds to the Department of Finance so that the money will be available for disbursement.

“MPLT anticipates being able to have a check issued to CHC by tomorrow afternoon [today],” said Demapan.

According to him, Gov. Benigno R. Fitial met Saturday with members of the corporation, chief executive officer Juan N. Babauta, and Attorney General Edward Buckingham. In that meeting, he quoted the governor as saying that “the administration is here to work with CHC to effectively manage the issues presented. While we do not have unlimited funds, we have the strength and competence to make sound management decisions to bring revenues and expenditures into balance.”

Babauta meantime reported on the changes in the hospital’s accounting and collection system, which has already seen some increased revenue. Further improvements are anticipated within three to six months.

Demapan said the governor was pleased with the report, saying the projections look good and, as a former banker, he looks for signs that an organization is managing its resources and will have the capacity to repay its debts.

MPLT approved last week a $4.58 million loan to the corporation, which includes $1.58 million for the hospital’s electronic health record system. This was in lieu of pending bills that propose a revolving credit line for the corporation. The hospital’s Navy Hill property and its collectibles were offered as collateral for the loan.