Because federal grants are normally directed to the government instead of semi-autonomous public corporations, Babauta said grantors may have concerns about the new healthcare entity.
“But at the end of the day,” he added, “this corporation still belongs to the public. So there’s no total separation in my opinion, of this public corporation from the government. It is still part of the government.”
He said Public Law 16-51 or the Commonwealth Healthcare Corp. Act “administratively” placed the healthcare system in an environment where it can operate efficiently and effectively.
It basically takes out the public health system out of “interference of politicians and the bureaucratic process of the government,” he added.
Asked if he anticipates any issues regarding federal grants, Babauta said: “No, as long as we continue to meet the grant conditions.”
Eventually, he said the CNMI government would have to look at the law to see which part of it can be amended to make sure “we make our federal partners happy as well.”
No more secretary
Babauta said former Public Health Secretary Joseph Kevin Villagomez could have remained with the corporation had he submitted a letter to the governor identifying certain divisions that could remain under the now defunct Department of Public Health.
P.L. 16-51, he added, has that provision.
Babauta said a letter should have been written by Villagomez to the governor and forwarded to the presiding officers of the Legislature within 365 days after the enactment of the law.
He said the letter was never written and the corporation “absorbed everything.’
“Everything now falls under the corporation,” he added.
Villagomez was off-island yesterday and could not be reached for comment.
Not perfect
Babauta said the Commonwealth Healthcare Corp. law is not perfect like any other piece of legislation.
“And I think it is incumbent upon the healthcare corporation — the CEO and the board to look at provisions of the law that need to be amended so that we can make a better law,” he added.
One of the things that should be addressed is the separation of public health programs from the hospital, he said.
Babauta said in the states, the two are separated but it is common for these to be together in the Pacific region because of the smallness of the population.
Public health programs are almost 100 percent federally funded.
It is the hospital, he added, that has to generate its own revenue.
