THE CNMI government owes the Commonwealth Healthcare Corp. over $2 million for the Health Network Program, according to a report CHCC submitted to the Office of the Governor and the Legislature.
CHCC Chief Executive Officer Esther L. Muna provided Gov. Arnold I. Palacios, Senate President Dennis James Mendiola and Speaker Edmund S. Villagomez, a copy of the 2025 HNP Analysis on March 1, 2025.
The report emphasized that the HNP, formerly known as the medical referral services, “is not an optional initiative — it is a legislative mandate that must be adequately funded by the CNMI government.”
Public Law 22-33, which created the HNP, allows CHCC to administer the program but mandates the CNMI government to continue to fund it. However, the report said, CHCC “has been forced to allocate its own limited resources to sustain the program, placing significant financial strain on the only healthcare system in the CNMI.”
P.L. 24-1, or the revised fiscal year 2025 budget measure, increased the government’s allocation for the HNP to $1.2 million from $800,001.
But according to the report, patient volume is still high, “demonstrating the ongoing and increasing need for off-island referrals.”
Without continued government funding, the report said, CHCC’s ability to provide critical healthcare services for the CNMI population is at risk.
To date, the report said, the cumulative balance owed to CHCC for the HNP is $2,015,870, of which $833,447.99 is due for this fiscal year alone.
“CHCC has shouldered financial responsibility for too long, despite clear legal obligations for government support,” the report said. CHCC, the report added, has successfully reduced total program expenditures from $19 million to $6 million since it took over the administration of the HNP.
The report said immediate legislative action is required to secure sustainable funding, ensure continued patient access to critical care, and protect the financial health of CHCC.
“We urge the Legislature to allocate consistent funding for this program,” the report stated.
Previously, the medical referral program was under the governor’s office, which reprogrammed monies whenever the Legislature failed to adequately fund the program.
