CHCC wants $41.5M budget for FY 2015

The Commonwealth Healthcare Corp. submitted an over $40-million operating budget plan for fiscal year 2015, an amount it described as only an “initial budget” pending unforeseen expenses as it continues to address the requirements of the U.S. Centers for Medicare and Medicaid Services.

In a budget plan turned in by CHCC interim CEO Esther L. Muña on April 1 to the Office of Management and Budget, CHCC proposed an operating budget of $41.5 million that includes the Tinian and Rota health centers.

In her letter to OMB’s Virginia Villagomez, Muña indicated that baselines for fiscal year 2015 are projected on last fiscal year’s collections, billed procedures, and pending claims from fiscal years 2012, 2013, and 2014.

The bulk of the proposal is allocated for personnel at $26.391 million. This is a 2-percent increase over the current personnel cost. CHCC proposes a total of 567 personnel for fiscal 2015—also 2-percent hike.

The 567 proposed positions will be assigned at the following: Commonwealth Health Center, 465; CEO office, five; Public Health, 17; Community Guidance Center, seven; Tinian Health Center, 30; and Rota Health Center, 43.

For operations, Muña proposes a budget of $9.960 million.

Some $3.2 million will go to medical general supplies; $2.3 million for medical pharmaceutical supplies; $938,000 for medical laboratory supplies; $857,000 for professional services; $851,000 for cleaning services; and $570,000 for repairs and maintenance, among other items under operation.

Muna said that overall general medical, laboratory, and pharmaceutical supplies expense is budgeted at $6.5 million—an increase of 9 percent compared to last fiscal year’s submission. The inflation factor, she said, is due to increased services and costs.

For utilities, CHCC projects an expense of $4.9 million, a 16-percent decrease. The decline is anticipated due to an HVAC system upgrade that will eventually reduce power consumption.

Also in the budget proposal is interest expense as the corporation expects to extend its line of credit with the Marianas Public Land Trust.

According to Muña, the fiscal 2015 budget proposal will be an ongoing process and is presented as a working document. She said the management will continue to assess areas to reduce operating costs.

“However, the corporation will continue to incur unforeseen expenditure as we continue to address Medicare compliance,” she told OMB.