Gov. Eloy S. Inos said the Commonwealth Healthcare Corp.’s financial condition has improved but not yet enough to maintain adequate infrastructure, equipment and personnel, even as he extended anew yesterday the state of emergency declaration for CHC.
He also said that CHC management has improved but it is still incomplete and unstable because of continued lack of a chief executive officer. This may thwart the corporation’s ability to meet federal requirements.
The governor said a final decision on CHC’s eligibility for Medicare and Medicaid payments has not been rendered, and steps are still needed to be taken to meet federal requirements or it could lose Medicare and Medicaid funding.
Such steps include the hiring of key medical personnel, the acquisition of medical equipment and supplies, and specified training for CHC staff.
CHC also continues to be in arrears in its utility payments.
The U.S. Centers for Medicare and Medicaid Services notified CHC in 2012 that due to deficiencies in CHC operations and infrastructure, CHC will lose its eligibility to receive Medicare and Medicaid payments. CMS, however, gave a temporary reprieve to CHC.
Both CHC and the Commonwealth Utilities Corp. have been under a state of emergency, the declarations for which have been extended every month.
Early this month, the governor said he is poised to lift the emergency declaration for CHC in early fiscal year 2014, citing improvements in its revenue collection and strides in taking care of immediate needs such as in the area of pharmaceuticals and professional service needs.
Executive orders on CHC and CUC state of emergency suspend applicable procurement regulations and allow for reprogramming of funds to meet these agencies’ emergency needs.