CHCC receives $3M line of credit from land trust
The Commonwealth Healthcare Corp. expects to receive this month a substantial amount that would boost its collections following the announcement yesterday that the Medicare cost settlement for the corporation is forthcoming.
Besides this expected payment, the corporation last week received in full its $3-million line of credit with the Marianas Pubic Land Trust.
Corporation CEO Esther L. Muna confirmed yesterday that the agency received Friday the news that the Medicare cost report settlement will be paid before the end of the month.
Saipan Tribune learned that CHCC has about $3.5 million for its Medicare cost report reimbursement for fiscal year 2012 final settlement and fiscal year 2013 tentative settlement. These reimbursements, it was learned, has nothing to do with the CHCC regular billing.
At a recent MPLT board meeting, it was reported that CHCC had pledged that once it receive this reimbursement, that money will be used as a reserve fund for the payment of the line of credit on or before its due date.
Instead of the per drawdown request for the line of credit, the MPLT board last week decided to release the full $3 million to augment the operational needs of the hospital.
Muña was appreciative of this action by the MPLT board.
“We are grateful to the MPLT board of trustees for approving the third drawdown from the line of credit and assisting CHCC and the CNMI’s lone hospital to meet its obligations in providing health services to our community. With this financial assistance and with the last Friday’s news from Noridian that the Medicare cost report settlement will be paid before the end of the month, CHCC will continue to move forward in its plans to uncover savings, capture revenue, without reducing the quality of care,” she told Saipan Tribune.
Also on Friday, two month’s worth of delayed housing allowances were paid to corporation staff and employees. With this latest payment, only the month of June is still delayed.
Muña earlier identified four areas where the $3 million MPLT loan will be used. These include $2 million to pay vendors, payroll costs for personnel, and other critical needs.
The healthcare agency also wants to procure a dedicated financial system by purchasing AS-400 ($600,000); for utilities ($300,000); and for the CFO salary ($100,000).
CHCC’s new line of credit is good from April 14, 2014, through April 13, 2015, with conditions. The loan is assigned 7 percent per annum interest.