State of emergency extended at CHC; RFP for analysis out

The Commonwealth Healthcare Corp. remains under a state of emergency after Gov. Benigno R. Fitial signed Friday Executive Order 2012-04.

The last time the corporation was placed under a state of emergency was on April 20.

“A state of emergency for the [CNMI] is declared due to the imminent threat of the disruption of critical medical services in the Commonwealth and the danger that such a condition poses to the public because of the great increase in otherwise preventable deaths that would result,” Fitial said in his two-page order.

The emergency declaration would suspend statutory or regulatory provisions as well as the reprogramming of funds to meet the emergency at the corporation.

However, the declaration incorporates the memorandum of understanding between the corporation and the Department of Finance, Office of Management and Budget, and the Office of the Attorney General last March 19 “to ensure that the suspension of regulatory provisions does not lead to financial abuse.”

“In addition, any financial reports submitted by the CHC pursuant to the MOU must be submitted with a certification of the person submitting them stating that the reports are full and accurate under penalty of perjury,” added the governor.

Healthcare Corp. board chair Joaquin Torres, when asked for comment, welcomed the emergency declaration since it is expected to address the issue on the proposals for the healthcare system analysis at the Commonwealth Health Center.

Torres is optimistic that the emergency declaration will also address CHC’s need for a new charge master, which still needs to be published in the Commonwealth Register under regular provisions.

The declaration comes after the OAG formally issued a request for proposal for the corporation’s healthcare system analysis. The analysis was initiated after negotiations between the corporation and the Idaho-based International Consulting Services to provide billing and collection services for CHC fizzled out.

Representatives of The Medical City, a Philippine-based firm currently building the new Guam Regional Medical City worth $215 million, earlier visited the island to assess CHC’s viability to be privately run.

Margaret Bengzon, president and chief executive officer of GMRC, said via email that TMC visited Saipan twice at the invitation of the governor and at their own expense to determine how TMC may assist the CNMI in addressing the current challenges in its health care system.

But the government decided to open the procurement process for the healthcare system analysis. It was later found out that TMC and the administration, through the OAG, did not agree on the $150,000 reimbursement fee that TMC was asking for if its output is used by the corporation and implemented by another company.

At least two other companies are reportedly interested in doing the assessment for CHC.

Bengzon clarified Saturday that TMC did not pull a “bait-and-switch” on the CNMI as they made it clear “from the very beginning” that the assessment would be free if the CNMI disagreed with the study’s recommendations or if it agreed with the recommendations and engage TMC to implement them.

“We believe that this proposal gives the CNMI the greatest flexibility and the least risk in addressing the current challenges besieging its health care system. It is also a more expedient approach given TMC’s unique ability to both conduct the study and proceed directly to implementation, including infusing fresh capital into CHC as may be required,” she told Saipan Tribune.

Board chair Torres, for his part, said it would be “fair and reasonable” to open the procurement process.

“I think it’s in everyone’s interest to have it done that way since there are more than one group that’s interested in doing the assessment,” he said.

According to Torres, the recommendations that will come up in the assessment will have to be reviewed by the corporation and, if accepted, subsequent changes will have to be made at CHC.

Torres plans to meet with the governor regarding the RFP and the committee that will review the proposals, among other things.