$7M line of credit for CHC hinges on accountability-lawmakers

A six-member legislative conference committee met for the first time yesterday to try to reach a compromise on a contentious bill giving up to $7 million-instead of the original $11.58 million-line of credit for the Commonwealth Healthcare Corp. to help prevent it from shutting down some units.

But Sen. Ralph Torres (R-Saipan), co-chair of the conference committee from the Senate and House, said the compromise hinges mainly on accountability of CHC funds.

If a conference committee report can be finalized before this afternoon’s House session, the bill could be acted on by the Senate tomorrow and could be on the governor’s desk immediately.

Torres, also the spokesman for the conference committee, made it clear that the conferees all want CHC to have access to funding to run its facility, but CHC should be able to account for every penny it receives and spends.

The original bill provided $11.58 million in line of credit but, after Gov. Benigno R. Fitial placed CHC under a state of emergency, CHC entered into a $4.58 million agreement with the Marianas Public Land Trust.

Lawmakers, however, said CHC still has some $2 million to receive from MPLT as part of the $4.58 million loan deal so they were surprised to hear that CHC could close some of its units.

That $2 million MPLT check for CHC was signed yesterday, so some lawmakers said there’s no reason for CHC to shut down any time soon.

Moreover, once the conference committee comes up with a compromise bill, it is expected to immediately pass the House and Senate for the governor’s action.

Rep. Sylvester Iguel (Cov-Saipan) and Torres, co-chairs of the committee, wrote a joint letter yesterday to CHC chief executive officer Juan N. Babauta, asking him to meet with the panel this morning to discuss House Bill 17-278.

They also asked Babauta to provide eight sets of documents, including detailed financial projections.

Besides Iguel and Torres, the four other conferees are Vice Speaker Felicidad Ogumoro (Cov-Saipan), Rep. Ray Basa (Cov-Saipan), Sen. Jovita Taimanao (Ind-Rota), and Sen. Frank Cruz (R-Tinian).

Basa introduced HB 17-278 in December. It passed the House and was amended by the Senate on Feb. 23.

The governor placed CHC under a state of emergency, and the House had since not acted on the bill until last week. The House rejected the Senate version, leading to the formation of a conference committee to work on a compromise version.

“Unfortunately we’re still here..But we’re putting all our differences aside,” Basa said.

Torres said the $5 million “seed money” given to CHC was what the Fitial administration and the prior leadership at the hospital had wanted. “The Legislature did not reduce that amount that they wanted,” he said.

Cruz, for his part, said a compromise bill will be done soon.

House minority leader Joseph Deleon Guerrero (R-Saipan) said it’s the Office of the Attorney General that may be holding back the release of a $2 million MPLT check because of its ongoing review of CHC’s independent billing contract with an Idaho firm.

He said while he understands the need to review the contract, there is also a need to release the check to CHC so it can continue to properly operate.

Press secretary Angel Demapan, when asked for comment, said this is false.

“What’s holding up the MPLT check is the fact that CHC has yet to satisfy the terms of the memorandum of agreement that was executed prior to the release of the initial check,” Demapan said.

The press secretary also said CHC has yet to communicate with the Fitial administration “any closure plans.”

Deleon Guerrero said that Fitial already placed CHC under a state of emergency, so the governor has all the power to reprogram funds to help prevent a CHC shutdown.

“I wonder what he’s doing about it,” he added.

Deleon Guerrero said another worrisome scenario would be if somebody dies because of lack of blood supply at CHC.

Demapan, however, said it is “unfortunate” that some lawmakers “continue to sing the same song over and over again about reprogramming authority.”