THE Commonwealth Healthcare Corp.’s Health Network Program, formerly known as the Medical Referral Services Office, informed its beneficiaries that beginning Sept. 1, 2024, subsistence benefits will be suspended “until adequate funding” is appropriated and made available to CHCC.
In a memorandum, CHCC stated that Public Law 22-33, which created HNP within CHCC, mandates that the hospital operate the program “within budgetary appropriations.”
Unfortunately, the memorandum stated, HNP “continues to be significantly underfunded” with the last appropriation made in May 2024 through Saipan Local Law 23-15. Furthermore, a notice from the Office of Management and Budget informed CHCC that HNP funding will be reduced by 2.15% for the remaining months of the current fiscal year.
Gov. Arnold I. Palacios on Sunday told reporters, “It’s not going to happen,” referring to the suspension of subsistence benefits.
Asked if the central government had already transmitted funds to CHCC for HNP, he said, “We already did.” Asked how much, he said they had transmitted “enough.”
During a budget hearing last month, CHCC Chief Executive Officer Esther L. Muna asked the Senate Fiscal Affairs Committee to fund HNP adequately.
In fiscal year 2023, according to CHCC Chief Strategy Officer Eleanor Cabrera, they received $5.4 million from the CNMI government for HNP. However, CHCC’s actual expenses for the program was $7 million, which means that CHCC had to cover for the $1.5 million shortfall from its own revenue.
On Aug. 15, 2024, Muna said CHCC had yet to receive $8.6 million in Medicaid funding from the central government. The amount is for the healthcare services that CHCC provided to Medicaid patients from June 1, 2023 to Sept. 30, 2023.
