‘DPH will remain distinct from healthcare corp.’

The Department of Public Health, which is not included in this fiscal year’s budget, will remain an independent entity from the newly established Commonwealth Healthcare Corporation, according to acting governor Eloy S. Inos yesterday.

He said that Joseph Kevin Villagomez will keep his post as DPH secretary and will now be directly under the Executive Branch.

The healthcare corporation will be headed by a chief executive officer who will be selected by its board of directors. The board in turn will run the corporation as a private business entity.

Inos explained that DPH was not allocated an operational budget this year since it will be left with only those programs dealing with preventive care. Most of these programs will be funded by federal agencies, he added.

The budget law for fiscal year 2012 allocates $5 million to the healthcare corporation as seed money for its operation. The corporation will assume the functions and duties of the Commonwealth Health Center, Rota and Tinian health centers, Women’s Clinic, Children’s Clinic, Community Guidance Center, inter-island medical referral services, and other clinics, and all other operations and function of DPH as may be transferred to the corporation by the health secretary.

Inos said the state-sponsored Medicaid program and medical referrals outside the CNMI will now be administered by DPH, along with other preventive care programs. The government has a 50-50 percent stake in the Medicaid program.

“DPH will function entirely separate from the new healthcare corporation and will remain part of the Executive Branch. These two organizations are separate and distinct [from one another],” he told Saipan Tribune.

Inos said this “separation” is clearly indicated in the law that created the corporation, Public Law 16-51, which was authored by Sen. Ralph Torres (R-Saipan), chairman of the Senate Committee on Health and Education.

Torres was off-island yesterday and was not immediately available for comments. Committee vice chair Sen. Pete Reyes (R-Saipan) declined to comment on the issue.

Inos said the Fitial administration is still “reconciling its records” to come up with the funds it may need to pay for DPH’s other expenses.

“We’re trying to reconcile that right now…but DPH will handle mostly federally funded programs,” he said, adding that about 90 percent of DPH’s preventive type activities get federal support.

Inos assured, though, that the $5-million budget for the corporation will not be touched to augment DPH operations.

Villagomez, at the opening of the new hemodialysis center last week, confirmed with Saipan Tribune that he will keep his position as health secretary and will not be subject to any policy of the corporation and its board. He refused to disclose other details until after he meets with Gov. Benigno R. Fitial, who is in China for an official trip.

In an earlier interview, Villagomez said that about 600 CHC personnel and the Rota and Tinian clinics will be transferred to the corporation.