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‘Fate of hospital’s loan plan up to the Legislature’
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Posted on Jan 07 2012
By Moneth Deposa
Reporter
Reporter
The decision on who will sign for a potential loan that will be used to modernize the hospital’s electronics health record is now with the Legislature, according to Commonwealth Healthcare Corp. chief executive officer Juan N. Babauta.
The Marianas Public Land Trust has already approved in principle the $1.5-million loan proposal for the corporation’s electronic health record system at the Commonwealth Health Center and Tinian and Rota health clinics. Since it made the decision in November, MPLT has been awaiting the naming of the person who will sign the loan agreement, whether it is the corporation’s CEO or Gov. Benigno R. Fitial.
Babauta told Saipan Tribune that no final decision has been reached between him and the Executive Branch because the issue now lies with the Legislature.
“The MPLT has not approved anything yet [on the project] and they [corporation trustees] just essentially agreed to a figure [that] the Legislature will have to approve in the form of legislation. So the decision is now up to the Legislature,” he said.
He said the legislation would address all MPLT concerns on the need for guarantee and assurance of loan repayment.
MPLT earlier said that the release of the loan would depend on the final decision on who between Fitial and Babauta would be the signatory to the loan agreement.
The loan has been assigned a 5-percent interest rate per annum, with payment terms of 18 months. The funds will be used to develop the first stage of the project: procuring new computers, software, and manpower training.
The corporation can avail of over $5 million incentives and bonus from the federal government if it will show meaningful use of the new electronic health record system. The CNMI plans to use this amount to pay off the loan.
This $5 million incentive from the federal government will be doled out in a four-year period: $2 million in the first year, $1.5 million in the second year, $1 million in the third year, and $500,000 in the final year.
