Arnold I. Palacios
COMMONWEALTH Healthcare Corp. Board Chairman Juan N. Babauta and Chief Executive Officer Esther M. Lizama on Monday thanked Gov. Arnold I. Palacios for his “unwavering support” for the islands’ only hospital.
In a joint letter, Babauta and Muna extended their “deepest appreciation” for the governor’s “invaluable support and leadership throughout the past year.” In particular, they thanked him for his assistance in addressing the outstanding Medicaid balance owed CHCC from June to September 2023. This “is of utmost importance to the CHCC Board of Trustees,” they said.
They cited the governor’s letter to U.S. Department of Health and Human Services Secretary Xavier Becerra regarding Medicaid payments. They said the “pause” in payments in 2023 “placed CHCC at risk of reducing critical services essential to our community’s health.”
Babauta and Muna noted that in his letter to the U.S. health official, the governor emphasized the significance of prioritizing the sustainability of the healthcare system and ensuring access to medical care for CNMI residents.
“As…a safety net provider, Medicaid payments must reimburse the hospital for its costs,” Babauta and Muna said.
They said with the help of the governor and U.S. Congressman Gregorio Kilili Camacho Sablan, the CNMI Medicaid Agency is actively exploring all possible avenues to find solutions for reimbursing the costs of providing medical services during this period. Ultimately, they said, lifting the capped Section 1108 funding would ensure equitable services for CNMI residents, and “we will continue to advocate for this for the sake of the entire CNMI’s health.”
Section 1108 of the Social Security Act establishes an annual ceiling on federal financial funds available for the Medicaid programs in the territories.
Babauta and Muna said CHCC, through its grants and fiscal integrity team, its health information technology team and the chief operation officer for facilities and his team, is closely collaborating with CNMI Capital Improvement Project Administrator Elizabeth Balajadia in identifying several top priority projects that have obtained the governor’s support and approval.
These projects include:
1) A new electronic health record.
2) Flooring replacement.
3) Purchase of a CT scan machine.
4) Purchase of a non-invasive device for breaking up kidney stones with the use of electromagnetic shockwaves.
5) Medication management software and a medication dispensing machine.
6) Purchase of a backup generator.
7) Multiple phases of solar panels to align CHCC with the administration’s Climate Action Plan.
In an interview, Babauta said they, the CHCC board, and CEO have sought the governor’s help “so we want to thank him for the things he has done for us to turn CHCC around, especially in the area of CIP funding for CHCC. And as chairman and CEO, we will be reporting on that on a later date,” Babauta added.
He said given the difficult economic times, he and Muna understand “what we are going through as a Commonwealth.” But, he added, “we have to give credit where it’s due. And these [CIPs] are the things that the governor has done for CHCC. Of course, we have a lot more other issues and we will go to him for help. “
For her part, CHCC Chief Financial Officer Perlita Santos said “it’s really about understanding the economic situation,” which was why the central government was not able to appropriate funds for CHCC last year.
However, she said the governor found ways, such as tapping CIP monies, to fund some of CHCC’s needs.
“We don’t get everything we asked for, but he always includes us on his list of priorities when funding opportunity comes,” Santos said.
