Housing perk for CHC staff to end in Sept.

The law that created the housing benefit for off-island hires of the public hospital has long expired and its sunset provision must now be enforced, according to Commonwealth Healthcare Corp. CEO Esther L. Muña.

Muña targets the removal of this benefit by the end of the fiscal year in September.

Even before the corporation’s inception, the Commonwealth Health Center has long been providing housing allowances to medical staff and providers it hires from outside the Commonwealth. The perk is $600 a month for single employees and $800 a month for those with families.

“The housing benefit has to go. We have a sunset provision that basically says that anybody working more than five years [in the hospital] should not be getting this housing benefit and we will do that,” Muña told Saipan Tribune.

A sunset provision is a clause within a statute or regulation that provides that the law shall cease to have effect after a specific date, unless the Legislature extends it.

Muña said the then-Department of Public Health continued to provide this benefit despite the sunset provision of the law.

“That expired a long time ago but because there was no planning, the department continued implementing this benefit. With the challenges we’re facing now, we decided to have this removed,” she said.

Muña assured, however, that a new compensation schedule would be enforced in lieu of this housing perks for off-island hires.

“We’re looking at probably by end of the fiscal year. Myself and the hospital services director [Jesse Tudela] are now working on adjusting the salary of our employees, not only for off-island recruits but also for those locally hired, where a portion of the housing allowance will be incorporated in their contract,” she said.

Muña, however, could not immediately give an estimate of how much employees’ salaries will go up. The final amount will depend on credentials, years of service, and employee performance.

The goal, she said, is to bring “fairness and equity” among off-island and local hires.

Based on CHCC records, it has over 100 employees that receive this benefit, mostly nurses recruited from the Philippines way back in the days of the Department of Public Health.

“The housing allowance is basically a benefit that has to go because it’s not given to everybody. What we’re saying now is, based on the sunset provision, we have to stop it,” she said. She assured that the management will sit down with affected employees on this issue.

The corporation, which is only given a meager budget through local appropriation, continues to face fiscal challenges in its day-to-day operations. Muña explained that housing benefits, which is taxable, is a clear expenditure for the agency.