Report: Asian crisis impacted NMI healthcare

Despite an increase in federal funding, the economic downturn in Asia has impacted healthcare services in the CNMI since local revenue is generated primarily from tourism and agriculture, according to the newly released 2008 Health Data Report by the Department of Public Health.

“Funding is the biggest challenge for us,” said Public Health Secretary Joseph Kevin Villagomez in a news briefing yesterday on the official release of the report.

The report also lamented the shutting down of the garment industry, which was a significant source of revenue for the government.

Data showed that the 2007 total health expenditure was $38.65 million, with 22 percent of the budget spent on healthcare. This is about $2 million less than the amount in 2006.

This comes even as the need for healthcare services on the islands is soaring.

“Obesity and diabetes are rampant, our cervical cancer rate is significantly high, and the average life expectancy of our people remains lower than that of the U.S. [mainland],” Villagomez said.

He acknowledged that the recent increases in rates at the hospital and satellite clinics are staggering to those already experiencing financial setbacks, yet these barely reflect the high cost of providing quality healthcare to the islands.

“There are no expectations that these trends will change any time soon, and no easy answers to address the problems. However, one of the greatest steps we can take as an island is to take prevention seriously,” he said.

Spending cuts

With its decreasing budget, DPH already anticipates a reduction in healthcare spending.

Data showed that federal funding has seen an increase over the years but this is mainly due to the addition of programs such as the nutrition program for Women, Infants and Children, which was introduced in 2007.

“Healthcare in the CNMI continues to face major challenges in the areas of quality care and financing health care delivery,” the report noted.

However, it said that significant efforts have been made to maintain critical services in a world of soaring healthcare costs.

The report said that these concerns have been recognized for many years but with the deepening financial crisis in the CNMI, “there is an increasing pressure to find solutions that will improve this situation.”

DPH said a current strategic plan is under review. The plan aims to guide efforts in working toward creating a financially stable healthcare system to improve the health of all citizens in the CNMI.

The data showed that there was a steady increase in healthcare expenditures from 2003 ($40.2 million) to 2004 ($40.4 million). In 2005, it went up to $44.7 million, then dipped to $41.2 million in 2006 and further down to $38.7 million in 2007.

Federal funding, in the form of grants, showed a steady increase including $2.67 million in 2003, $2.95 million in 2004, $3.47 million in 2005, $5.21 million in 2006, and $6 million in 2007.

Great tool

Villagomez said the 2008 Health Data Report is a “great tool for the healthcare system” in the CNMI as it would help not only DPH and medical practitioners in planning for their programs but it will also serve as a guide for policymakers.

He said that when DPH asks for increased funding, the Legislature would have a grasp of the health problems and other issues affecting the delivery of healthcare services on the islands.

Although the data does not present the full spectrum of health services, he said it is an attempt to communicate what is available and provides a snapshot of how the various DPH programs and services are performing.