THE Commonwealth Healthcare Corp. supports House Bill 23-57, which would create a revolving fund for the Health Network Program, and H.B. 23-39, which would provide tax credits to those who make donations to CHCC and other clinics in the CNMI.
CHCC Business and Quality Assurance Chief Operating Officer Tiffany Crisostomo and Chief Strategy Officer Eleonor Cabrera appeared before the Senate Fiscal Affairs Committee on Thursday to express their support for the bills.
Authored by Rep. Blas Jonathan Attao, H.B. 23-57 would establish an HNP revolving fund account with the Department of Finance to fund the travel and housing cost of medical referral patients. Civil penalties and liens are the bill’s funding sources.
Crisostomo said under the management of CHCC, the HNP has made “substantial strides in improving processes and cutting costs.”
She said “the dedicated efforts of the HNP staff have facilitated connections between patients and providers, helped schedule appointments, and provided access to low-cost or free services beyond the CNMI.”
She said they have reduced the program’s expenses to $5.7 million in FY 2023 from about $16.9 million in FY 2019. This, she added, “demonstrates [the] effectiveness of the program’s operation.”
Nevertheless, Crisostomo said it is “vital to recognize the financial challenges confronting HNP.” She said since the initial quarter, the program has been operating at a deficit. CHCC general funds, she said, “are presently being tapped to sustain the program, and the lack of Medicaid payment in FY 2023 has worsened the scenario leading to unresolved outstanding invoices.”
Crisostomo said meeting payments to HNP vendors is “proving to be a significant challenge today.”
She added, “Highlighting on the current reality we face, it is imperative that we take immediate action to secure alternative sources of funding for HNP to ensure its continued operation.”
She said H.B. 23-57 presents “a viable solution,” and could “alleviate the burden on CHCC general funds and enable [CHCC] to provide essential healthcare services to our community members who rely on HNP for off-island medical treatment.”
“I kindly urge you to prioritize the passage of H.B. 23-57 and allocate funds to the HNP revolving account. Our medical referral patients are in dire need of assistance, and it is our responsibility to ensure that they receive the care they require without facing financial hardship,” Crisostomo said.
Tax credit
Cabrera also expressed support for H.B. 23-57 and H.B. 23-39.
Authored by Rep. Thomas John Manglona, H.B. 23-39 seeks to establish a tax credit for monetary donations made to public hospitals and clinics.
She said CHCC, the health centers on Tinian and Rota, and other clinics on Saipan serve as vital healthcare hubs offering essential medical services as public providers to individuals regardless of income and healthcare coverage.
However, she said, CHCC continues to face financial challenges due to its rising health cost, limited government assistance and the growing demand for public health services.
She said about a third of CNMI individuals rely on Medicaid to afford healthcare and another third are without insurance. She also said that 37% of CHCC’s 2023 revenues came from Medicaid reimbursements at 83% of cost billed.
Cabrera said uncompensated care provided to under-insured and uninsured patients “is creeping back up to pre-pandemic levels following the expiration of the Medicaid presumptive eligibility amounting to over $2.6 million for 2023, not including any yet to be remitted federal Medicaid payments still pending for last fiscal year.”
“Given all this, you can imagine how monetary donations can play a crucial role in helping CHCC and our clinics face these challenges,” Cabrera said.
She said tax credits would encourage individuals and businesses to contribute financially to the public health system and provide much needed support for clinical operations and strategic initiatives.
The Senate Fiscal Affairs Committee chairman, Senate Vice President Donald Manglona, said they will wait for more information from CHCC before acting on H.B. 23-57 and H.B. 23-39.
