Healthcare corporation hires Santos as new CFAO

The Commonwealth Healthcare Corp. has hired Alvaro Santos as its new chief financial administrative officer, a position vacated by former acting deputy for hospital administration Esther Muña who resigned in December.

Santos confirmed with Saipan Tribune yesterday that his contract is for one year and that he formally started on Monday, Feb. 27.

A retiree and a board member of the Marianas Public Land Trust, Santos acknowledged the deep financial crisis besetting the corporation, which only has a $5-million budget this year for personnel and operations, but said he is confident that he will meet the expectations of the job.

As CFAO, Santos is now a key member of the corporation’s six-member management team, which directly reports to chief executive officer Juan N. Babauta.

Santos said that he was hired to help the corporation set up a financial system that will aid the agency in becoming self-sufficient and effective in its management and operation. He said the corporation’s financial setup is at a “critical stage” and must be given high priority because it is a determining factor in the corporation’s success.

Santos admitted that his initial review of the corporation’s financial records was sobering. With just $5 million allocated for its 600 personnel and operations, he said the board needs to “prioritize.”

He also emphasized the need to boost the hospital’s collection and the implementation of more aggressive efforts to generate revenue for the corporation. He also aims to eliminate “unnecessary costs” but did not elaborate.

Santos said that pursuant to the law that created the corporation, it clearly spells out the need for the agency to have its own financial management system so it could fully break away from the Department of Finance or the central government. He said the corporation is still at a “critical transition period,” which is why it is still being assisted by the central government.

Once a new financial management system is in place, Santos said he needs to train personnel to help maintain it.

Last Friday, not all of the corporation’s personnel got their paychecks on time, mainly because of cash flow problems, but Santos said that all paychecks have already been released yesterday.

He refused to comment on other issues relating to finances such as delayed housing, unremitted health insurance premium, credit union members’ payment and contributions of employees to private retirement plan. But he vowed to address those issues at a later date.