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CHCC business plan identifies revenue streams
$9M annual shortfall on operations; financial statement to be submitted soon
In order to meet lawmakers’ expectations and increase the standard of hospital care, the Commonwealth Healthcare Corp. is working on identifying different revenue streams that will be outlined in a business plan that is close to finishing, according to Esther Muña, chief executive officer for CHCC.
Last February, the Legislature asked Muña to shed light on CHCC’s status, but she said at that time the business plan was already in the review process.
In order for CHCC to address its costs, Muña said the business plan includes different revenue streams CHCC’s financial status, and its proposed plan to bail itself out of its financial morass.
Muña presented the hospital’s costs in fiscal years 2011 to 2014 at the Saipan Chamber of Commerce monthly meeting yesterday at Saipan World Resort.
In response to Chamber president Alex Sablan’s query on their current annual shortfall, Muña said: “We are working on our financial statements first and will be published soon as required by law, but right now it is showing $9 million in annual shortfall. We are working on it. Right now we have money in the bank; however, that will be used to pay the Marianas Public Land Trust,” Muña said.
She declined to furnish details on the $9 million annual shortfall, saying the upcoming financial statements and business plan will go into that.
Muña did disclose some revenue streams that the corporation proposes to do.
“We are looking into foundations, and doing an application to prepare the foundation. This will be a charitable foundation. This will help us reach out in generating more revenue,” Muña said.
“We are also looking into medical tourism, partnerships such as our residency program from the University of California, San Francisco. We are also looking at more revenue streams, which is what will be in the business plan and it’s close to finishing,” she added.
CHCC was established in 2011 and, based on an audit report for fiscal year 2012, still “needs to strengthen its financial reporting.” The audit report also recommended that CHCC come up with a business plan.
The business plan is widely expected to contain how CHCC will address most, if not all, questions regarding its financial and management plans.
Muña said that despite its financial difficulties, CHCC cannot just shut down the hospital and its health centers on Saipan, Tinian, and Rota.
