News of the bill arrived during Variety’s visit and a collective sigh of relief was evident among the leadership over the possible access to critically required working capital in the New Year.
“The bill’s objective is to provide the CHC a line of credit during their ‘cash crunch’ transition period,” explained Rep. Ramon S. Basa, chairman of the House Standing Committee on Ways and Means and the bill’s author.
H.B 17-258’s funding mechanism for CHC’s line of credit is the Marianas Public Land Trust.
In exchange for MPLT’s immediate transfer of $10 million into the “Commonwealth Healthcare Capital Fund” — a specific account for the money under the general fund — the trust waived its constitutional requirement to transfer interest income into the general fund during the years of 2014 to 2020.
The use of MPLT as a source of cash for CHC was a collective idea formulated and agreed upon among the governor’s office, CHC leadership, MPLT and the Legislature.
As the only cash-rich government agency still operating, the MPLT was tapped in recent years to underwrite other priorities including a $7.4 million float to CUC in 2010 and may once again save a troubled agency should Basa’s bill prevail.
“This was an expedited process among the executive and legislative branches … the bill was written in just seven days and we hope Speaker Eli C. Cabrera will fast-track it for discussion and passage” stated Basa, Covenant-Saipan.
When asked for his prediction of the bill’s support in the Senate, Basa was positive yet reserved as he noted the Retirement Fund bill undergoing consideration that also proposed MPLT as the funding source.
“Negotiations are needed and we will propose to the Senate that CHC be first in line for MPLT funds and that the Retirement Fund be second,” commented Basa on the possible collision course between the two bills.
In the event the CHC funding bill is passed by both legislative chambers and signed by the governor, CHC would be able to immediately drawdown funds from the $10 million line of credit — a welcome and immediate solution to the underfunded healthcare system.
“This is great news obviously,” stated Babauta upon confirmation of Basa pre-filing the funding bill, “but until it becomes law, we continue to move forward with what we have to make progress.”
CHC improvements since October include establishing a new leadership team, completion of a laboratory expansion, collections exceeding $1 million during the month of November and successfully lobbying for the Medicaid program to remain under the executive branch.
