By Emmanuel T. Erediano
[email protected]
Variety News Staff
IN the face of high demand for off-island specialty medical care, the current funding structure for the Health Network Program is unsustainable, according to the recent analysis submitted by the Commonwealth Healthcare Corp. to the administration and the Legislature.
As of fiscal year 2026, according to the analysis, the CNMI government owes CHCC a total of $5.2 million, including $822,551 incurred from Oct. 1, 2025, to Dec. 31, 2025.
Public Law 22-33, which created HNP, formerly known as the Medical Referral program, requires the NMI government to fund the program. But in recent years, CHCC said, appropriations have been insufficient to meet the demand for medical care provided under the program. As a result, CHCC has “continued to absorb significant program costs to prevent disruption of patient care to off-island health care providers.”
Without a sustainable funding mechanism, the continued reliance of the program on CHCC operating funds to support the legislatively mandated program threatens the financial stability of the CNMI’s only healthcare system.
Among the findings is the high demand for off-island specialty care.
Last year, the report said, hundreds of CNMI residents required off-island care for services that are not available here. The largest referral volumes occurred in high-specialty fields such as 170 for cardiology, 118 for vascular surgery, 112 for diagnostic imaging, and 93 for urology. The high number of patient referrals for cardiology, the analysis said, highlights the continued demand for advanced cardiovascular services. These trends reflect structural realities of small island health systems and demonstrate the continued need for a stable referral infrastructure.
Also, the cost analysis presents substantial differences in logistical costs depending on referral destination. For a patient who is sent to Guam, for example, the cost is $3,338. Those sent to Hawaii, the cost per patient is $23,431; to San Diego, is $25,993; and to Los Angeles, it’s $33,083.
For FY2027, HNP will need approximately $5.9 million, CHCC said. This encompasses all necessary costs while ensuring cost efficiency. CHCC absorbs all payroll and administrative staffing costs, which are not included in the budget request for the program, so without dedicated funding, these costs continue to place significant strain on CHCC’s operating budget.
“While CHCC has successfully reduced program costs and implemented operational improvements, the current funding structure is unsustainable. Continued reliance on CHCC operating funds to support the program threatens the financial stability of the Commonwealth’s only healthcare provider,” the analysis states.
It added that immediate legislative action is necessary to ensure stable funding, strengthen referral infrastructure, and protect access to life-saving medical care for CNMI residents.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
