OAG: CHCC, KCHC both at fault

The Office of the Attorney General has concluded that both the Commonwealth Healthcare Corp. and Kagman Community Health Center are at fault in their dispute even as the Department of Public Lands has started to look into revocating the grant of public domain to the corporation to allow the Kagman clinic to continue operation.

In a lengthy Health and Welfare Committee meeting of the Saipan and Northern Islands Legislative Delegation last Friday, both CHCC and KCHC responded to questions relating to the removal of the Kagman clinic from its facility on Lemmai Road, Kagman II, which is public land.

According to an OAG opinion, KCHC has “jeopardized its ability to remain at its current facility” because CHCC could not transfer the property to KCHC.

Since KCHC was awarded the Federally Qualified Health Clinic Grant through grantor Health Resources and Service Administration, KCHC also became independent from CHCC. However, KCHC was operating in a facility that is titled to CHCC, allowing the latter to have the authority to change the locks and alarm code at the Kagman facility and forcing the KCHC to operate at the social hall of Santa Soledad Parish.

According to CHCC chief executive officer Esther Muña, KCHC staff were reportedly “deleting data” and “shredding documents,” forcing CHCC to change its locks and alarm codes.

“This could probably be answered by creative use of designations or by leasing the property to KCHC directly,” said the OAG. “KCHC’s demand for the transfer of this property is curious because the Notice of Funding Opportunity plainly states that property does not automatically transfer, if it transfers at all, to a new grantee.”

In an interview with acting DPL secretary Richard Villagomez, he confirmed that DPL would be looking into “designating the property” to KCHC. He declined to disclose further details as he added it was still up for investigation. Villagomez also did not set a timeline.

Vice speaker Rep. Janet Maratita (R-Saipan), who was also the committee chair, said in an interview after the oversight hearing that the meeting yielded “a good conclusion.”
“It’s in the hands of DPL now, since CHCC is not contesting to revoking the [grant of public domain] at Kagman, so that is a good thing that shows a positive result,” said Maratita. She added that it was understood that CHCC “needed to follow set rules and regulations” pertaining to the grant of public domain to avoid future liability issues with CHCC.

Senate Health and Welfare Committee chair Sen. Teresita Santos (R-Rota), who attended the oversight meeting as a member of the audience, said in a statement to Saipan Tribune that she “strongly recommends” CHCC execute a memorandum of agreement or memorandum of understanding with KCHC to allow them to continue their operations in their facility.

Santos also suggests that CHCC render its “unconditional assistance and support” to KCHC regarding pharmaceutical support; supplies; services; auxiliary staffing; and more that is vital to the operation of KCHC until the end of the clinic’s transition period set in the HRSA grant, which is 78 days as of publication.

“If Rota Health Center is to follow the model or piggyback under KCHC’s license, the former must ensure there is an open dialogue and complete transparency with CHCC as to its application, process, and all other pertinent information,” she added.