Vol. 35 No.37
       ©2007 Marianas Variety
Monday, May 7, 2007 www.mvariety.com
Serving the CNMI for 35 years
 

© 2007 Marianas Variety
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Gov’t cancels outpatient clinic privatization, prepares ‘more comprehensive’ CHC privatization

By Moneth G. Deposa
Variety News Staff

THE Fitial administration has cancelled the request for proposals for the privatization of the Commonwealth Health Center’s outpatient clinic and will instead prepare a plan for turning over the entire hospital operation to a private corporation.
“We will pull the (RFP) back so that we can have a package instead of just the outpatient,” Gov. Benigno R. Fitial told Variety on Friday. “We’re considering putting out a more comprehensive plan that will be beneficial to the commonwealth.”
The deadline for the bid proposals is May 10, but the governor said it has been cancelled by the Department of Public Health upon instructions from Finance Secretary Eloy Inos.
Inos, in an interview on Saturday, said the RFP was cancelled “so we can put together a more comprehensive privatization project for the entire (Commonwealth Health Center). The outpatient clinic is only a part of the health care delivery service and, at this time, we just don’t think that CHC can continue to operate because of the long-standing tradition of that department having to be subsidized by the general fund.”
He said when the hospital is operated by a private entity, “then we’re not necessarily talking about raising hospital rates but about collecting receivables.”
He added, “If CHC is run by a private organization we’re sure that they will see to it that they get those receivables.”
Inos believes that an interested private group will not just focus on prevention but on medical procedures as well.
“The successful operator should be able to provide services as complete as possible…from hospital equipment to medical professionals,” he added.
But Inos said the privatization of CHC will take some time.
“I don’t think we will be able to do it this year but sometime during FY 2008 hopefully we can do it…because this is a major undertaking for the CNMI,” he said.
Every year, the cash-strapped government spends at least $2 million to $3 million on outpatient services while another $1 million to $2 million is allotted for allied personnel, including doctors and nurses.
Joe Santos, the Department of Public Health deputy secretary, said seven individuals from various companies attended the pre-bid hearing on April 12.