PACIFIC Medical Center will continue to honor government insurance which now has over 10,000 members and dependents, Variety learned yesterday.
The Retirement Fund’s Group Health and Life Insurance agreed to settle about 50 percent or some $100,000 of its outstanding obligations to PMC.
Revised fee schedules for medical services provided by PMC, Saipan Health Clinic, Island Medical Center and other on-island and Hawaii-based clinics will also take effect on June 1, in response to the providers’ concerns over the government insurance’s payments.
Dr. Ahmad Al-Alou, PMC medical director, requested on April 29 a “reinstatement” of the clinic as a provider to GHLI and Hawaii Pacific Medical Referrals members, and to “disregard” his earlier request.
Yesterday, the Retirement Fund board of trustees unanimously approved the reinstatement request.
Vicente Camacho, chairman of the board, said in an interview that PMC’s decision not to refuse GHLI members is commendable.
“It’s a service to our over 10,000 members and their dependents. We are glad that this problem is addressed,” Camacho told Variety.
In a separate interview, Al-Alou said “within the next few days,” the government insurance’s total payment to PMC will reach about $100,000.
“They have made significant payments, and they will soon adjust the charges for all the medical providers. Our problems have been solved, and we will continue to accept GHLI patients,” Al-Alou said.
“They have been paying us based on the standards of (the Commonwealth Health Center), which, unlike the private clinics, is subsidized by the federal and local government, and does not pay taxes,” said Al-Alou.
Camacho said the new fee schedules effective June 1 will be patterned after Medicare rates.
These, according to Al-Alou, are “federally recognized” fees, and are acceptable to the providers, which have long been pressing the government to change its fee schedules.
“PMC is grateful to the Retirement Fund, especially to Mr. Camacho’s understanding of our situation, and to the efforts of Sen. Ramon Guerrero. We have accomplished a lot of things in just a matter of weeks. We’ve been having these concerns for years,” said Al-Alou.
Guerrero, American Reform-Saipan, requested GHLI and the Retirement Fund to immediately settle the issue so as not to compromise the delivery of health care to thousands of patients.
On April 8, Al-Alou notified GHLI and the Retirement Fund that PMC would stop accepting HPMR/GHLI members effective May 10 unless they pay up front.
PMC cited consistent delay in payments and the government’s outstanding debt of over $200,000.
