COMMONWEALTH Healthcare Corp. Chief Executive Officer Esther Muna on Monday asked Gov. Arnold I. Palacios for additional funding, “in excess of the appropriation from the general fund,” for medical referrals now known as the Health Network Program.
In her letter to the governor, Muna said additional funding is needed “to sustain the operations of our Health Network Program.”
The $116.1 million revised fiscal year 2023 budget, which the House of Representatives is expected to pass on Friday, allocates a $1.169 million subsidy for CHCC, an autonomous public corporation.
Muna told the governor that despite the “ongoing success” to expand health services, “there are services not available within the Commonwealth.” The Health Network Program, she added, “bridges this gap for our income-eligible residents.”
While it provides a lifeline for many, Muna said, “we are finding that the financial encumbrance of this program is beginning to impede our responsibilities to providing care within our borders.”
She said when the Legislature passed the bill that transformed the Department of Public Health into CHCC in 2009, “there was an understanding among members of the House that until CNMI enacts a comprehensive healthcare financing system, CHCC will continue to require governmental subsidy particularly for indigent care and medical referrals.”
At the time, Palacios was the House speaker, and Lt. Gov. David M. Apatang was a House member.
Muna also informed the governor that from 2018 to 2020, the average annual deficit of the medical referral program was more than $9.8 million. Since the transfer of medical referral services to CHCC, “we have been able to reduce expenditures by more than 30%, demonstrating our commitment to financial responsibility and efficiency,” Muna said.
But despite this progress, she added, “we still rely on public funds to keep the program operational.”
She said CHCC understands that the government budget is limited and they appreciate the governor’s continued support for the Health Network Program.
“We are committed to ensuring that any additional funds will be utilized prudently and effectively to bring about tangible improvements to the healthcare system.” Muna said.
