DUE to insufficient funding for the Health Network Program, CNMI medical referral patients in the continental U.S. will no longer receive housing and transportation assistance.
This is among the cost-cutting measures that the Commonwealth Healthcare Corp. is implementing immediately, CHCC Chief Executive Officer Esther Muna informed Gov. Arnold I. Palacios on Thursday.
For the second time in two months, Muna also asked the administration for additional funding for medical referral services which were transferred to CHCC upon enactment of Public Law 22-23.
The fund status report for the program indicated an $811,660.91 deficit as of May 10, 2023.
For fiscal years 2022 and 2023, CHCC received a total of $15,714,107.12 which included $1,621,003.12 in Medicaid reimbursement, but the hospital’s total expenditures for the program was $16,525,768.03.
The program has spent $5.4 million on off-island patients’ housing and more than $5.8 million on travel expenses including car rentals. For medical or pharmaceutical supplies, the expenditure totaled $2,115,728.67.
Muna told the governor that CHCC has taken steps to forewarn patients that subsistence allowance “will [be paused]” until local funding is received.
She said consistent with P.L. 22-33, the law that created the Health Network Program, CHCC is implementing immediately the following measures:
1) Patients with Medicaid coverage can receive airline tickets for themselves and approved escorts. Patients with no airline benefits must pay for airline tickets for themselves and their escorts.
2) Lodging/housing will be provided in Guam and Hawaii when blocked rooms are available. Priority will be given to those with acute medical needs. Housing will stop in the continental U.S., except for the patients who are already there. However, once blocked rooms are vacated, housing will be terminated.
3) Ground transportation will be provided in Guam and Hawaii for all approved referrals to the two locations. Transportation will discontinue in the continental U.S.
4) Pre-payment for medications of Medicaid patients in the continental U.S. will continue.
5) Hospital-to-hospital medevacs will continue.
6) The Health Network Program or HNP staff will continue to provide appointment assistance with partner facilities and look for insurance covered benefits and the most cost-effective means of transport to minimize the individual’s financial burden. The HNP Medical Committee will continue to review referrals for necessity and if the regulations cover the service.
Urgent
Muna told the governor that she was bringing to his immediate attention the urgency to fund medical referrals.
With continuous limited appropriation of funding, she said CHCC made immediate changes so it can stay within the budget that the central government gave CHCC to operate the program. These changes include:
1) Transferring employees to hospital operations (personnel costs were removed from the fund status report).
2) Terminating blocked rooms in Los Angeles, California as they become empty.
3) Terminating 10 rooms in Guam.
4) Shifting bookings through travel agents to purchasing airline tickets online for patients and their escorts.
5) Leaving open positions in Guam and Hawaii vacant.
6) Terminating benefits the program is not obligated to cover.
Muna reiterated her request for additional funding for the medical referral program “as it is critical to the continuation of services for both current and future patients.”
She said if the program does not receive enough funding, services and benefits will continue to be reduced or eliminated “with the potential to impact the health outcomes of the patients who need healthcare not readily available on island.”
