HAWAII-based Straub Clinic and Hospital has asked Gov. Juan N. Babauta for a $1.1 million payment of outstanding personal debts incurred by CNMI patients dating back to 2000, according to acting Health Secretary James U. Hofschneider.
These patients exceeded their maximum insurance benefits. A couple of them suffered catastrophic illnesses, including leukemia, cancer and multi-organ failure.
Hofschneider said one of the patients owed Straub Clinic and Hospital over $500,000.
This is one of the pressing issues raised by Hofschneider during his Senate confirmation hearing held on Tinian last May 3.
“Failure to address the non-payment of patient debts in Honolulu will be catastrophic to this community as the private hospitals in Hawaii will cut us off, and refuse to accept any more patients from the CNMI,” Hofschneider said.
The CNMI, according to Hofschneider, needs to address the issue of financing catastrophic illnesses, and this may be done through an increase in the taxes on tobacco and alcohol.
During the hearing, Hofschneider said he wanted to “forge a partnership” with the members of the Legislature to address various health issues, including the non-payment of outstanding debts to referral hospitals in Hawaii.
Straub Clinic and Hospital is one of the Hawaii-based medical institutions where the CNMI refers patients to.
Hofschneider also raised concern about the “inadequate management and financing” of the government-run Group Health and Life Insurance.
He said GHLI owes the Commonwealth Health Center at least $27 million.
“CHC has not been paid by GHLI for care given to its members—us government employees,” he said.
The medical referral program and its current rules and regulations have to be re-examined and amended by consensus, he added.
Public Health’s rules on family escorts are very restrictive as written in 1996, and the program does not pay for the patients’ share not covered by insurance unless the patient is “absolutely indigent.”
This definition of indigent is more restrictive than the Medicaid criteria as it looks at the aggregate income of the entire household and not just the individual patient, Hofschneider said.
He said he had been asked many times to commit payment for expenses that the Public Health did not have the authority to pay.
“I ask that the Department of Public Health, the Legislature and other members of our community get together to brainstorm and try to resolve some of these difficult issues,” Hofschneider said.
