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Law allows DPH to realign funds for medical referral
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Posted on Aug 10 1999
The government yesterday granted authority to Public Health Sec. Joseph Kevin Villagomez to tap available resources from the department to fund anticipated shortfall in the medical referral program.
Acting Gov. Jesus R. Sablan signed into law a measure passed by the Legislature last month which provides for the reprogramming authority to the secretary in order to prevent a budget deficit under the program for the next two months or until the end of Fiscal 1999 in Sept. 30.
“This legislation would assist the Department of Public Health to settle outstanding and projected Medical Referral Program’s financial obligations,” he said in signing Public Law 11-91.
There is no information, however, how much the shortfall would amount, although DPH officials have said the department does not have enough money to address its immediate needs.
From a high of over $8 million approved budget in FY 1998, the program’s budget under this year’s spending package was slashed to a $4.2 million, or a drop of about 51 percent, due to the financial crisis plaguing the Northern Marianas.
Heavily affected was the appropriation allotted for professional services or doctors fees, which received $7.1 million in FY 1997 and 1998. Funding for this purpose was reduced to $3 million.
The CNMI has three medical referral office — in Hawaii, Guam and Manila, Philippines. Of the three, Hawaii receives the most requests, assisting an average of some 50 patients a month.
The program is fully funded by the local government. Benefits include subsidy on transportation fare, subsistence and lodging expenses and a certain percentage of the medical cost incurred.
The new law was sponsored by Rep. Heinz S. Hofschneider.
