KOROR (Palau Horizon) — Palau’s medical referral program is running out of money, Vice-President and Minister of Health Sandra Pierantozzi said.
Pierantozzi said the $700,000 earmarked for the program had almost been used up with still five months remaining in the current fiscal year.
Pierantozzi said those who will need the help of the program will have to shoulder their expenses.
In a letter to Dr. Stevenson Kuartei, chairman of the medical referral program, Pierantozzi said that as of April 25, only $41,339 was left, and this is expected to be used up this month.
She said only $99,454 had been collected from medical referral bills, and this money was already used for the purchase of medicine.
According to Pierantozzi, there will be no further funding for medical referrals.
“As we have already ran out of funds, I am advising the committee that any further referrals would have to go at their own expense, as we had to ask everyone to do last year when we ran into similar situation,” Pierantozzi said.
Due to the cash flow and revenue shortfall the country is experiencing, it is “doubtful” that a supplemental budget can be provided to the program, she added.
There is a cash flow problem because the national legislature did not meet the targeted revenue projection from which it based the appropriations, she said.
Pierantozzi added that reprogramming of funds may also be an option but not a viable alternative considering the cash flow.
Pierantozzi said the ministry had already intensified efforts to collect delinquent accounts, “which is still not enough.”
Delinquent accounts for medical referral bills and hospital bills amounted to over $6 million and some date back to 1993.
Last year, the program also ran out of money, but a supplemental budget of at least $100,000 was approved by the Olbiil Era Kelulau, Palau’s national legislature.
