MPLT Board Chairman Alvaro A. Santos said, “MPLT is communicating with the Healthcare Corporation CEO Juan N. Babauta on two proposals involving the [$1.5 million] EHR System and a separate loan proposal of $5 million.
Santos said MPLT has made a preliminary review of both proposals and established certain conditions as part of its due diligence that need to be addressed by the Corporation in order for MPLT to further proceed with the evaluation of both loan proposals.
Asked by Variety what the proposals were and what were MPLT’s conditions and concerns, Santos said, “The healthcare corp. finds it difficult to jumpstart the corporation’s operation of the public hospital effectively with a seed money of only $5 million which comes in $400,000 monthly increments.”
Santos said CHC believes that major reforms are being instituted and cost cutting measures and savings or revenue generating efforts will not have immediate results but given time will produce positive financials.
He also said CHC needs other capital sources to support and keep the corporation’s operations functional and uninterrupted.
He said in reviewing proposals such as this, “MPLT’s due diligence is standard wherein the current fiscal state of the corporation is looked at — its financial needs, corporation’s revenue forecasts for specified periods, balance sheets, and so forth.”
Earlier, MPLT approved in principle the $1.5 million loan for the CHC’s electronic health record project, with the approval contingent on CHC identifying the signatories to the agreement which MPLT was later able to confirm as the CEO and the governor.
The proposal was for a $1.5 million loan for 18 months at 5 percent interest.
The project would establish a network between clinics on Saipan, Tinian, and Rota in pursuit of cutting down paperwork and bureaucracy.
