Previous Story
CUC, CHCC get started on payment negotiations
Officials of the Commonwealth Utilities Corp. met for a “productive” meeting with Commonwealth Healthcare Corp. executives on a payment plan that’s agreeable to both parties, acting CUC executive director John Riegel told Saipan Tribune yesterday.
“We were able to express concerns on both sides,” Riegel said. “We know the direction the hospital wants to go. We expressed our concerns about continuing to get payments for the bills that they have accrued. We are going to hammer out details of the agreement and hopefully have something to present to the board at the next meeting [in] August.”
When asked, Riegel said they have not settled on a monthly payment. He also said he could not comment on what the details were going to be.
CHCC owes around $560,000 in bills plus penalties per month, and owe around $16 million in unpaid bills to CUC. In June, the hospital proposed a monthly minimum payment of $150,000. Later that month, the CUC board discussed a draft contract based on this figure, but board director David Sablan Jr. said then that this $150,000 would amount to a “subsidy” of the local hospital.
Riegel said yesterday there were some concerns about this $150,000, but this would be addressed.
“We need to make sure that shortfall is not overlooked because that debt has to be paid. Our goal is to come to an agreement between CUC management and CHC management on the terms…,” he said.
“They presented us with their draft of the [payment] agreement and we need to review it and make comments on it,” he added.
He said they would need to be more specific on the responsibilities of each party, like who would be responsible for what in terms of the solar energy project the hospital is doing.
