In an interview over the weekend, Rep. Ray N. Yumul, expressed fear that CHC will still be included in the “very low” fiscal year 2012 budget if the hospital’s transformation is delayed for another year.
Yumul, R-Saipan, said if there is no guarantee that the hospital will earn the revenue projected in the governor’s submission, then the FY 2012 budget cannot be balanced.
Fitial in his April 1 submission of the FY 2012 budget said CHC’s estimated revenue is $18 million from hospital charges, and will not be available for appropriation.
But as a “start-up,” $5 million from the general fund will given to the healthcare corporation.
In his letter yesterday to Fitial, Manglona said pursuant to P.L. 16-51, the Department of Public Health should begin the transition on July 15, 2011 unless the date is extended by the law.
But to date, the Senate president said, “there is no authorized extension of the transition date of July 15, 2011.”
Therefore, he added, the transition should be taking place now.
Manglona also noted that in light of the state of emergency at CHC, the Tinian Health Center and the Rota Health Center, Fitial’s healthcare advisor, former Gov. Juan N. Babauta, has informed the Senate in a meeting “that it is imperative to begin the transition process in order to address the chronic recurring issues at these healthcare facilities.”
Manglona said the transition cannot be delayed because the CNMI’s current healthcare system “is not effectively providing healthcare services as demanded by the people.”
The Department of Public Health, he added, needs autonomy and flexibility in order to build a “high quality, efficient, market-oriented public healthcare delivery system that is financially self-sufficient and independent from the commonwealth government.”
The current system, he added, “is not an acceptable healthcare system for the people as evidenced by the state of emergency declaration.”
Press Secretary Angel A. Demapan, in an email, said the administration sought to delay the implementation of the law “to coincide with the start of the new fiscal year wherein the governor had proposed $5 million in seed money to get the healthcare corporation going.”
The administration, he added also sought legislative action to amend the qualification requirements for the health corporation’s board of trustees.
Under the current law, he said the administration finds that “it would be very difficult to fill the membership of the board in a timely manner.”
‘Obamacare’
Manglona said President Obama’s Affordable Healthcare Act applies to the CNMI according to the U.S. Department of Human and Health Services so certain mandates must be met by the islands in a timely manner.
State governments, he noted, are required to enact a law complying with the federal healthcare law, including the health insurance exchange, by Jan. 1, 2014.
Manglona said the Department of Public Health continues to “underwrite” unfunded liabilities like providing healthcare services to the indigent population that cannot afford to purchase health insurance, overextending Medicaid services to CNMI residents and providing end stage renal disease, or ESRD, treatment and other services to Freely Associated State and other non-U.S. citizens.
Manglona said ESRD patients who are not U.S. citizens and are not qualified for Medicare and Medicaid cost the CNMI government about $1.2 million annually.
He also noted that “the aging CHC facility” is nearly 30 years old and needs major repairs and renovation.
As a public corporation, the hospital will be able to borrow money, if necessary, to fund repairs in addition to its many other necessities, Manglona said.
Board members
The “monumental” task of the transition requires time, expertise, and money, Manglona said.
However, he added, the first step that must be taken, which does not cost too much, is to appoint the members of the board of trustees with the advice and consent of the Senate.
He reminded Fitial that P.L. 16-51 requires the board to search and recommend a qualified person to be the chief executive officer whose selection may take some time, so the sooner the board is created the sooner a CEO can be selected.
Manglona said the Senate is ready to confirm nominations for healthcare board and assist in the transition process, if necessary.
