Villagomez out, Babauta in

The Governor’s Office and the Attorney General’s Office made a final determination yesterday that the Department of Public Health no longer exists after the healthcare corporation law went into effect on Oct. 1.

Gov. Benigno R. Fitial also appointed yesterday former governor Juan N. Babauta as the corporation’s new chief executive officer, while confirming that erstwhile DPH secretary Joseph Kevin Villagomez’s position is officially dissolved, along with the health agency.

Fitial and Attorney General Edward Buckingham pointed out that provisions of Public Law 16-51-the Commonwealth Healthcare Corporation Act of 2008-clearly spells out that the public health secretary may reserve some functions under DPH, which must be done within a specific period of time. Villagomez, however, failed to make such reservation within the prescribed period, Fitial said.

Earlier, then acting governor Eloy Inos and Villagomez separately stated that the healthcare corporation will be independent of DPH, which they said will handle preventive programs, most of which are federally funded.

Fitial gave a differing view on the matter yesterday.

“Does the law say that? I read the law. I understand the law and there was no confusion about what the law says. It is clear that the secretary of public health may reserve some functions of the public health to the government within the specific period of time and there is a process. He had 365 days to recommend to the governor and the presiding officers of the Legislature the functions of the department that he would like to be reserved for DPH.and he never did, so maybe he doesn’t want to reserve [anything],” Fitial told Saipan Tribune.

Buckingham also issued yesterday a legal opinion, stating that, except for the off-island medical referral program, everything under DPH will be absorbed by the corporation.

Fitial also swore in yesterday the members of the corporation board, which selected Joaquin Torres as its chair. By acclamation, the board recommended former governor Babauta as the organization’s chief executive officer, which was immediately approved by the governor.

Babauta’s employment contract and salary will be determined later by the board, according to Fitial.

When asked about his plans for Villagomez, now that he is officially out as DPH chief, Fitial said it is up to the corporation if it will hire him for any position. “That’s up to the corporation because it now controls the healthcare system,” he said.

Saipan Tribune tried but failed to contact Villagomez yesterday.

Clarification

Babauta told Saipan Tribune that he is glad about the clarification made by the AG on the healthcare corporation law. “I’m glad that the [AG] was able to clear that up because it is causing unnecessary confusion within the department,” he said.

This early, he said he needs to first focus on organizing the board and the corporation and come up with a complete assessment of the existing situation and the financial standing of the organization before it can move forward.

He pointed out that one of the immediate goals of P.L. 16-51 is the development of a five-year strategic plan for the healthcare corporation. He described this as a business plan and a roadmap that will guide the corporation in the next five years.

The healthcare corporation has been allocated a $5-million seed money for its operation this fiscal year.

Babauta said the amount is “obviously not enough” to cover all expenses. He said there’s a need to make the entire healthcare system automated so it can generate billings more efficiently and effectively.

One way to survive with only $5 million is to increase the hospital’s collections and develop new ways to generate more funds.

“I know we’re going to deal with small issues everywhere.but we cannot take our eyes from the bigger goals and that is why we need to have strategic plans,” added Babauta.