By Emmanuel T. Erediano
[email protected]
Variety News Staff
THE Commonwealth Healthcare Corp. on Monday submitted to the Legislature a $5.9 million appropriation request for the Health Network Program for fiscal year 2027.
In the revised FY2026 budget, HNP was allotted $1,082,672.
In a joint letter to Senate President Karl King-Nabors and Speaker Edmund S. Villagomez, CHCC Board of Trustees Chairman Juan N. Babauta and CHCC Chief Executive Officer Esther L. Muna, PhD, MHA, FACHE said HNP, formerly known as the Medical Referral Program, “remains a critical lifeline for our community.”
They said hundreds of residents each year depend on off-island referrals for essential services such as cardiology, vascular surgery, diagnostic imaging, and other advanced treatments. In 2025 alone, Babauta and Muna said, cardiology and vascular surgery referrals accounted for 288 patients, underscoring the persistent and growing demand for specialized care.
Despite this need, the chairman and CEO said funding for the program has not kept pace with demand.
They also informed legislative leaders that as of fiscal year 2026, the cumulative amount owed to CHCC for HNP expenditures has reached $5.2 million, including costs incurred in the current fiscal year. In the absence of sufficient appropriations, Babauta and Muna said, CHCC has continued to absorb these costs to prevent disruption of critical patient services.
“This practice is not sustainable and places the Commonwealth’s only public healthcare system under significant financial strain,” they said.
They also stressed that CHCC has made substantial progress in improving efficiency and reducing costs. Through strategic management and operational reforms, they said, annual HNP expenses have been reduced from about $19 million to approximately $5 million to $6 million — a nearly 70% reduction — while still maintaining access to essential care.
Their FY2027 funding request reflects a disciplined and data-driven budget aligned with these efficiencies. It will support the following:
• Airfare, lodging, and transportation for medically necessary off-island care.
• Subsistence and support services for patients and approved escorts.
They also noted that CHCC absorbs all administrative and staffing costs associated with HNP, which are not included in the appropriation request.
“Failure to provide stable and adequate funding will have serious consequences, including disruption of patient access to lifesaving care, increased long-term healthcare costs, and further strain on the financial stability of CHCC,” Babauta and Muna said.
Emmanuel “Arnold” Erediano has a bachelor of science degree in Journalism. He started his career as police beat reporter. Loves to cook. Eats death threats for breakfast.
