COMMONWEALTH Healthcare Corp. Chief Executive Officer Esther Muna said she and CHCC Chief Financial Officer Perlita Santos will reconcile their records to address Finance Secretary David DLG Atalig’s concerns regarding CHCC’s funding requests.
In a September 7 letter, Atalig told Muna that the amount she mentioned in her Aug. 1 memorandum was not what the Legislature had appropriated.
For fiscal year 2018 for example, Muna’s memo indicated that CHCC was appropriated $2.2 million, but based on Finance’s review of the budget law, the corporation was appropriated only $708,311.
For FY 2019, the memo stated that CHCC was appropriated $10.2 million, but Public Law 20-67 indicates that the amount was only $4.2 million.
For FY 2020, the memo stated that CHCC was appropriated $2.9 million when it actually was just $1 million, the Finance secretary said.
He said over those years, the actual appropriations for CHCC totaled $36.4 million, and not $55.8 million as Muna’s memo indicated.
Atalig said of the $36 million, Finance has transferred $26.6 million to CHCC, leaving a remaining balance of approximately $9.8 million.
CHCC is an autonomous public corporation that still receives subsidies from the central government.
Atalig noted that the Torres administration and Finance have shown CHCC “unequivocal support” in response to the Covid-19 pandemic. The administration implemented strict public health guidelines based on recommendations from CHCC during the early stages of the public health emergency, Atalig said.
“The Torres administration has provided extensive additional support to CHCC, including support for its technical, manpower, and facility needs. The CNMI is currently helping CHCC upgrade to an updated financial system that would help streamline existing processes within the corporation. To support CHCC in its efforts, the Department of Finance also entered into a memorandum of understanding on March 22, 2022 with additional funding due to the financial impacts of the pandemic,” Atalig added.
He said the Torres administration’s commitments to CHCC include the following:
1) Financial Management Information System upgrade —$555,230.68
2) Memorandum of Understanding — $3,300,037.50
3) CHCC Alternative Care Sites —$16,805,893.56
4) CHCC Medical Care and Treatment Site — $811,116.79
5) CHCC Additional Parking Lot — $275,396
6) Contracts for travel nurses —$1,600,577.69
Atalig likewise informed Muna that the magnetic resonance imaging or MRI and hyperbaric chambers for CHCC are a high priority for the Torres administration.
He said funding for the project was included by the governor in his American Rescue Plan Act spending plan. He added that the project is with the Infrastructure and Recovery Program, and $10 million in funding is available for the indicated purpose.
In an interview on Monday, Muna said, “Undoubtedly, the entire CNMI appreciates the support to mitigate and prevent the further spread of infectious disease and health overall.”
She said she and CHCC’s CFO “look forward to reconciling our records once and for all and addressing all the items in our Aug. 1 letter for clarity.”
Past billings
During a recent press briefing on KKMP radio station, Atalig said:
“Keep in mind that when we allocated medical referral monies from ARPA, it was also not just directly to give 100% to CHCC; it was also paid for past billings of medical referral.”
He said some lawmakers have politicized the issue, adding that no one talks about the good things that the administration has been doing to help CHCC, including spending close to $30 million to help mitigate the Covid-19 pandemic in the CNMI, building a new parking lot for the hospital, upgrading CHCC’s financial system at no cost to CHCC, and paying CHCC’s utility bills.
“Who is paying CHCC’s [Commonwealth Utilities Corporation] billings? It’s the central government…. No one wants to discuss how much we paid CHCC for their CUC bills,” Atalig said.
“We don’t need to politicize this. I work closely with CHCC to make sure that we work together in all aspects…. And what we’ve promised to allocate, those cannot change. We’re working on that. We’re still going to continue to work on it.”
With K-Andrea Evarose S. Limol
David DLG Atalig
