Vol. 35 No.20
       ©2007 Marianas Variety
Thursday, April 12, 2007 www.mvariety.com
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Public Health may become a corporation

By Gemma Q. Casas
Variety News Staff

THE cash-strapped government is considering turning the Department of Public Health into a corporation.
The department is saddled with mounting receivables or bad debts currently estimated at more than $99 million.
Finance Secretary Eloy Inos told the Senate Committee on Health and Welfare Programs yesterday that privatizing the Commonwealth Health Center, which is under the department, would relieve the government of the burden of providing more than what it can afford.
A bill that would turn Public health into a corporation, similar to other government autonomous agencies, was suggested.
Sen. Paul A. Manglona, R-Rota, who chairs the Health and Welfare Programs Committee, said the administration should come up with a legislative proposal to carry out its plan.
“We need to do it in phases,” he said, adding that more discussions should be held about the concept of turning the department into an autonomous agency.
If Public Health becomes a corporation, Inos said the agency’s appropriations will no longer be included in the government’s yearly budget.
The new corporation’s board will decide how much Public Health will spend every year, Inos added.
Sen. Luis P. Crisostimo, D-Saipan and a committee member, said he is “puzzled” by the move and would like more information.
“I’m really puzzled. Privatization is good if it can save us money,” said Crisostimo. “If (our immigration and minimum wage are federalized) would the federal government take over some of these (health-related) liabilities?” he added.
Press Secretary Charles P. Reyes Jr. said the government will tap a collection agency to recover the hospital’s mounting receivables from employers, private individuals — and the government.
The government’s Group Health Life Insurance Program for its employees and retired public workers owes the most in unpaid medical bills to the hospital.
GHLIP is administered by the Retirement Fund.
Hundreds of patients are served daily at the 21-year-old CHC.
Public hearings regarding Public Health are scheduled for April 24 on Tinian and April 30 on Rota.